IMPLEMENTATION OF A FIXED TERM WORK AGREEMENT (PKWT) FROM THE PERSPECTIVE OF EMPLOYMENT LAW

Abstract

A Fixed-Term Employment Agreement (PKWT) is a form of employment relationship regulated by Indonesian labor law to meet the need for workforce flexibility in the business world without neglecting legal protection for workers. PKWT regulations have developed through Law Number 13 of 2003 concerning Manpower, which was then updated through Law Number 11 of 2020 concerning Job Creation and further regulated in Government Regulation Number 35 of 2021. This study aims to analyze the provisions of PKWT according to labor laws and regulations and examine the implementation of PKWT in companies in terms of applicable legal provisions. This study uses a normative legal research method with a statutory and conceptual approach. The legal materials used include primary, secondary, and tertiary legal materials obtained through literature studies. The analysis is conducted qualitatively through legal interpretation and deductive reasoning to determine the conformity between legal norms and the implementation of PKWT practices in companies. The research results show that PKWT is regulated in a normative manner, regarding the type of work, duration, form of agreement, record-keeping obligations, and compensation. However, in practice, irregularities are still found, such as the use of PKWT for permanent work, extensions that do not comply with regulations, and non-fulfillment of workers' rights. This indicates a gap between normative regulations and implementation in the field. Therefore, more effective supervision and law enforcement are needed to ensure that PKWT implementation is carried out in accordance with legal provisions and provides certainty and protection for workers without hindering the needs of the business world.