The Transition of Employment Status from Fixed-Term Employment Agreement (PKWT) to Permanent Employment Agreement (PKWTT) based on Court Decision Number 21/Pdt.Sus-PHI/2024/PN Kdi

In the practice of industrial relations in Indonesia, Fixed-Term Employment Agreements (PKWT) are often used by companies to meet short-term labor needs. However, it is not uncommon for companies to continuously extend PKWT contracts or rehire the same workers without changing their employment status, even though such workers have fulfilled the legal requirements to be appointed as permanent employees in accordance with prevailing laws and regulations. This research discusses the Transition of Employment Status from a Fixed-Term Employment Agreement (PKWT) to a Permanent Employment Agreement (PKWTT) Based on Court Decision Number 21/Pdt.Sus-PHI/2024/PN Kdi. This study is a type of normative legal research. The approach used is the Case Approach and the Statute Approach. The research findings reveal that the Legal Consideration of the Panel of Judges in determining the transition of employment status from PKWT to PKWTT in Decision Number 21/Pdt.Sus-PHI/2024/PN Kdi was based on the fact that the Plaintiff had been employed for more than five (5) years. Therefore, in accordance with Article 5 paragraph (1) letter a and Article 6 of Government Regulation No. 35 of 2021, the employment termination conducted by the Defendant on the grounds that the Plaintiff violated the employment agreement resulted in the Plaintiff still being entitled to normative rights. These rights, pursuant to Article 52 paragraph (1) of Government Regulation No. 35 of 2021, include severance pay, long service award, and compensation for entitlements, amounting in total to IDR 16,405,640.00 (sixteen million four hundred five thousand six hundred forty rupiahs).