Legal Certainty in the Protection of Fixed-Term Contract Workers

The regulation of fixed-term contracts (Perjanjian Kerja Waktu Tertentu, PKWT) in Article 8(1)–(2) of Indonesian Government Regulation (PP) No. 35 of 2021 exhibits an internal inconsistency. Article 8(1) sets a maximum term of five years. Article 8(2) allows an extension, by agreement between the employer and the worker, where the work has not been completed, provided that the aggregate term, including any extensions, does not exceed five years. This raises a critical problem: if the work remains unfinished after five years, the Regulation provides no clear pathway, thereby undermining legal certainty. In practice, implementation of the PKWT regime has generated concern. Drawing on fieldwork in Pujungan Village, Tabanan Regency, workers reported anxiety upon reaching the five-year threshold―uncertain whether their contracts would be renewed or terminated―despite ongoing mutual need between workers and employers. This study addresses two questions: (1) the nature of legal protection for Fixed-Term Contract Workers, and (2) a regulatory model capable of ensuring legal certainty for such workers. Adopting a doctrinal–empirical legal method with statutory, conceptual and analytical approaches, the study finds that protection operates both ex ante (preventive), through clear, certain rules, and ex post (judicial), through court-based dispute resolution enforcing workers’ rights. It proposes a regulatory model that retains a five-year default term but permits renewal beyond five years, by mutual agreement and where the work objectively requires it, thereby restoring legal certainty for Fixed-Term Contract Workers.

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Publication Details

Journal
International Journal of Research and Innovation in Social Science
Published
2025-09-20
DOI
https://doi.org/10.47772/ijriss.2025.908000551
Primary Topic
Digital Economy and Work Transformation
Type
article
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article

Legal Certainty in the Protection of Fixed-Term Contract Workers

I Ketut Kasta Arya Wijaya, Ni Komang Arini Styawati, I Wayan Rideng, Made Wiyani et al.
International Journal of Research and Innovation in Social Science
Digital Economy and Work Transformation
article

Legal Certainty in the Protection of Fixed-Term Contract Workers

I Ketut Kasta Arya Wijaya, Ni Komang Arini Styawati, I Wayan Rideng, Made Wiyani, Heri Dianostika
article en

Abstract

The regulation of fixed-term contracts (Perjanjian Kerja Waktu Tertentu, PKWT) in Article 8(1)–(2) of Indonesian Government Regulation (PP) No. 35 of 2021 exhibits an internal inconsistency. Article 8(1) sets a maximum term of five years. Article 8(2) allows an extension, by agreement between the employer and the worker, where the work has not been completed, provided that the aggregate term, including any extensions, does not exceed five years. This raises a critical problem: if the work remains unfinished after five years, the Regulation provides no clear pathway, thereby undermining legal certainty. In practice, implementation of the PKWT regime has generated concern. Drawing on fieldwork in Pujungan Village, Tabanan Regency, workers reported anxiety upon reaching the five-year threshold―uncertain whether their contracts would be renewed or terminated―despite ongoing mutual need between workers and employers. This study addresses two questions: (1) the nature of legal protection for Fixed-Term Contract Workers, and (2) a regulatory model capable of ensuring legal certainty for such workers. Adopting a doctrinal–empirical legal method with statutory, conceptual and analytical approaches, the study finds that protection operates both ex ante (preventive), through clear, certain rules, and ex post (judicial), through court-based dispute resolution enforcing workers’ rights. It proposes a regulatory model that retains a five-year default term but permits renewal beyond five years, by mutual agreement and where the work objectively requires it, thereby restoring legal certainty for Fixed-Term Contract Workers.

International Journal of Research and Innovation in Social Science
Openalex Percentile: Top 66%
Digital Economy and Work Transformation
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