The Principle of Justice in Unilateral Termination of Employment: A Critical Legal Analysis of the Job Creation Law

Abstract

Unilateral termination of employment (PHK) has become a crucial issue in the dynamics
of the Indonesian labor market, particularly following the enactment of Law Number 11
of 2020 concerning Job Creation. This study aims to analyze the principle of justice in
the practice of unilateral layoffs through a critical legal approach. This approach is used
to examine whether the provisions of the Job Creation Law reflect substantive justice for
workers or actually strengthen the dominance of employer interests. The research
method used is normative juridical with a statutory and conceptual approach, and
qualitative analysis. The results show that although the Job Creation Law claims to
provide flexibility in industrial relations, in practice it has the potential to weaken legal
protection for workers experiencing unilateral layoffs. Therefore, a more balanced
policy formulation is needed so that the principle of justice can truly be realized in the
employment relationship between employers and employees.