Rules and Requirements for Layoffs Under the New Law, Potentially Null and Void by Law

Published 2026-11-09

Termination of employment (PHK) in Indonesia has once again become a matter of public attention. CNBC Indonesia reports that the new law sets out rules and requirements for PHK that must be met by both companies and workers.

According to the report, a PHK that does not meet the requirements stipulated in the law may be null and void by law. This means that a PHK decision no longer has legal force if its procedures do not comply with the applicable rules. This provision is important because it concerns the basic rights of workers, especially the right to job security and protection from unlawful dismissal.

In practice, companies must follow the procedures that have been established before terminating an employment relationship with an employee. Workers who feel harmed may also understand their rights and seek resolution through the available channels. However, the details of each procedural stage and the types of requirements that must be met are not fully explained in this news source.

Therefore, workers and employers are advised to read the text of the law and its implementing regulations directly. Official information from the government or labor institutions can also help ensure a proper understanding of rights and obligations in the PHK process.

Sources: CNBC Indonesia

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