The Covid-19 Pandemic as The Basis for Termination of Employment in Indonesia, Between Force Majeure or Efficiency (Analysis of Decision Number: 781 K/Pdt.Sus-PHI/2021)

Abstract

The 2019 Coronavirus Disease (Covid-19) pandemic caused a health crisis and caused economic disruption, one of which was companies experiencing decreased sales or orders, decreased revenues, increased losses, and even company closures. One of the steps taken by the company is to terminate the employment relationship (PHK), which often causes debate about the terms and compensation for the layoffs received by workers. Things that are often debated include whether the layoffs due to the Covid-19 pandemic were carried out based on force majeure or efficiency. This research was conducted to determine how the layoffs are arranged due to force majeure and efficiency and to determine the views of the panel of judges who examined cases of industrial relations disputes in Decision Number 781 K/Pdt.Sus-PHI/2021. This study uses a normative juridical method with descriptive characteristics, which uses primary and secondary legal materials. The results of this study indicate that the labor law both before and after the enactment of Law Number 11 of 2020 concerning Job Creation provides space for employers to carry out layoffs based on force majeure or efficiency, and there are significant differences in arrangements before and after the enactment of the Job Creation Act. The view of the Panel of Judges in case Number 781 K/Pdt.Sus-PHI/2021, there is a need for a causal relationship between the Covid-19 pandemic and conditions that force employers to lay off workers. If causality cannot be proven, layoffs are an efficiency measure to reduce the impact of the Covid-19 pandemic.