Analisis Putusan Mahkamah Agung No. 1097K/Pdt.Sus-PHI/2017 mengenai Pemutusan Hubungan Kerja yang dilakukan Perusahaan dengan Alasan Efisiensi

Analysis of the Supreme Court's Decision Number 1097K/Pdt.Sus-PHI/2017 regarding the Work Termination by the Company for Efficiency

Indonesia has a basic right to earn a decent living by working. The problem is that several large-scale companies in Indonesia still has not awareness about workers' rights. For example in the Industrial Relations Dispute that occurred between PT Tjiwi Kimia and its employees which continued until the litigation process. PT Tjiwi Kimia conducts efficiency by laying off employees with bad grades in the annual performance appraisal, where layoffs should be the last resort that can be taken by the company in the context of efficiency. The Supreme Court supports the Decision of the Panel of Judges of the Industrial Relations Dispute Court that the efficiency carried out by PT Tjiwi Kimia has been well-founded in accordance with Article 164 paragraph (3) of Law Number 13 of 2003 concerning Labour, where the article is declared to have no permanent legal force as long as it is not interpreted as "permanently closing companies or not temporarily closing companies" by a Constitutional Court Judge. The author intends to carry out research on the considerations used by the Panel of Judges of the Supreme Court in deciding the case on Decision Number 1097K/Pdt.Sus-PHI/2017. This study uses a normative legal method with a statutory approach and a case approach. The results of the study indicate that the Panel of Judges is not quite right in implementing Article 164 paragraph (3) of the Labour Law. The discrepancy is based on the absence of company closing activities at PT Tjiwi Kimia, either temporarily or permanently.