LEGAL PROTECTION ON LABOUR RIGHTS IN CONNECTION WITH BANKRUPTCY AGAINST DEBTOR IN THE FORM OF LIMITED LIABILITY COMPANY

Abstract

The employment relationship between an Employer and Labor occurred based on a work agreement, because there are elements of works. Wages and order/instruction. Work relationship will terminate due to a particular reason that resulting an end of rights and obligations between labor and employer. For the termination of work relationship caused by the company/employer declared bankrupt or liquidated based on applicable regulations, the outstanding /indebted wages and other rights of the labours shall become the debt which payment must be prioritized as regulated in manpower regulation.The issue being discussed in this thesis is: How is the existence of labour claim in a bankruptcy of a debtor in the form of Limited Liability Company, and what is the effori of legal protection on labour claim in such bankruptcy of a debtor in the form of Limited Liability Company.From the results of the research, it can be obtained a legal protection on labour right in connection with a bankruptcy being a cross-point between the Law of Manpower and Law of Bankruptoy and other Laws.By virtue of the Decree of Council of Constitution Number 671PUU-XIl2013, it is specified that the outstanding labour wages payment shall be prioritized from creditors claim (bank), labour claim on other allowances, state claim on tax, other concurrent creditor claimsThe legal protection on labour right in connection with bankruptcy will be realized according to the implementation of the Decree of Council of Constitution Number 6l1PUU-XI12013, being supported by the role of Curator to avoid any conflict of interests with debtor or creditors. Other alternative is that by inviting a Notary Public during a three party negotiation (Tripartit) at the Office of Manpower to be expressed in an agreement between the parties so will have an authentic proofing power.