THE EFFECTS OF COMPENSATION FOR CONTRACTUAL EMPLOYEES: A CASE STUDY OF COAL MINING COMPANY IN INDONESIA

• Main Author: Widianingsih, Heni
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/77009
• Institution: Institut Teknologi Bandung

The existence of labour law in Indonesia, which regulates the rights and obligations of employers and workers, is based on regulations to prevent the occurrence of slavery or arbitrary actions. The main foundation of labour and employment law in Indonesia is none other than the 1945 Indonesian Constitution. The existence of a new regulation in the world of work, namely the Job Creation Law, which specifically discusses compensation for PKWT employees and whose implementation is regulated in Government Regulation No. 35 of 2021, is a new thing to highlight. This research is qualitative in nature and was conducted by collecting data through interviews with several contract employees at a coal mining company. There are several influences on employees and the company itself regarding the payment of compensation. The compensation received by contract employees at the end of each period affects their happiness because it directly increases their income in anticipation of not renewing the contract later. Meanwhile, the company suffers a loss in terms of cash flow due to this burning obligation to pay compensation every year to every contract employee. Thus, there are several recommendations related to the effect of this compensation, namely shortening the contract period, and readjusting the status of employees according to their work.