Legal Literacy - This article discusses the situation of workers being laid off by the company due to efficiency reasons. This efficiency reason is not a way to deceive and/or defraud workers, but rather a good and solution-oriented alternative ("win-win solution") that the company is trying to provide, and will grant rights to workers who have worked for a long time and/or contributed to the company. Besides, this kind of termination of employment (PHK) actually creates problems between the parties, namely the company and/or the workers. The problems that often arise are regarding the rights that the company feels have been sufficiently given and also the rights that the workers feel are not sufficiently received. Therefore, this article will explain clearly and concretely about the Rights of Workers When the Company Terminates Employment (PHK) Due to Efficiency Reasons in accordance with the provisions in the laws and regulations in force in Indonesia.Regulations for Termination of Employment for Efficiency Reasons According to the Job Creation LawThe regulation of Termination of Employment (PHK) for Efficiency reasons has been regulated in the provisions of Article 154 paragraph 1 letter b of the Job Creation Law, which states as follows:

Termination of employment can occur for the following reasons:

The company carries out efficiency followed by the closure of the company or not followed by the closure of the company due to the company experiencing losses;

Regulations for Termination of Employment for Efficiency Reasons According to PP 35/2021

  1. In addition, termination of employment as stated above has a different procedure, where further provisions regarding Termination of Employment (PHK) are regulated in