Legal Protection of Employee Rights in Bankrupt Limited Liability Companies

Abstract

Constitutional Court Decision No. 67/PUU-XI/2013 states that particular creditors whose position is higher than separatist creditors, as referred to in Article 60 paragraph (2), are wages from unpaid workers. So, legally, protecting the employees of a limited liability company that has been bankrupt has greater power. This research is intended to answer the questions: 1). What is the legal protection for employees of a limited liability company that has gone bankrupt?; and 2). What are the Implications of the Decision of the Constitutional Court Number: 67/PUU-XI/2013?

The research methodology used is a qualitative method through the study of legislation. Thus, it is known that the position of separatist creditors on workers' wages after the Constitutional Court's Decision Number 67/PUU-XI/2013 has a position below the workers' wages. This is a legal breakthrough from the provisions stipulated in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations and the applicable guarantee law. So it is clear that if there is bankruptcy, workers' wages now have a higher position than the separatist creditors. Thus, the decision of Constitutional Court Number: 67/PUU-XI/2013 can protect the rights of Limited Liability Company Employees.