What Are PKWT And The Rules Inside It That Must Be Known Are New Employees

Illustration of the work agreement (Unsplash/Sebastian Hermann)

YOGYAKARTA Contract agreement is one of the important things that workers must understand, especially for new employees. One of them is the type of contract is PKWT. What is PKWT and what is the contract system?

PKWT is usually notified to new employees after being declared accepted and when signing a work contract. PKWT contains information regarding work agreements between employees and companies and a number of rules that must be obeyed.

In addition to agreeing on a work agreement between companies and employees, PKWT is also useful for anticipating various risks that occur in the future. Risks that can cause losses to companies and workers. So what are PKWT and its rules?

PKWT stands for a certain time work agreement. Based on Government Regulation (PP) No. 35 of 2021, PKWT is a work agreement based on a limited period of time or type of work.

PKWT is a form of binding work agreement between workers / worseners and employers. PKWT contains rules including work requirements, employee rights, and obligations. PKWT is made in writing or verbally and implemented in accordance with the provisions of the legislation.

PKWT is a work agreement for work that can be completed within a certain time or not too long. This work agreement is temporary or can be said to be seasonal. Therefore, this work contract cannot apply to work that is permanent or carried out for a long time.

The working period in the PKWT contract is regulated in accordance with the cooperation agreement between the company and workers. The maximum limit for this work agreement cannot be more than 5 years. If the PKWT period has expired, a termination of the agreement will be made. However, PKWT which has expired can also be extended to a contract or transferred to a PKWTT (work agreement that bounds permanent employees who do not have a validity period).

The PKWT does not allow the implementation of the probation period. If the company imposes a probation period, the trial period will be legally canceled. In addition, the probation period will automatically be included in the PKWT contract period.

The compensation or wages given to PKWT workers is regulated in a work agreement letter agreed by the company and employees. PKWT has the right to receive severance pay in the event of termination of employment (PHK). This rule is contained in the Job Creation Law Article 81 Paragraph 44.

Companies are required to provide severance pay or service award money (UPMK) to PKWT employees who are laid off. This rule also provides protection to PKWT workers when layoffs occur or layoffs. The amount of severance pay has been regulated in the legislation which is determined from the length of the work period.

The status of PKWT employees can be transferred to PKWTT. This provision is contained in the Decree of the Minister of Manpower and Transmigration of the Republic of Indonesia (KEP.100/MEN/VI/2004) regarding the provisions for the implementation of certain time work agreements. Here are the provisions:

That is the review of what PKWT is and a number of rules. This work agreement must be known by employees before starting work or signing contracts at a company. By knowing a number of rules in PKWT, employees can avoid bad risks that can occur.

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