Legal Certainty in the Protection of Fixed-Term Contract Workers

The regulation of fixed-term contracts (Perjanjian Kerja Waktu Tertentu, PKWT) in Article 8(1)–(2) of Indonesian Government Regulation (PP) No. 35 of 2021 exhibits an internal inconsistency. Article 8(1) sets a maximum term of five years. Article 8(2) allows an extension, by agreement between the employer and the worker, where the work has not been completed, provided that the aggregate term, including any extensions, does not exceed five years. This raises a critical problem: if the work remains unfinished after five years, the Regulation provides no clear pathway, thereby undermining legal certainty. In practice, implementation of the PKWT regime has generated concern. Drawing on fieldwork in Pujungan Village, Tabanan Regency, workers reported anxiety upon reaching the five-year threshold―uncertain whether their contracts would be renewed or terminated―despite ongoing mutual need between workers and employers. This study addresses two questions: (1) the nature of legal protection for Fixed-Term Contract Workers, and (2) a regulatory model capable of ensuring legal certainty for such workers. Adopting a doctrinal–empirical legal method with statutory, conceptual and analytical approaches, the study finds that protection operates both ex ante (preventive), through clear, certain rules, and ex post (judicial), through court-based dispute resolution enforcing workers’ rights. It proposes a regulatory model that retains a five-year default term but permits renewal beyond five years, by mutual agreement and where the work objectively requires it, thereby restoring legal certainty for Fixed-Term Contract Workers.