LEGAL ANALYSIS OF UNILATERAL TERMINATION OF EMPLOYMENT WITHOUT DUE PROCESS (Case Study: Termination of a State-Owned Bank Employee at the Banjar Branch)

Abstract

This paper examines the legality of unilateral termination of employment without due process under Indonesian labor law, focusing on the case of thirty-one employees at a state-owned bank's Banjar Branch. The study aims to analyze the legal framework governing termination, evaluate mandatory dismissal procedures, and assess whether the employer's actions complied with applicable legislation. This research employs a normative legal method by examining constitutional provisions, statutes, government regulations, legal doctrines, and relevant literature. The findings indicate that Indonesian labor law requires termination to remain a last resort after preventive efforts, written notification, bipartite negotiations, and, when necessary, formal dispute resolution. Employers must also provide lawful reasons and fulfill workers' entitlements, including severance pay, service awards, and compensation. The analyzed case demonstrates that the employer failed to comply with these procedural and substantive requirements by dismissing employees unilaterally, neglecting negotiations, and freezing employees' bank accounts without a valid legal basis. Consequently, the termination constituted an unlawful act that violated workers' constitutional and statutory rights, exposing the employer to legal liability before the Industrial Relations Court. The study concludes that recent reforms introduced through the Job Creation Law simplify administrative procedures but do not diminish employers' obligations to respect due process and workers' rights. Effective enforcement, stronger regulatory compliance, and continuous government oversight are essential to ensure fair industrial relations, legal certainty, and balanced protection for both employers and employees in Indonesia. These findings provide practical guidance for employers, employees, policymakers, and courts in strengthening lawful employment termination practices and preventing disputes