This legal writing was entitled Legal Protection on Employees Rights of A Company
that was declared Bankrupt. The legal problem in this research is how the legal
protection on employees right in a company if the company was declared bankrupt.
The purpose of this research is to analyze the legal protection on employees in a
company if the company was declared bankrupt. This legal research using
normative research method that focused on legislations and literature study if a
company experience bankruptcy. The conclusion of this research are the employees
were classified as preferenced creditors that has a privilege to get the employee’s
rights from the company (debitor) such as severance pay compensation for
entitlement, compensation for work period achievement and every payment that
related with it were classified as the privileged accounts receivable based on Article
95 Paragraph (1) and Article 156 Paragraph (1) Law number 11 of 2020
concerning Job Creation. In the end, legal protection on emlployees right of a
company that was declared bankrupt actually based on the agreement that was
made by both of the parties in the beginning of work period that was including the
employee’s rights that were mention above. So, it’s important to be given to the
employees because it can make the employee’s disadvantage if it wasn’t given,
especially when the company experience bankruptcy and still on the court process.