Proceedings of the Social and Humanities Research Symposium (SORES 2020)

Employee’s Position as Privileged Creditors When Debt of Bankruptcy is Larger Than Bankruptcy Assets

Authors
Mima Rosmiati, Yeti Sumiati, Efik Yusdiansyah, Annisa Ramadhani
Corresponding Author
Yeti Sumiati
Available Online 19 June 2021.
DOI
https://doi.org/10.2991/assehr.k.210617.025How to use a DOI?
Keywords
employee rights, wages, and severance pay, bankruptcy
Abstract

When the company is declared bankrupt, workers’ rights are fulfilled through the Curator’s bankruptcy assets sale. Even though employees have a unique position as creditors, if the bankruptcy debtor’s liabilities are much greater than the debt, these privileges do not directly make the employee the first party to be paid for their obligations. Separatist creditors are put first so that employees do not get full rights. This study aims to determine the fulfillment of workers’ rights when the company is declared bankrupt. This study uses a normative juridical approach. Data in the form of regulations, decisions of the commercial court and the Supreme Court, and journal articles are obtained through internet searches. The supporting data in the form of interviews and questionnaires obtained directly from employee representatives will be used as a comparison. The data obtained were then analyzed descriptively, qualitatively, and deductively. Although the Law regulates employee’s rights to get wages and severance pay, when the company is declared bankrupt, workers do not get full rights or do not provide a sense of justice for workers, which is constitutionally guaranteed in Article 28 D of the 1945 Constitution.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the Social and Humanities Research Symposium (SORES 2020)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
19 June 2021
ISBN
978-94-6239-396-7
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.210617.025How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Mima Rosmiati
AU  - Yeti Sumiati
AU  - Efik Yusdiansyah
AU  - Annisa Ramadhani
PY  - 2021
DA  - 2021/06/19
TI  - Employee’s Position as Privileged Creditors When Debt of Bankruptcy is Larger Than Bankruptcy Assets
BT  - Proceedings of the Social and Humanities Research Symposium (SORES 2020)
PB  - Atlantis Press
SP  - 122
EP  - 128
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210617.025
DO  - https://doi.org/10.2991/assehr.k.210617.025
ID  - Rosmiati2021
ER  -