Assessing the Validity of Penalty Clauses in Fixed-Term Employment Agreements: A Perspective of Justice and Worker Protection

Assessing the Validity of Penalty Clauses in Fixed-Term Employment Agreements: A Perspective of Justice and Worker Protection | Zenodo Skip to main Communities My dashboard Log in Sign up Zenodo is currently experiencing slowness and intermittent outages due to heavy automated traffic from bots and AI crawlers. We are aware of the problem, and our team is focused on stabilizing the service. Thank you for your patience. Published May 5, 2026 | Version v1 Journal article Open Assessing the Validity of Penalty Clauses in Fixed-Term Employment Agreements: A Perspective of Justice and Worker Protection Authors/Creators Surya Triputra Fauzi, 1 Achmad Busro, 1 Show affiliations 1.

Master of Law Program, Faculty of Law, Diponegoro University, Indonesia. Description This study aims to analyze the validity of penalty clauses in Fixed-Term Employment Agreements (Perjanjian Kerja Waktu Tertentu/PKWT) from the perspectives of labor law and contract law. The background of this study is based on the widespread use of standard-form contracts in employment relationships, which tend to place workers in a weaker position, particularly through the inclusion of disproportionate and unilateral penalty clauses. This study employs a normative legal method using a statutory approach and a conceptual approach. The data used are secondary data obtained through literature review, which were then qualitatively analyzed by examining the compliance of penalty clauses in PKWT with the provisions of Article 62 of the Labor Law as well as the principles of contract law. The research findings indicate that, normatively, Article 62 of the Labor Law has established restrictive limits on damages in fixed-term employment contracts, thereby leaving no room for the imposition of additional obligations exceeding these provisions. However, in practice, penalty clauses that exceed these limits and are disproportionate are still found. Such clauses do not meet the requirements for the validity of an agreement, particularly regarding lawful grounds, and do not reflect the principles of balance and good faith. Furthermore, penalty clauses that are not reciprocal also conflict with the principles of justice and worker protection, as they create an imbalance in the distribution of risk and restrict workers freedom in the employment relationship. Thus, penalty clauses in fixed-term employment contracts that are disproportionate and unilateral cannot be deemed valid either legally or substantively. Files 10.pdf Files (320.9 kB) Name Size Download all 10.pdf md5:74b47818ebea0eefbe38cac7c20e7bd3 320.9 kB Preview Download 41 Views 15 Downloads Show more details All versions This version Views Total views 41 41 Downloads Total downloads 15 15 Data volume Total data volume 4.8 MB 4.8 MB More info on how stats are collected.... Versions External resources Indexed in OpenAIRE Communities Keywords and subjects Keywords Penalty clause; PKWT; contract law; justice; worker protection; standard form contract Details DOI DOI Badge DOI 10.5281/zenodo.20033937 Markdown [](https://doi.org/10.5281/zenodo.20033937) reStructuredText .. image:: https://zenodo.org/badge/DOI/10.5281/zenodo.20033937.svg :target: https://doi.org/10.5281/zenodo.20033937 HTML <a href="https://doi.org/10.5281/zenodo.20033937"><img src="https://zenodo.org/badge/DOI/10.5281/zenodo.20033937.svg" alt="DOI"></a> Image URL https://zenodo.org/badge/DOI/10.5281/zenodo.20033937.svg Target URL https://doi.org/10.5281/zenodo.20033937 Resource type Journal article Publisher International Journal of Social Science and Human Research Published in International Journal of Social Science and Human Research, 09(05), 3518-3525, ISSN: 2644-0695, 2026. Languages Old English (ca. 450-1100) Rights License Creative Commons Attribution 4.0 International The Creative Commons Attribution license allows re-distribution and re-use of a licensed work on the condition that the creator is appropriately credited. Read more Citation Export Technical metadata Created May 5, 2026 Modified May 5, 2026 Jump up About About Policies Infrastructure Principles Projects Roadmap Contact Blog Blog Support Help FAQ Developers REST API OAI-PMH Contribute GitHub Donate Funded by Powered by CERN Data Centre & InvenioRDM Status Privacy policy Cookie policy Terms of Use This site uses cookies. Find out more on how we use cookies Accept all cookies Accept only essential cookies

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