Legal Analysis of the Fulfillment of Workers' Rights and Obligations Without an Employment Contract in Sole Proprietorships Based on the Employment Law (Case Study in Pekanbaru City in 2024)

Abstract

An oral employment agreement is an employment relationship made without the signing of an employment agreement. An oral employment agreement is sufficient with a statement that is mutually agreed upon by both parties and should be witnessed by at least two witnesses. Of the various existing regulations, there is no prohibition on the practice of oral employment agreements as long as the valid conditions of the agreement stated in Article 1601 (a) of the Civil Code are met. In the world of business, an oral employment agreement can be a practical option that remains valid and binding. The main problem in this research is how to analyse the legal aspects of the fulfilment of workers' rights and obligations without an employment contract in a sole proprietorship and what the obstacles and barriers are in the implementation of the fulfilment of workers' rights and obligations without an employment contract in a sole proprietorship based on the Employment Law. The research method, based on the type and nature of the research, is empirical law, namely observational research using a survey. It is descriptive in nature, namely, describing the legal analysis of the fulfilment of workers' rights and obligations without an employment contract in individual trading businesses based on employment law, with data and data sources consisting of primary legal materials and secondary legal materials. The results of this research and discussion address two issues: employment law and employment contracts. Although employment relationships without written contracts are common in sole proprietorships, this does not diminish employers' obligation to continue to fulfil workers' rights as stipulated in the Job Creation Law, particularly those related to social protection and worker welfare.