PKWT (Perjanjian Kerja Waktu Tertentu or Fixed Time Employment Agreement) is one of the newest policies in employment. Based on the regulation about PKWT, Law Number 35, the Year 2021, PKWT is an employment agreement between workers and employers to establish a working relationship within a certain time or for a particular job.

In a webinar held by SBM ITB with Oleco, I Wayan Gunada, SH., MH, the CEO and Founder of PT. Oleco Reliable Application, confirmed that the PKWT agreement has a clear period, a maximum of five years. It must not require probationary work, must be made written or oral, written PKWT must be registered at the Employment Office, and cannot be extended for any reason.

Then, PKWT workers certainly have the right to compensation money stipulated in Law Number 11 the Year 2020. The compensation is the working year multiplied by the monthly wage. If the working period has not yet reached a year, the compensation is given based on the working period of the workers.

“The PKWT work agreement must go through the process of negotiating work and be implemented in written form. So, the agreement can run well and in accordance with the regulation”, said I Wayan.

In contrast to the outsourcing company, the workers who do permanent work in outsourcing companies have the status of  PKWTT (Perjanjian Kerja Waktu Tidak Tertentu or Indefinite Time Employment Agreement). Meanwhile, outsourcing company workers who do work on clients can be called PKWT workers.

To minimize the abuse of labor agreements (workers are employed permanently but treated as in the PKWT agreement process), there are several tips for PKWT workers:

  1. PKWT contract must be made in writing
  2. After the PKWT is signed, workers are required to keep the original documents.
  3. All workers’ rights are mandatory under the contract
  4. Try to value all components of wages in one wage value
  5. The salary must be in accordance with the applicable rules

Talent or Workforce Development in the Gig Economy Era

“Gig Economy is a labor economy trend where companies or clients tend to recruit independent workers (freelancers) to do temporary work,” said Prof. Aurik Gustomo, the Vice Dean of Academic Affairs of SBM ITB, in the second session of the webinar.

Several characteristics of the Gig Economy era are supported by internet and digital applications, paid results-based (On-Demand), short-term and non-permanent contracts, side jobs for some people, and the presence of flexibility or exploitation in this era.

Gig Economy has several positive sides, such as:

  1. Offering autonomy and flexibility in working
  2. Increasing job participation and reduce unemployment
  3. Offering more job options; thus, encouraging innovation and competition.

The Gigs Economy era is an opportunity for companies. There is the flexibility of recruiting and hiring workers as a form of adaptation (in the era of VUCA), and the efficiency of the compensation structure due to recruiting gig workers can be allocated to other needs related to business expansion.

Then this Era of Gigs Economy can be an opportunity for everyone to get work flexibility and the spirit of entrepreneurship. Thus, this era teaches workers and talents to continue learning and have lifelong learning in work. However, the Gig Economy makes the position of workers weaker, without regulation (government) and moral compass (companies), and gig workers tend to be victims of exploitation.

With the PKWT rules or agreements, Gigs workers can be more assured under clear rules. Therefore, workers will be more focused on developing skills and knowledge with several strategies, such as following open online courses, sharing knowledge between workers, building accumulated knowledge/portfolio, and utilizing learning and development programs in the company.

Written by Student Reporter (Hutahaean Andina Putri Melinda Gamaliel, Management 2021)