Juridical Analysis of Employment Relations between Employers and Workers Based on Oral Work Agreements

Oct 13, 2025 by wbrum.org 110 views

Juridical Analysis of Employment Relations between Employers and Workers Based on Oral Work Agreements

Introduction

In the realm of employment law, the concept of oral work agreements has been a topic of discussion for many years. An oral work agreement, also known as an oral labor agreement, is a type of employment contract that is specifically applied to an indefinite time work agreement (PKWTT). This type of agreement is characterized by the absence of a written document, with the agreement being witnessed by a minimum of two witnesses. In this article, we will conduct a juridical analysis of employment relations between employers and workers based on oral work agreements, with a focus on the case study of the Industrial Relations Court's decision on Medan State Income Number: 41/G/2009/PHI.Mdn.

The Significance of Oral Work Agreements

Oral work agreements are a common practice in many industries, particularly in the informal sector. However, this type of agreement has several weaknesses that can lead to disputes and conflicts between employers and workers. One of the main problems arising from the use of oral work agreements is the difficulty for workers to prove their employment relations in disputes in the Industrial Relations Court. Without valid documentary evidence, workers find it challenging to show that they have been bound in a employment relationship.

The Provisions of Law Number 13 of 2003

Article 63 paragraph (1) of Law Number 13 of 2003 requires entrepreneurs to make a letter of appointment for workers in oral agreements. However, many entrepreneurs ignore this provision, resulting in a lack of certainty in the employment relationship. This can lead to disputes and conflicts between employers and workers, particularly in cases where the worker has passed the probation period but the entrepreneur does not issue an official appointment letter.

The Weaknesses of Oral Work Agreements

One of the main weaknesses of oral work agreements is the difficulty for workers to prove their employment relations in disputes in the Industrial Relations Court. Without valid documentary evidence, workers find it challenging to show that they have been bound in a employment relationship. This can lead to a lack of certainty in the employment relationship, which can result in disputes and conflicts between employers and workers.

The Importance of Written Evidence

In order to overcome the problems encountered in oral work agreements, it is essential for workers to ask for written evidence or official documents regarding employment, even in a simple format. Educating themselves about rights and obligations in employment and taking more proactive steps to ensure their rights can prevent future problems. A clear and written work agreement arrangement will provide long-term benefits for both entrepreneurs and workers.

Recommendations for Employers and Workers

To overcome the problems encountered in oral work agreements, it is recommended that entrepreneurs remain committed to making a letter of appointment even though there is no legal obligation that violates the rules. This not only protects the rights of workers but also provides legal certainty for employers themselves. On the other hand, for workers, it is essential to always ask for written evidence or official documents regarding employment, even in a simple format.

The Benefits of Written Work Agreements

A clear and written work agreement arrangement will provide long-term benefits for both entrepreneurs and workers. What's more, in the current competitive world of work, legal certainty in the work agreement is very crucial to create a harmonious and productive work environment. Thus, both entrepreneurs and workers will be able to undergo mutually beneficial work relationships and minimal risk of disputes in the future.

Conclusion

Through this analysis, it is expected that there is an increase in awareness about the importance of formality in work agreements, both verbally and in writing, in order to create stability and legal protection in the world of employment. By understanding the weaknesses of oral work agreements and the importance of written evidence, both employers and workers can work together to create a more harmonious and productive work environment.

Recommendations for Future Research

Future research should focus on the implementation of written work agreements in various industries and the impact on employment relations. Additionally, research should be conducted on the effectiveness of the Industrial Relations Court's decision on Medan State Income Number: 41/G/2009/PHI.Mdn in resolving disputes related to oral work agreements.

References

Law Number 13 of 2003 on Manpower
Industrial Relations Court's decision on Medan State Income Number: 41/G/2009/PHI.Mdn
Various articles and research papers on employment law and oral work agreements.

Keywords

Oral work agreements
Employment law
Industrial Relations Court
Written work agreements
Employment relations
Labor law

Abstract

This article conducts a juridical analysis of employment relations between employers and workers based on oral work agreements. The analysis focuses on the case study of the Industrial Relations Court's decision on Medan State Income Number: 41/G/2009/PHI.Mdn. The article highlights the weaknesses of oral work agreements and the importance of written evidence in resolving disputes. Recommendations are made for employers and workers to work together to create a more harmonious and productive work environment.
Frequently Asked Questions (FAQs) about Oral Work Agreements

Q: What is an oral work agreement?

A: An oral work agreement, also known as an oral labor agreement, is a type of employment contract that is specifically applied to an indefinite time work agreement (PKWTT). This type of agreement is characterized by the absence of a written document, with the agreement being witnessed by a minimum of two witnesses.

Q: What are the benefits of oral work agreements?

A: Oral work agreements can provide flexibility and convenience for both employers and workers. They can also be used as a temporary solution until a written agreement can be formalized.

Q: What are the weaknesses of oral work agreements?

A: One of the main weaknesses of oral work agreements is the difficulty for workers to prove their employment relations in disputes in the Industrial Relations Court. Without valid documentary evidence, workers find it challenging to show that they have been bound in a employment relationship.

Q: What is the significance of written evidence in employment relations?

A: Written evidence is essential in employment relations as it provides proof of the employment agreement and the terms and conditions of employment. It also helps to prevent disputes and conflicts between employers and workers.

Q: What are the consequences of not having a written work agreement?

A: Not having a written work agreement can lead to disputes and conflicts between employers and workers. It can also result in a lack of certainty in the employment relationship, which can lead to problems in the future.

Q: How can workers protect their rights in employment relations?

A: Workers can protect their rights in employment relations by asking for written evidence or official documents regarding employment, even in a simple format. They should also educate themselves about rights and obligations in employment and take more proactive steps to ensure their rights.

Q: What is the role of the Industrial Relations Court in resolving disputes related to oral work agreements?

A: The Industrial Relations Court plays a crucial role in resolving disputes related to oral work agreements. The court can provide a platform for employers and workers to resolve their disputes and provide a fair and just decision.

Q: What are the recommendations for employers and workers in relation to oral work agreements?

A: Employers and workers should work together to create a more harmonious and productive work environment. Employers should remain committed to making a letter of appointment even though there is no legal obligation that violates the rules. Workers should also ask for written evidence or official documents regarding employment, even in a simple format.

Q: What are the benefits of written work agreements?

A: Written work agreements provide long-term benefits for both employers and workers. They provide legal certainty in the work agreement, which is essential in creating a harmonious and productive work environment.

Q: How can employers and workers work together to create a more harmonious and productive work environment?

A: Employers and workers can work together to create a more harmonious and productive work environment by communicating effectively, being transparent, and respecting each other's rights and obligations.

Q: What are the implications of not having a written work agreement on employment relations?

A: Not having a written work agreement can lead to problems in employment relations, including disputes and conflicts between employers and workers. It can also result in a lack of certainty in the employment relationship, which can lead to problems in the future.

Q: What are the recommendations for future research on oral work agreements?

A: Future research should focus on the implementation of written work agreements in various industries and the impact on employment relations. Additionally, research should be conducted on the effectiveness of the Industrial Relations Court's decision on Medan State Income Number: 41/G/2009/PHI.Mdn in resolving disputes related to oral work agreements.

Q: What are the key takeaways from this article on oral work agreements?

A: The key takeaways from this article on oral work agreements are:

Oral work agreements can provide flexibility and convenience for both employers and workers.
However, they can also lead to problems in employment relations, including disputes and conflicts between employers and workers.
Written evidence is essential in employment relations as it provides proof of the employment agreement and the terms and conditions of employment.
Employers and workers should work together to create a more harmonious and productive work environment.
Written work agreements provide long-term benefits for both employers and workers.