The Role of Labor Law on Business Sustainability and Workers' Welfare in Indonesia

Authors

  • Siti Mufidatul Azizah Universitas Islam Negeri Syekh Wasil Kediri
  • Chofifah Indah Parawansyah Universitas Islam Negeri Syekh Wasil Kediri
  • Fitrotul Bita Aulia Putri Universitas Islam Negeri Syekh Wasil Kediri
  • Reviby Adam Nazalla Dhias Universitas Islam Negeri Syekh Wasil Kediri
  • Arif Zunaidi Universitas Islam Negeri Syekh Wasil Kediri

DOI:

https://doi.org/10.30651/jms.v10i3.26569

Abstract

This research discusses the Role of Labor Law on Business Sustainability and Workers' Welfare in Indonesia. In the context of economic growth and technological development, labor law serves as a tool to maintain a balance between business sustainability and the protection of workers' rights. This research uses a literature study method with a content analysis approach to examine various labor regulations such as Law No. 13 of 2003, the Job Creation Law, and the Workers' Welfare Law. Year 2003, the Job Creation Law, and the BPJS Law. The results show that compliance with labor law has a positive impact on operational stability, employee loyalty, and company competitiveness. However, implementation challenges such as lack of supervision, unlawful employment contracts, and low legal literacy of workers are still an obstacle. Therefore, synergy between the government, companies, and workers is needed to create a healthy and productive work environment.

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Published

2025-06-16

How to Cite

Siti Mufidatul Azizah, Chofifah Indah Parawansyah, Fitrotul Bita Aulia Putri, Reviby Adam Nazalla Dhias, & Arif Zunaidi. (2025). The Role of Labor Law on Business Sustainability and Workers’ Welfare in Indonesia. Jurnal Masharif Al-Syariah: Jurnal Ekonomi Dan Perbankan Syariah, 10(3). https://doi.org/10.30651/jms.v10i3.26569

Issue

Vol. 10 No. 3 (2025)

Section

Artikel

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