Reasons for The Company Not to Hire Permanent Employees

BizGuru.me – The status of the PKWT employee or the contract can only be made for a maximum of 3 years. Then, after this contract, employees will change their status to become permanent employees. However, the question is whether contract employees have to wait 3 years before becoming permanent employees?

In fact, after a 1 year contract, contract employees may be appointed permanent employees. However, it depends on the decision of each company.

There are several reasons why employees are not immediately appointed on permanent employees who need to be known and understood by the Company’s HRD team. So that they can provide information and socialization to all employees so that misunderstandings do not occur.

The reasons for contract employees are not immediately appointed by permanent employees of the Company include the following.

There is a management problem

One of the reasons why contract employees are not immediately appointed are due to mismanagement in a business. When the DRH team or the company’s leaders squeezes with appointments, it can be determined that the company has a serious problem. Perhaps at that time that the condition of society was not good, for example, it felt a loss and had to cover it immediately.

Dissatisfaction of employee performance monitoring

Another reason why contract employees are not immediately appointed is that the company’s leaders are not satisfied with the work of the employee’s work. For example, when the employee concerned receives a task and must be completed in a certain period, but he can not complete the task on time. Then, the company’s leadership will consider that the employee is less or even incompetent in his work. A sign that leadership is dissatisfied with the performance of contract employees must be cold and seem indifferent. If this happens, the HRD team can inform the employee concerned to immediately carry out self-introspection. In addition, the DRH team is also responsible for notifying any gap that employees have been corrected immediately.

Do not follow the rules of government

It turns out that many companies do not follow government regulations regarding employment contracts. Although this happens, the company can be subject to criminal sanctions. An example is when a contract employee has been given 3 years, then extended for several years. Although the predominant rule is that a contract of employment can only be done for up to 3 years. If this problem occurs, the HRD team can discuss with the company’s leaders to find the best solution. In order for the company to immediately modify the rules that do not comply with the applicable law and avoid legal sanctions.

Also Read: 5 Important Things on The Minimum Wage, You Must Understand!

PKWT turns into PKWTT

• The HRD team also has the responsibility to provide information on the status of employees.  Here are some of the provisions likely to cause PKWT modification on PKWTT
• The PKWT agreement is carried out orally by society.
• PKWT is not used for a particular company.
• PKWT is used for permanent work.
• The PKWT agreement has been extended for more than twice.
• The company intends to extend the 7 days PKWT before notifying the intent in writing to the employee concerned.
• The renewal of the PKWT is carried out before the grace period, which is 30 days after the end of the former work agreement.
• The renewal of the PKWT agreement is made more than once.

Importance of the letter of appointment of employees

For employees who have been appointed on permanent employees, they must receive a letter of appointment of employees. The letter of appointment of employees is a corporate decree, established and signed by the Board of Directors or its agents, to appoint employees to become permanent employees of the Company.