Abstract

Bankruptcy has effect for all creditors, labor is no exception. Settlement of property the debtor to the creditor in the event of the debtor is declared bankrupt will depend largely on the position of the creditors. The position of labor creditor's preferred placed as having special privileges, which will get the first in bankruptcy. However, the property the debtor in bankruptcy is sometimes not enough to pay off all his debts bills including salaries and severance to labor as a preferred creditor. Therefore the author will examine these issues by formulating two problems namely: How the completion of labor rights in the process of bankruptcy according to law No. 13 of 2003 On Labor and How do the views of Islamic law on the settlement of the labor rights in the process of bankruptcy according to law No. 13 of 2003 On Labor. The conclusions of this research in general law No. 13 of 2003 On Labor is in compliance because Islamic law already gives privileges in the fulfillment of their rights. but still need to revise several sections to make the provisions of the law in the Law more robust in protecting labor rights in the process of bankruptcy and the Government should establish a policy to provide concrete guarantees and protection of the rights of labor in the event of bankruptcy.

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