LEGAL ANALYSIS OF DISMISSAL DIRECTOR WHOM APPOINTED FROM EMPLOYEE POSITION AND ITS LEGAL RELATION REVIEWED BY VERDICT NO. 526 K/Pdt.Sus-PHI/2015

Abstract

A company could appoint its employee become a director. However, the appointment raises problem at the end of the term of office of a Director, since there is an unresolved rights upon the employee. Therefore, a director demands the normative rights of employee when he is no longer employed by the Company. This thesis uses juridical normative method, problem analyzes based on the study of theories, principles and refers to the applicable legislations in Indonesia. This thesis is a case study on verdict No. 526 K/Pdt.Sus-PHI/2015. This thesis analyzes the suitability of the verdict with the provisions of legislation, the theories and principles that apply. As for that, the results of the study state that the legal standing between Directors and Employees is different. The Director is absolutely as a company organ, has executive functions upon daily management within the company. Director cannot be considered to have the same legal standing as employee. Director and employee has different duties, authorities, rights and obligations. Therefore, before the company wants to appoint an employee to become a Director, the company shall to have a termination of employment first. So there would not be a dualism of legal relations upon the related person with the company. As well as not causing misunderstanding regarding the rights of the related person when he is no longer employed by the company.