Can Employees on Fixed-Term Contracts Become Permanent Employees Before Their Contracts Expire?

A worker employed under a fixed-term employment agreement (PKWT) cannot be converted to a permanent employment agreement (PKWTT) in the middle of an unexpired contract term. PKWT and PKWTT are different types of employment agreements, and the worker remains bound by the term agreed with the employer.

This is governed by Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation into Law. Article 61 provides that an employment agreement ends, among other circumstances, when its term expires.

Therefore, an employer wishing to convert a worker from PKWT to PKWTT may do so after the previously agreed PKWT period has ended.