T Termination of employment is a form of industrial relations dispute that frequently triggers legal conflicts and significantly impacts workers lives, particularly within outsourcing schemes involving tripartite employment relationships. this study examines whether the resolution of the dispute regarding nizar\\\'s termination—initiated by pt. karya bisnis bersama on the grounds of efficiency within an outsourcing arrangement—complied with statutory requirements for lawful termination. it also evaluates whether the judges reasoning in decision number 1/pdt.sus-phi/2024/pn.pal aligned with applicable legal provisions for resolving unilateral termination disputes. the study employs a normative legal research method with a descriptive-analytical approach, utilizing secondary data derived from primary and secondary legal sources. the findings indicate that pt. karya bisnis bersama’s actions suffered from both formal and material legal flaws; specifically, a valid bipartite negotiation did not take place, and the failure to register the fixed-term employment agreement (pkwt) resulted in its automatic conversion into an indefinite-term employment agreement (pkwtt) by operation of law. furthermore, the panel of judges reasoning was found to be flawed due to a failure to analyze the validity of pre-litigation procedures, an overly narrow interpretation of the \\\"efficiency\\\" concept within outsourcing relationships, and the absence of consideration regarding the possibility of reinstatement, as permitted under article 40 of government regulation (pp) no. 35/2021. these shortcomings reflect a lack of adequate legal reasoning—a condition known in procedural law doctrine as onvoldoende gemotiveerd.