Contract of employment and also termination often time leads to some issue, employer often grants their employee an unreasonable entitlements and it is also very common for employee to request an entitlements that exceeds the provision under the law. This matter could be seen in the object of this research study. Specifically in the verdict number 166/PHI.G/2012PN.JKT. between PT MAKALOT as the company who performed contract employment toward KHOMISIAH as employee. Normative approach method will be used in this thesis, to the study of literature to read, interpret, books study, papers, legislation related to this title later in the analysis and set forth in writing. Contract of employment occurs due to various reason, ranging from employee, employer, law, including courts. The procedures of employment contract and termination is regulated under the law No.13 Year 2003 on Employment, while the dispute settlement regarding industrial relations such as termination of employment are regulated under the law No. 2 year 2004 on Industrial Employment Dispute Settlement. Contract of employment are employment agreement specified time (PKWT) but the procedure is like employment agreement for an unspecified time (PKWTT) and also effect to termination is depend to the contract which one is more compatible for employee in PT. Makalot for sewing section.