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This research aims to systematically analyze the causes, impacts, and strategies for addressing economic recessions through the Systematic Literature Review (SLR) method. Using the PRISMA guidelines, this study identifies and synthesizes scientific literature from 2020 to 2025 that discusses economic recessions in both global and national contexts. The study results show that the economic recession is triggered by various factors such as high inflation, energy crises, global pandemics, and geopolitical tensions. The impact extends to the labor sector, the business world, and the social conditions of society, particularly on MSMEs and vulnerable groups. Effective strategies for facing a recession include coordinated fiscal and monetary policies, strengthening the domestic economy, as well as technology-based innovation and multisector collaboration. These findings provide a conceptual foundation for formulating adaptive economic policies in facing future economic crises.

This study aims to examine the legal protection of workers' rights who are terminated due to economic recession and to analyze the use of economic recession as a valid reason for termination of employment. This is a normative legal research that uses a statutory approach and a conceptual approach. The research relies on primary legal materials such as the 1945 Constitution of the Republic of Indonesia, the Civil Code, Law Number 13 of 2003 concerning Manpower, and Law Number 11 of 2020 concerning Job Creation, as well as secondary legal materials including books, journals, and scholarly articles. The results of the research show that: 1) an economic recession can be considered a valid reason for termination of employment within a company, as it may fall under the category of force majeure, provided that the company still respects the employment agreement and principles of fairness; and 2) legal protection for workers who are laid off due to an economic recession is divided into two forms: internal legal protection (based on the contents of the employment agreement) and external legal protection (based on statutory provisions). In this regard, workers still have the right to receive severance pay, long service pay, and compensation for entitlements.