LEGAL ANALYSIS OF CORPORATE LIABILITY FOT PAYROLL FRAUD INVOLVING GHOST EMPLOYEES

Abstract

This study aims to analyze corporate legal liability in cases of payroll fraud involving ghost employees. This phenomenon represents a form of internal corporate crime that exploits weaknesses in internal control systems, resulting in financial losses and reputational damage to the corporation. The research employs a normative legal method with statutory and conceptual approaches, analyzing relevant primary and secondary legal materials. The findings indicate that corporations, as legal subjects, can be held criminally liable under the latest Criminal Code (KUHP) and Anti-Corruption Law, particularly when there is involvement of corporate management or negligence in internal control systems. The application of liability theories such as vicarious liability, identification theory, aggregation theory, and organization model theory strengthens the basis for attributing criminal responsibility to corporations. In addition to criminal sanctions, including fines, revocation of business licenses, and compensation obligations, such practices also lead to a decline in public trust, investor confidence, and business partnerships. Therefore, strengthening internal control systems and implementing Good Corporate Governance principles are essential to prevent payroll fraud and enhance corporate accountability.