Skip to content


As a matter of fact, there are restrictions against industrial relations disputes. Not all things can be put under disputes. For example, mutation is the rights of the company. Employees who have an objection and are absent from their duty for more than 5 days may be considered to have resigned.

Do not let the company get trapped by the employee’s objection related to a mutation If the problem is attempted to be solved through deliberation involving even a third party (tripartite), it will be judged as an industrial relations dispute. Furthermore, that matter has potentially become a dispute that must be resolved through industrial relations court, althoughthis is not included in the 4 types of industrial disputes that should be resolved in court.

Industrial Dispute
Law No. 2 of 2004 concerning Industrial Relations Disputes Settlement (“UU PHI”), in Article 1 paragraph 1 provides a definition of industrial disputes as follows:

An Industrial Relations Dispute is a difference of opinion resulting in a dispute between employers or an association of employers with workers/labourers or trade unions due to a disagreement on rights, conflicting interests, a dispute over termination of employment, or a dispute among trade unions within one company;

Based on these definitions, it can be determined several types of disputes that can be categorized as an industrial dispute. Based on UU PHI , each of the dispute has different stages of completion.

The following are types of disputes in industrial relations:

  1. Disputes on Rights
    A dispute arising due to non-fulfillment of rights, because of differences in the application and interpretation of the provisions of legislation, agreements, company regulations or cooperative agreements.
  2. Conflict of Interest
    A dispute arising in the employment relationship because of the lack of conformity of opinion regarding the manufacture and / or changes in the terms of employment applied in labor agreements, company regulations or collective agreements.
  3. Termination of Employment Disputes
    A dispute arising from the absence of opinion regarding the appropriateness of termination by either party.
  4. Dispute Between Workers Union / Labour In One Company
    A dispute between workers/labourers or trade unions but limited in just one company,  due to lack of understanding regarding the conformity of the membership, the implementation of the rights and obligations of a trade union.

When the industrial relations dispute happens (applies to all types of disputes), the first step that must be done is to settle nternally through a deliberation mechanism as stated in UU PHI called a bipartite. Bipartite is a negotiations between workers/labourers or trade unions with employers to resolve an industrial dispute.

In bipartite, the third party does not get involved. Meanwhile the third party is the Government represented by the Misnistry of Manpower and Transmigration.So, the bipartite phase does not rule out the possibility for both the employer and / or employee to be represented by legal counsel that can help the negotiations and also serve as a facilitator between the parties that have a dispute.

UU PHI already has determined that the maximum bipartite negotiations must be completed within 30 working days since the talks begins. When the bipartite negotiations come to an agreemen, the parties shall make a Collective Agreement and registered it at the Industrial Relations Court secretariat. However, if the bipartite negotiations failed to achieve an agreement, a further resolution mechanisms, as stipulated in the UU PHI can be done.

BP Lawyers can help you
We can assist you in providing the best solution for the problem or industrial disputes in your company. You can contact us at:
Phone: +62821-1234-1235

Leave a Comment