Business & work
Employment and dismissal disputes in Indonesia: bipartite talks, mediation and the Industrial Relations Court
The official route for employment and dismissal disputes under Law 2/2004: 30-day bipartite talks, mediation, the PHI court, deadlines, costs and legal aid.
English edition. Official forms and source documents may be in Indonesian.
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How do I resolve an employment or dismissal dispute, from bipartite talks to the Industrial Relations Court?
An employment dispute, including one about dismissal, must first be negotiated in bipartite talks between the worker and the employer for no more than 30 working days. If that fails, either party registers it with the regency or city manpower office for mediation or conciliation (or arbitration for certain dispute types), and if the written recommendation is rejected the case can go to the Industrial Relations Court (PHI). There is no court fee at the PHI for claims worth less than Rp150,000,000.
See 6 official references ↓Read Law 2/2004 on PPHI on JDIH BPK ↗peraturan.bpk.go.id
Guide contents
What to have ready
- Your employment contract, appointment letter or fixed-term (PKWT) contract.
- Payslips and proof of wage payments for the last few months.
- The dismissal notice, warning letters or other letters from your employer.
- Minutes (risalah, the official record) of each bipartite meeting signed by both sides, or proof that the employer refused to negotiate.
- Your company regulations or collective labour agreement (PKB), if there is one.
- Your trade union membership card, if you want the union to support you.
How to resolve an employment dispute
Respond to a dismissal notice in writing
Under PP 35/2021 the employer must give a written dismissal notice no later than 14 working days before the dismissal (7 working days during probation). If you object, write a letter of refusal with your reasons within 7 working days of receiving the notice.
Hold bipartite talks
Bipartite talks are direct negotiations between the worker (or their union) and the employer. They must be completed within 30 working days of starting. Minutes signed by both sides are made of every meeting. If you agree, draw up a Joint Agreement and register it with the PHI at the district court.
Register the dispute with the manpower office
If the talks fail, including when one side refuses to negotiate, either or both parties register the dispute with the regency or city manpower office, attaching proof of the bipartite attempt. The office offers conciliation or arbitration; if neither is chosen within 7 working days, the case goes to a mediator.
Take part in mediation or conciliation
The mediator at the manpower office must finish within 30 working days. Conciliation is only for interest, dismissal or inter-union disputes, also within 30 working days. Arbitration is only for interest or inter-union disputes, not for dismissal or rights disputes.
Answer the written recommendation
If there is no agreement, the mediator or conciliator issues a written recommendation (anjuran) within 10 working days of the first session. Each party replies accepting or rejecting it within 10 working days of receiving it. A party that does not reply is treated as rejecting it.
File a claim at the Industrial Relations Court
If the recommendation is rejected, either party can sue at the PHI at the district court covering the place where the worker works. The claim must attach the mediation or conciliation minutes. A worker’s claim about a dismissal must be filed within 1 year of mediation or conciliation failing.
Follow the judgment, appeal and enforcement
The PHI must decide within 50 working days of the first hearing. In rights and dismissal disputes, an appeal (kasasi) to the Supreme Court can be filed within 14 working days; in interest and inter-union disputes the PHI judgment is final. A registered Joint Agreement that is not honoured can be enforced through the PHI.
Costs of mediation, the PHI and legal aid
There is no fee for proceedings at the Industrial Relations Court, including enforcement, for claims worth less than Rp150,000,000 (Law 2/2004, Article 58). Conciliators’ fees are paid by the state (Article 26). For arbitration, the arbitration costs and arbitrator’s fee are set in the agreement appointing the arbitrator. Legal aid from an accredited legal aid provider under Law 16/2011 is free for people on low incomes who qualify as poor.
| Stage | Who handles it | Time limit | Legal basis |
|---|---|---|---|
| Bipartite talks | Worker/union and employer | No more than 30 working days from the start of talks | Law 2/2004, Article 3 |
| Registration | Regency or city manpower office | The parties choose conciliation or arbitration within 7 working days; otherwise the case goes to a mediator | Law 2/2004, Article 4 |
| Mediation | Mediator at the regency or city manpower office | No more than 30 working days from referral | Law 2/2004, Articles 8 and 15 |
| Conciliation | Registered conciliator chosen by the parties | No more than 30 working days | Law 2/2004, Articles 17 and 25 |
| Arbitration (not for dismissal) | Arbitrator appointed by the Minister | No more than 30 working days, extendable once by 14 working days | Law 2/2004, Articles 29 and 40 |
| Written recommendation | Mediator or conciliator | Issued within 10 working days of the first session; answered within 10 working days | Law 2/2004, Articles 13 and 23 |
| PHI claim | Industrial Relations Court at the district court | A worker’s dismissal claim within 1 year of mediation/conciliation failing; judgment within 50 working days | Law 2/2004, Article 82 (Constitutional Court Decision 132/PUU-XXIII/2025) and Article 103 |
| Appeal (kasasi) | Supreme Court (rights and dismissal disputes only) | Filed within 14 working days; decided within 30 working days | Law 2/2004, Articles 110 and 115 |
Law 2/2004 does not set any fee for mediation at the manpower office; ask the local office directly and do not pay intermediaries. Private lawyers are not covered and their fees are agreed separately.
Four types of dispute and their routes
Law 2/2004 on Industrial Relations Dispute Settlement (PPHI) recognises four types of dispute: rights disputes (an entitlement not met, such as wages or THR), interest disputes (about making or changing terms of work), dismissal disputes, and disputes between unions within one company.
All types must go through bipartite talks first. After that, mediation can be used for all types, conciliation for interest, dismissal and inter-union disputes, and arbitration only for interest and inter-union disputes. If a rights or interest dispute arises together with a dismissal dispute, the PHI must decide the rights or interest dispute first.
As of 11 October 2026, Law 2/2004 was still listed as in force on JDIH BPK. The Labour Protection Law approved by the DPR on 6 October 2026 had not yet been promulgated, so its effect on this procedure cannot yet be confirmed.
How dismissal under PP 35/2021 fits into this route
PP 35/2021 requires employers, workers, unions and the government to try to prevent dismissal. If it cannot be avoided, the employer gives notice of the intention and reasons in a written notice no later than 14 working days before the dismissal. If the worker does not object, the employer reports the dismissal to Kemnaker and/or the manpower office.
If the worker objects, they write a letter of refusal with reasons within 7 working days of receiving the notice. The disagreement is then settled through bipartite talks, followed by the PPHI route above.
Constitutional Court Decision 168/PUU-XXI/2023 confirms that bipartite talks are held by deliberation to reach consensus. If they fail, a dismissal can only take place after a final and binding decision of a dispute settlement body. During the process, the Court read suspension on full pay as lasting until the PPHI process is final and binding.
Minutes, Joint Agreements and recommendations
Bipartite minutes must at least include the parties’ full names and addresses, the date and place of the talks, the issue in dispute, each party’s view, the conclusion or outcome, and the date and signatures. Keep a copy because you need the minutes to register the dispute.
If agreement is reached in bipartite talks, mediation or conciliation, a Joint Agreement (Perjanjian Bersama, PB) is drawn up. It is binding, must be carried out and must be registered with the PHI at the district court where it was made. If a registered PB is not honoured, the injured party can ask the PHI for an enforcement order.
Under Constitutional Court Decision 68/PUU-XIII/2015, the mediator’s or conciliator’s written recommendation takes the form of settlement minutes. These mediation or conciliation minutes must be attached to a PHI claim; without them the judge returns the claim.
When to contact a union or legal aid
A trade union can represent its members in bipartite talks and can act as their legal representative at the PHI (Law 2/2004, Article 87). Contact your union early, before signing anything.
If you cannot afford a lawyer, Law 16/2011 on Legal Aid provides free legal aid for poor people or groups, in civil, criminal and administrative cases, both in and out of court. You apply in writing (or orally if you cannot write) to an accredited legal aid provider, with your identity, a short description of the problem, the case documents and a certificate of low income (surat keterangan miskin) from the village or urban ward head.
The legal aid provider must reply within 3 working days of a complete application and may not ask you for payment. Find the nearest accredited legal aid organisation (OBH) through the National Legal Development Agency (BPHN) portal.
Things to check carefully
- Going straight to the PHI without bipartite talks and mediation or conciliation. A claim without mediation or conciliation minutes will be returned by the judge.
- Not making, or not keeping, bipartite minutes signed by both sides.
- Not replying to a recommendation within 10 working days. A party that stays silent is treated as rejecting it.
- Missing the 1-year limit for suing over a dismissal after mediation or conciliation fails.
- Signing a Joint Agreement but not registering it with the PHI, which makes enforcement difficult.
- Paying an intermediary who promises a quick result. Go directly to the manpower office or through your union and official legal aid providers.
Frequently asked questions
How long do bipartite talks last?
No more than 30 working days from the start of talks (Law 2/2004, Article 3). If within that time one side refuses to negotiate or no agreement is reached, the talks are treated as failed and the dispute can be registered with the manpower office.
Where do I register a dispute after bipartite talks fail?
With your local regency or city manpower office, attaching proof of the bipartite attempt such as the meeting minutes. If proof is missing, the file is returned to be completed within 7 working days.
What is a recommendation (anjuran) and must I follow it?
No, you do not have to. An anjuran is a written settlement proposal from the mediator or conciliator. Each party accepts or rejects it within 10 working days. If accepted, a Joint Agreement is made; if rejected, the case can go to the PHI.
How much does it cost to sue at the Industrial Relations Court?
It is free for claims worth less than Rp150,000,000, including enforcement (Law 2/2004, Article 58). For claims of Rp150,000,000 or more, court costs follow the court’s rules.
What is the deadline for challenging a dismissal in court?
One year from the date mediation or conciliation fails to reach agreement. This is how Article 82 of Law 2/2004 must be read under Constitutional Court Decision 132/PUU-XXIII/2025, as recorded on JDIH BPK.
Where is the Industrial Relations Court?
The PHI sits at the district court in each provincial capital, and in some industrial regencies and cities. You file at the PHI whose jurisdiction covers the place where the worker works.
Can my employer dismiss me while the dispute is ongoing?
If bipartite talks fail, under Constitutional Court Decision 168/PUU-XXI/2023 a dismissal can only take place after a final and binding decision of a dispute settlement body. During the process both sides keep meeting their obligations, and any suspension must be on full pay until the process ends.
Can I get a free lawyer?
Yes, if you qualify as poor under Law 16/2011. Apply to an accredited legal aid provider with a certificate of low income from your village or ward head. Union members can also be represented by their union at the PHI.
Sources and review
Editorial review of public information: . This is not a review by an agency officer or a professional adviser. Reviewed by Kaiser Khan, publisher of Panduan Warga. Official document titles are retained below.
- JDIH BPK: UU Nomor 2 Tahun 2004 tentang Penyelesaian Perselisihan Hubungan Industrial (dengan putusan uji materi) ↗peraturan.bpk.go.id · Accessed 11 October 2026
- JDIH BPK: PP Nomor 35 Tahun 2021 (PKWT, alih daya, waktu kerja, PHK) ↗peraturan.bpk.go.id · Accessed 11 October 2026
- MK: Putusan Nomor 168/PUU-XXI/2023 (31 Oktober 2024) ↗www.mkri.id · Accessed 11 October 2026
- JDIH BPK: UU Nomor 16 Tahun 2011 tentang Bantuan Hukum ↗peraturan.bpk.go.id · Accessed 11 October 2026
- BPHN: Portal Informasi Bantuan Hukum, cari OBH terdekat ↗bantuanhukum.bphn.go.id · Accessed 11 October 2026
- Kemnaker: Lapor Menaker ↗lapormenaker.kemnaker.go.id · Accessed 11 October 2026
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