Employment Dispute

A Comprehensive & Measurable Resolution Through Mediation or Industrial Relations Court

Employment Dispute Resolution Concept

Resolving employment disputes happens between a company & its employees, usually facilitated through bipartite or tripartite mediation by the local labor department or through the Industrial Relations Court (Pengadilan Hubungan Industrial - PHI).

Employment disputes can arise from:

Mismatches in the interpretation or implementation of work agreements
Violation of worker's rights
Termination of employment
Disagreements over wages, or
Other issues related to working conditions.

In Indonesia, employment dispute resolution is governed by law & there are specialized institutions for dealing with this, such as the Industrial Relations Settlement Institution (Lembaga Penyelesaian Hubungan Industrial - LPHI) or the Industrial Relations Court (Pengadilan Hubungan Industrial - PHI).

BIPARTITE / TRIPARTITE MEDIATION

Employment dispute resolution through bipartite or tripartite mediation can be explained as follows:

1. Bipartite

Involved Parties - Just the company (employer) & employees (workers/labor or their representatives).
Objective - Find a solution to the ongoing dispute through direct discussions & negotiations.
Mediation - If it's difficult to find a solution, both parties can choose a neutral third party as a mediator to help them reach an agreement without having the authority to make decisions.

2. Tripartite

Involved Parties - Three parties, the company (employer), employees (workers/labor or their representatives) & the government or another institution representing the public interest.
Objective - A more comprehensive solution is needed because the dispute has a broader impact on society.
Mediation - Similar to bipartite mediation, the mediator in tripartite mediation assists all three parties in reaching an agreement. However, in a tripartite context, mediation can become more complicated because it involves multiple interests.

If no agreement is reached through bipartite or tripartite mediation at the local labor department, the dispute can be taken to the Industrial Relations Court.

COURT PROCEEDINGS

Resolving employment disputes through the Industrial Relations Court can be broken down into the following steps.

Filing a Lawsuit
The aggrieved party (either the worker/laborer or the employer) files a lawsuit with the Industrial Relations Court. The lawsuit must be accompanied by supporting evidence & underlying reasons.
First Hearing
Once the lawsuit is accepted, the court will set the schedule for the first hearing. At this session, the Judge will review the completeness of the files & ask for clarification regarding the submitted claims.
Examination
Subsequent hearings will involve a series of examinations where the disputing parties provide statements, testimonies & prove their claims. At this stage, both sides have the opportunity to present evidence, express opinions & bring in witnesses.
Rejoinder & Surrejoinder
After the examination, the plaintiff provides a rejoinder (response to the defendant's answer) & the defendant offers a surrejoinder (response to the plaintiff's rejoinder).
Judgment
Once all the examination processes are completed, the Judge will deliver a verdict. This decision is final & binding. However, if either party feels wronged by the verdict, they have the right to pursue other legal remedies, like appealing to the High Court for Industrial Relations or filing a cassation with the Supreme Court.
Execution
If the court's decision becomes legally binding, then it can be executed. The execution process is overseen by the court's bailiff.The Industrial Relations Court is specially designed to resolve disputes quickly & accurately. The court has the advantage of process fast speed & Judges who are experts in labor issues.The dispute resolution process through the Industrial Relations Court is different from mediation because its decisions are binding & enforceable.

Condition for Choosing Bipartite/Tripartite Mediation or Industrial Relations Court for Employment Dispute Resolution

When choosing a method for resolving employment disputes, whether through assisted negotiation (bipartite or tripartite mediation) or going through the Industrial Relations Court, there are several conditions or considerations that underlie why each decision is made.

Bipartite or Tripartite Mediation

Desire to Maintain Relationships
If both parties are aiming for a win-win solution & want to preserve a good long-term relationship
Low to Moderate Conflict Levels
Mediation is more suitable for disputes that are on the lower to moderate end of the scale, where both sides are still willing to communicate & work together for a resolution.
Privacy Concerns
If the issue or cause of the dispute is considered sensitive & both parties desire confidentiality.
Pre-Existing Agreements
Employment agreements may have mediation laid out as the initial step for dispute resolution.
Cost and Time-Efficiency
The focus of mediation is to achieve a quicker & less expensive resolution compared to court proceedings.
Control Over Outcomes
Both parties seek an active role in shaping & controlling the outcome. This contrasts with a court setting, where the decision is made by a Judge.
Impacting Third Parties
In cases where the dispute affects a third party (like other worker groups, communities, or entire industrial sectors), tripartite mediation involving representatives from that third party becomes the right call.

Industrial Relations Court

Failure of Mediation
If attempts at bipartite or tripartite mediation have been made but didn't work out, the dispute can proceed to the Industrial Relations Court.
Serious Conflict Levels
For major cases, such as wrongful termination or violation of workers' fundamental rights.
Seeking Public Attention
There may be situations where one side wants to rally public support or raise public awareness about a particular issue.
Pre-Existing Agreements
Employment agreements might specify that disputes will be settled through the Industrial Relations Court.
Focus on Justice/Legal Certainty
Though court action takes longer & costs more than mediation, in some cases, it's considered an investment for achieving justice or legal certainty.
Binding Decisions
The sought-after decision is final & legally binding
Third-Party Demands
In certain cases, a third party (like a labor union) demands that the dispute be settled through the court.

Timeline for Resolving Employment Disputes

Through The Bipartite & Tripartite Mediation Process

Bipartite Mediation - 30 Business Days
If both parties haven't reached an agreement within this timeframe, they can choose to extend the mediation or take other legal steps, like moving on to tripartite mediation or going to the Industrial Relations Court.
Tripartite Mediation - 30 Business Days
If bipartite mediation fails to resolve the dispute, the case can be escalated to tripartite mediation involving a third party like a relevant government agency. This typically has a 30-business-day timeframe & can be extended if both parties agree.

Through Industrial Relations Court

Based on the Law No. 2 of 2004 concerning the Settlement of Industrial Relations Disputes, the following timeframes apply:

Preliminary Examination - up to 21 days from the time the lawsuit is received by the court.
Mediation by Judge - 30 days, if mediation fails, the trial will proceed.
Trial - a maximum of 50 days from the completion of the preliminary examination.
Verdict - after the trial concludes, the Judge has 7 days to issue a decision.
Appeal - if either party is dissatisfied, they can file an appeal to the Supreme Court within 7 days from when the verdict is issued. The Supreme Court has 50 days to review & make a decision on the appeal.

So, in an ideal scenario without any obstacles, the process in the Industrial Relations Court could take around 3 months (or slightly longer if there's an appeal).

The Role of CHP Law Firm as an Employment Attorney

The role of CHP Law Firm as an employment dispute attorney includes:

Providing initial consultation to clients, understanding the core issues of the dispute & offering preliminary insights on the prospects and steps to be taken.
Reviewing employment contracts & related documents to ensure the rights & obligations of each party are clear.
Attempting to resolve the dispute through mediation.
Drafting & filing lawsuits in the employment court.
Representing the client throughout the court proceedings, presenting evidence, calling witnesses & advocating for the client's rights & interests.
Providing legal advice to the client regarding case developments, strategies & potential outcomes while the process is ongoing.
Executing the court's verdict after winning the case.
Filing an appeal to a higher authority if the client is not satisfied with the ruling.

The primary goal of CHP is to ensure that the client's rights are protected & that the legal process proceeds fairly and in accordance with applicable law.

Employment Dispute