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4. Results: Answers
Labour and Employment
6.
Employment tribunals
6.1
How are employment-related complaints dealt with?
Indonesia

Answer ... Under the Industrial Dispute Law, private arbitration is an alternative method of dispute settlement for disputes between unions and employers over work conditions, or between labour unions in the same company.

An employee involved in a voluntary resignation or termination due to a criminal proceeding can file a claim with the labour court within one year of the date of termination. Article 96 of the Labour Law originally stipulated a two-year statute of limitations to bring a claim for payment arising from the employment relationship, but the Constitutional Court nullified this two-year limit in 2012, pursuant to its Decision 100/PUU-X/2012. In practice, the timeframe for bringing an employment claim is similar to that for civil claims, whereby Article 1967 of the Indonesian Civil Code stipulates that a potential claim expires after 30 years.

Employers can either:

  • suspend employees on full salary and go through the mandatory non-binding mediation process with the Ministry of Manpower and Transmigration, followed by a labour court trial to obtain approval of the termination; or
  • successfully negotiate and settle a separation benefits package with employees and execute a mutual termination agreement – the only cost-effective alternative.

There is no restriction under the law on an employee waiving his or her contractual right to potential employment claims. Any written agreement that includes such a waiver will not form a basis for the cancellation of the agreement or for the agreement to be considered null and void. Although this type of waiver should be enforceable, in practice, the labour court will most likely still hear the employee’s claim, even though he or she has contractually waived the right to make such an employment claim.

Employment-related complaints are heard by a panel of three judges at the Industrial Relations Court, with one of the judges acting as the head of the panel.

For more information about this answer please contact: Fahrul S. Yusuf from SSEK Indonesian Legal Consultants
6.2
What are the procedures and timeframes for employment-related tribunals actions?
Indonesia

Answer ... Please see question 6.1.

For more information about this answer please contact: Fahrul S. Yusuf from SSEK Indonesian Legal Consultants
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Topic
Labour and Employment