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Labour dispute mediation in Indonesia: bipartite talks, the labour office and court

Written by KarirAman editorial team Approved by Kaiser Khan (editor), Updated

Unpaid rights or unfair dismissal? Use bipartite talks, register the dispute with the labour office (Disnaker) for mediation, then go to the PHI court.

Legal status: the Labour Protection Law was approved by the DPR and the Government on 6 October 2026 but has not been promulgated and its text is not public. Until it takes effect, the rules on this page apply.

Dewan Perwakilan Rakyat RI (emedia); Kementerian Ketenagakerjaan RI

Summary

  • Industrial disputes must first be tried through bipartite negotiation, for at most 30 working days (Law 2/2004 Article 3).
  • If bipartite talks fail, the dispute is registered with the local labour office with proof of the talks (Law 2/2004 Article 4).
  • A mediator at the district or city labour office must finish within 30 working days (Law 2/2004 Articles 8 and 15).
  • If mediation brings no agreement, either side can file a claim with the Industrial Relations Court (Law 2/2004 Article 5).
  • During a dismissal dispute, employer and worker keep their obligations until there is a final and binding decision.
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On this page
  1. Which workplace disputes go through this procedure?
  2. What is the first step if my rights are not met?
  3. How do I register a dispute with the labour office?
  4. How does mediation at the labour office work?
  5. What happens if mediation fails?
  6. Am I still paid during a dismissal dispute?
  7. How is mediation different from a complaint to a labour inspector?
  8. What if I am a domestic worker?
  9. Which documents should I prepare?

Which workplace disputes go through this procedure?

Law 2/2004 on Industrial Relations Dispute Settlement, in force since 14 January 2004, recognises four types of dispute (Article 2): rights disputes, such as unpaid wages, overtime, THR or compensation; interest disputes about making or changing working conditions; dismissal disputes; and disputes between unions in one company. The route is step by step: bipartite talks, then mediation, conciliation or arbitration, then court.

What is the first step if my rights are not met?

The first step is bipartite negotiation, direct talks between you (or your union) and the employer. Law 2/2004 Article 3 requires these talks to be tried first, aiming for consensus, and finished within 30 working days. If one side refuses to negotiate, or there is no agreement within that time, the talks are deemed to have failed. Every meeting must be minuted and signed by both sides (Article 6). Constitutional Court ruling 168/PUU-XXI/2023, ruling 19, confirms that bipartite talks on dismissal must also aim for consensus.

How do I register a dispute with the labour office?

If bipartite talks fail, one or both sides register the dispute with the local district or city labour office, attaching proof that talks took place, such as the minutes (Law 2/2004 Article 4(1)). Incomplete files are returned to be completed (paragraph 2). The office must then offer conciliation or arbitration; if the parties do not choose within 7 working days, the dispute goes to a mediator (paragraphs 3 and 4). Conciliation covers only interest, dismissal and inter-union disputes, and arbitration only interest and inter-union disputes (paragraphs 5 and 6).

How does mediation at the labour office work?

Mediation is run by a mediator at the district or city labour office (Law 2/2004 Article 8). Within 7 working days of receiving the case, the mediator studies it and holds a mediation session (Article 10). If the parties agree, they sign a joint agreement registered at the Industrial Relations Court (Article 13(1)). If not, the mediator issues a written recommendation within 10 working days of the first session, and the parties reply accepting or rejecting it within 10 working days (Article 13(2)). The mediator must finish within 30 working days (Article 15).

What happens if mediation fails?

If mediation or conciliation does not produce an agreement, either side can file a claim with the Industrial Relations Court (Law 2/2004 Article 5) at the district court covering the place where the worker works (Article 81). The claim must attach the mediation or conciliation record (Article 83). The court decides rights and dismissal disputes at first instance, and interest and inter-union disputes at first and final instance (Article 56).

Am I still paid during a dismissal dispute?

Yes. Law 13/2003 Article 157A as amended by Law 6/2023 says employer and worker keep their obligations while the dispute is being settled, and an employer that suspends a worker must keep paying wages and other usual entitlements. Constitutional Court ruling 168/PUU-XXI/2023, ruling 21, confirms this lasts until the dispute process reaches a final and binding decision. Ruling 20 adds that if bipartite talks fail, a dismissal may only happen after a final and binding decision of the dispute body.

How is mediation different from a complaint to a labour inspector?

Mediation settles a dispute between you and the employer through agreement or a recommendation. Labour inspectors check whether the employer complies with the rules, such as paying fixed-term compensation, working hours or rest; PP 35/2021 Article 60 places inspectors at the Ministry of Manpower and/or the provincial labour office. Inspections can lead to administrative sanctions for the employer (PP 35/2021 Articles 61 and 62). For unpaid wages or rights, you can use both.

What if I am a domestic worker?

Disputes involving domestic workers follow their own rules under Law 2/2026. They are first settled by discussion within 7 days of either side asking (Article 31). If that fails, a dispute between employer and worker is mediated by the head of the neighbourhood (RT/RW) where the worker works; if an agency (P3RT) is involved, a labour office mediator handles it within 7 days of the complaint. The mediator's decision on a wage dispute is final and binding (Article 32).

Which documents should I prepare?

Have your employment contract or appointment letter, payslips, attendance records or overtime lists, letters from the company (such as a dismissal letter) and signed bipartite minutes ready. If the employer refuses to negotiate, keep proof that you asked. For complaints about the labour office's own service, see the Panduan Warga guide to public-service complaints.

Not legal advice. For your own case, contact the official channels listed.

Frequently asked questions

Can I go straight to court without mediation?

No. A claim to the Industrial Relations Court must attach the record of mediation or conciliation; otherwise the judge must return the claim (Law 2/2004 Article 83(1)). Bipartite talks and mediation or conciliation must therefore come first.

Does the Industrial Relations Court charge fees?

Parties at the Industrial Relations Court pay no court fees, including enforcement fees, for claims below a value threshold set in Law 2/2004 Article 58. Claims above that threshold are subject to court fees.

Who can represent me in court?

A trade union can act as legal representative for its members at the Industrial Relations Court (Law 2/2004 Article 87). You can also ask an accredited legal aid organisation for help, which is free for those who qualify.

Who wrote and reviewed this page?

Written by KarirAman editorial team Published Updated

Prepared with AI assistance. Checked against official sources and approved for publication by Kaiser Khan (editor). Approval date: .

Sources

The facts on this page come from these sources. Dates show when we opened them.

  1. DPR Sahkan UU Pelindungan Ketenagakerjaan (emedia DPR RI, 7 Oktober 2026) Dewan Perwakilan Rakyat RI (emedia) · accessed
  2. Menaker Ungkap Poin Penting UU Pelindungan Ketenagakerjaan yang Wajib Diketahui Pekerja Kementerian Ketenagakerjaan RI · accessed
  3. Undang-Undang Nomor 2 Tahun 2004 tentang Penyelesaian Perselisihan Hubungan Industrial Kementerian Hukum RI (peraturan.go.id) · UU 2/2004 · accessed
  4. Putusan Mahkamah Konstitusi Nomor 168/PUU-XXI/2023 (pengujian UU 6/2023, klaster ketenagakerjaan) Mahkamah Konstitusi RI · accessed
  5. Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Perppu Nomor 2 Tahun 2022 tentang Cipta Kerja menjadi Undang-Undang Kementerian Hukum RI (peraturan.go.id) · UU 6/2023 · accessed
  6. Peraturan Pemerintah Nomor 35 Tahun 2021 tentang Perjanjian Kerja Waktu Tertentu, Alih Daya, Waktu Kerja dan Waktu Istirahat, dan Pemutusan Hubungan Kerja Kementerian Hukum RI (peraturan.go.id) · PP 35/2021 · accessed
  7. Undang-Undang Nomor 2 Tahun 2026 tentang Pelindungan Pekerja Rumah Tangga JDIH BPK RI (peraturan.bpk.go.id) · UU 2/2026 · accessed
How to cite

KarirAman (2026). Labour dispute mediation in Indonesia: bipartite talks, the labour office and court. Updated 7 October 2026. https://kariraman.com/en/workers-rights/labour-dispute-mediation/

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