Reforming The Settlement of Labor Disputes in Achieving the Integration of National Digital Services

Abstract

The resolution of labor-related disputes, as well as key rules governing workers and employment problems, is based on Law No. 13 of 2003 on Manpower and Law No. 2 of 2004 on Industrial Relations Dispute Settlement, may be pursued through both judicial and non-judicial mechanisms. However, practical implementation reveals persistent challenges, particularly in realizing the principles of dispute resolution that are expeditious, straightforward, and affordable. This study employs a normative juridical methodology by examining legal doctrines through a literature review and comparative analysis of statutory provisions. The findings indicate several determinants influencing the effectiveness of mediation, conciliation, and the Industrial Relations Court (IRC). The performance of the IRC demonstrates suboptimal effectiveness in upholding principles of fairness and efficiency in dispute adjudication. When mediation or conciliation results in mutual agreement, the parties may register the settlement with the IRC for certification; conversely, unsuccessful negotiations allow the filing of formal claims before the IRC. To promote a dispute resolution system that is efficient, swift, and cost-effective, Presidential Decree No. 82 of 2023 on the Acceleration of Digital Transformation and National Digital Service Integration provides a legal foundation for modernizing industrial relations dispute resolution mechanisms through digital innovation.