Legal Remedies toward Default in Frontliner Work Agreement

Contract

Patmawati, Azharuddin, Chris Anggi Natalia Berutu and Elvira Fitriyani Pakpahan

Magister of Notary, Universitas Prima Indonesia, Jl. Sekip Simpang Sikambing, Medan, Indonesia

Keywords: Default, Temporary Work Agreement, Front liner, Legal Remedies.

Abstract: Work contract issues that bind parties between workers and employers in business are frequent occurrences.

Both parties enter into a work agreement. In the agreement, an effort that can be done by the government is

to carry out supervision to prevent bias in the contract (which is still happening in now day). The purpose of

this study is to observe and analyze work contracts in terms of rules using the empirical normative juridical

method. The findings show that until now there are still many disputes that are only resolved by litigasti or

non-litigation but have not been clearly regulated in the labor law that is currently in effect. It can be

observed that regulations on how to minimize an agreement that is burdensome to a party in an industrial

relations contract are still lacking.

1 INTRODUCTION

In Indonesia, especially in the business world, it

cannot be denied that workers and employers or

employees and companies are inseparable. If

someone wants to do business, then manpower is

needed to help him build and manage the business.

Both parties must sign an agreement which is called

a worker agreement. A work agreement is the

beginning of a bond between employers and workers

in an employment relationship. A work agreement in

a work relationship is an important part because a

good work agreement will create a harmonious work

relationship and increase optimal work productivity

which has functions, goals and benefits.

Employment agreements can cover various types

of work, all work requested by the employer.

Judging from the terms of the work agreement, an

employer can make a work agreement for a certain

period of time earlier or not. However, to provide

legal certainty for workers and employers, the work

agreement related to this term is divided into 2 (two)

types of work agreements. The factors that are

thought to contribute to the public and private risk

positions are evaluated. In addition, the relationship

between private buyer-supplier risk position, public,

contract duration, supplier side investment is

discussed. Results show that a well-structured long-

term contract can: 1) provide the risk mitigation

mechanisms needed for both public and private

actors, and 2) facilitate supplier-side private

investment (Hartman, 2020).

In the legal review, there are 2 (two) types of

work agreements, namely temporary work

agreements, contract workers and non-special

temporary work agreements, for example permanent

workers. Permanent workers are workers who are

bound by a work agreement with the company for a

period of up to the retirement age as stipulated in the

Collective Bargaining Agreement. Temporary

workers or commonly referred to as contract

workers are workers who are bound by a work

agreement for a certain period. Time with the

company based on applicable laws and regulations.

For contract workers there is no trial period and no

age limit applies. Facilities and benefits that apply to

permanent workers, do not automatically apply to

contract workers unless stipulated in the provisions.

Nowadays, it cannot be denied that in the

banking world many people use temporary work

agreements because it is more profitable for the

company, both in terms of employees who are

always productive, and the company does not need

to spend more money to pay severance pay when

employees stop working because the contract

expires. Many other situations arise in practice

where clear legal procedures do not apply. In this

note, attention is paid to the importance of

structuring the details of claims and the

consequences for which employee claims are

426

Patmawati, ., Azharuddin, ., Natalia Berutu, C. and Pakpahan, E.

Legal Remedies toward Default in Frontliner Work Agreement Contract.

DOI: 10.5220/0010313100003051

In Proceedings of the International Conference on Culture Heritage, Education, Sustainable Tourism, and Innovation Technologies (CESIT 2020), pages 426-434

ISBN: 978-989-758-501-2

formulated incorrectly. Remedies that may be

available to employees in terms of common law and

statute are investigated (Barnard, 2010).

If the bank has thousands of branches, it is sure

to look for employees who are still young and have

just finished their schooling who are prioritized as

frontliners. Unfortunately, what is the fate of

Customer Service and Tellers getting old? They

cannot be placed directly in the back office because

the bank does not need a lot of manpower. One

possibility is to split ownership and management

rather than assets. The history of antitrust law is full

of firms organized as single entities under company

law, but functioning as competitors and being

treated as such by antitrust laws. This allows

productive assets to remain intact, but forces

decision makers to behave competitively. Finally,

this study looks at the acquisition problem of

nascent enterprise platforms, where the greatest

threat is not from horizontal mergers but from

complementary acquisitions or differentiated

technologies. The tools currently used in the merger

law are inappropriate(Hovenkamp, 2020).

Based on the facts, the unequal bargaining power

of the parties was found. Even though the agreement

has put forward the principle of freedom of contract.

Contract freedom is based on the assumption that the

parties to the contract have a balanced bargaining

position, but in reality the parties do not always have

a balanced bargaining position (Pakpahan, 2017).

This is the main reason workers cannot bargain with

employers. The workers can only fulfill the

conditions given by the employer. Whereas in a

good cooperative relationship there is no more

important party because employers and workers

need each other, where employers need workers to

work in their companies and vice versa workers

need employers to get wages / salaries for the

business to operate properly and smoothly.

Employees have high productivity and work

motivation, so the wheel rate will run faster which in

turn will result in good performance and

achievement for the company.

Organizations can measure trustworthiness and

manage it to build trust and strengthen loyalty

intentions among their customers. A possible

extension is to conduct longitudinal studies to map

the nature of trust and loyalty that develops over

time and stages of customer life. Virtue and

problem-solving orientation of FLEs and MPPs on

their belief in FLE and MPP and loyalty intentions

(Shainesh, 2012). Relate to trust as articulated in the

stakeholder trust organization model. Scholars in

marketing need to develop a more macro-view of the

company that examines trust outside of customers to

reflect a broader stakeholder focus and exclude the

corporate social responsibility, trusted reputation

and license to operate that will be needed to restore

and maintain stakeholder trust. in big banks.

Building a trustworthy bank is essential for social

and economic progress (Hurley, 2014).

The ecosystem in that country is then included as

a working rule maker, so that each party understands

their rights and obligations well. Because of these

rules, it is called the Manpower Act. As a law that

aims to provide protection to workers in realizing

the welfare of workers and their families, Law

Number 13 of 2003 concerning Manpower which

explains the guidelines for work agreements and this

Law becomes the legal basis for every work

agreement.

Recovers damage from lost increases if the

employer fails to comply with the discipline code

requirements. But it is difficult to see what

contractual settlements will be available at that time

for the Mahkota to withhold a disciplinary transfer

on the grounds that the disciplinary proceedings are

carried out in violation of the rules of natural justice

(breaking the rules that apply). Usually in public law

courts show little desire to be applied in an

employment context (Ewing, 2009).

Temporary work agreements only apply to

certain jobs, which according to the type and

characteristics or work activities will be completed

within a certain time, namely after the work is

completed. Usually a maximum period of 3 (three)

years, the work is seasonal and the work is related to

new products, new activities, or additional products

that are still under trial or investigation. This is

clearly stated in the Manpower Law. Moral anger

must be a decisive solution and a philosophically

informed approach to judicial interpretations to

address ongoing injustices or threats of injustice

aimed at vulnerable communities such as women

and religious minorities in a political climate

(Rudolph, 2020).

These capital outflows will be associated with

low income volatility, while capital inflows will be

associated with high income volatility. The negative

effect of financial liberalization on income volatility

in developing countries is due to the fact that the

majority of these countries have capital inflows that

are larger than those of capital outflows. Therefore,

excess capital inflows in developing countries

increase pressure and vulnerability to crises

(Feriansyah, 2018). Households adopt contracts that

rely on unverifiable outcomes, which cannot be

formally contracted, when penalties for breach of

Legal Remedies toward Default in Frontliner Work Agreement Contract

427

contract are weak. In contrast, households adopt

contracts that rely on legally contractable and

verifiable results when penalties are severe. This

evidence is consistent with the terms of the

optimally selected contract given what can be

formally contracted or not (Michler, 2020).

The task of a frontliner (Customer Service), must

be able and clever to solve a problem or must be

good at finding a way out in solving a problem faced

by consumers or customers. Customer Service is

responsible for providing good service and

maintaining good relationships with customers or

clients. Customer Service also serves receptions,

communicators by providing information and

convenience to customers who need assistance,

providing information on bank products, serving

bookkeeping and closing customer accounts,

handling complaints to serving all forms of

complaints from customers, serving customers in

terms of services or products and implementing

tasks assigned by superiors. An extension of

subpoena powers held by agencies such as the SEC,

FTC, and EPA and is a lynchpin of a system that

relies on the private sector to enforce laws. By

forcing parties to disclose large amounts of

information, the findings prevent harm and most

importantly shape industry-wide practices and the

core behavior of regulated entities. This approach

has various implications for the scope of findings as

well as the cost debate. Therefore, scholars and

courts have to grapple with the consequences of

what I call "regulatory discovery" for the entire legal

system (Zambrano, 2020).

The task of a frontliner (teller) is to provide

banking services for customers and prospective

customers in a bank. The teller's function is very

crucial, because every day they are directly dealing

with customers. The teller is tasked with making

non-cash or cash payment transactions to transaction

customers and updating the transaction data on the

computer system, is required to provide a receipt slip

to the transaction customer and sign it as an

authentication signature, and is responsible for the

suitability between the amount of cash in the system

and the cash received. The law has three tools for

regulating the social costs of contracts: defining the

subject matter of which parties can bargain,

interacting with the parties as regulators and finally

interpreting and reforming in Courts. Post-hoc social

cost considerations are the least well-known, and

most uncertain, way of managing contract

externalities. These techniques are used as the basis

for specific applications of public policy contract

law. In practical terms, this Essay advises

negotiating parties to consider public health because

history teaches that at least for some time(Hoffman,

2020).

The problem is not the ease of cancellation after

a violation; on the contrary, the problem relates to

recovery after cancellation. This Article presents

arguments for liberal cancellation followed by

limited remedies. Reforms and modern proposals

seem to embrace the opposite route, limiting access

to temporary cancellations, allowing remedies.

Reform of the proposal is a real threat to contract

stability (Brooks & Stremitzer, 2011). Frontliners

job at a bank are not temporary or seasonal jobs, but

frontliners are generally temporary workers. This is

very interesting to research.

Aloysius Uwiyono, Professor of Labor Law at

the University of Indonesia, said the gap in the use

of contract employees is very open, because the

Manpower Law allows it. Enforcement of work

rules is weak, because the sanctions given to those

who violate are quite light. It is difficult to deny that

the reason banks use the contract employee system

is because of this. The work contract agreement has

a very important function, namely providing legal

certainty for the parties, both regulating the rights

and obligations of the parties, as well as securing

business transactions and regulating the pattern of

dispute resolution that arises between the two

parties. Thus, in the event of a dispute / defect

regarding the implementation of the agreement (non

performance of contract) between the parties, the

legal document will be used as a reference for the

settlement of the dispute.

The work contract agreement is intended to

ensure that what the parties want to achieve can be

realized in the work agreement. In this study, this

study looks at the legal aspects of the terms of

contracts made with employees by bank companies,

which mostly do not protect the position of

employees. In fact, a contract must be balanced and

not burdensome to either party. Therefore, in this

paper it is emphasized that what multiplication

should be between contract employees and the

company. Seeing the large use of contracted

frontliners in the banking world, of course the author

is very concerned. In addition, the author also works

as a contracted frontliner at Bank X. What is special

about this research from the others is that it sees a

contract from one bank that is related to Indonesian

law. Some of them look from the ways of respecting

to know what needs to be changed for the new legal

ways.

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2 METHOD

This research was carried out by using a normative

empirical juridical research type which means that

company rules are taken against secondary data

which is the basic material of the Indonesian Law

(Law Number 13 of 2003 concerning Manpower and

Law Number 2 of 2004 concerning Settlement of

Relationship Disputes. Industrial) and company

regulations for entrepreneurs. Information was

obtained from several banks in the city of Medan by

comparing Indonesian law which leads to

conclusions about laws affecting the future.

The company is a bank where employment

contracts are binding on employees compared to the

law. The consequences of default or breach of

promises in the contracts of bank frontline

employees must be compared and legal remedies

must be made to ensure that the rules are

implemented and create a new analysis of the

existing agreements. Furthermore, the suitability and

differences between bank regulations and prevailing

laws and regulations in Indonesia are compared and

evaluated.

3 RESULTS AND DISCUSSIONS

3.1 Consequences for Front Liners

Who Defaulted the Contract in the

Work Agreement

Contract and covenant are the same term. Both have

the same core, namely the existence of an

agreement. There are two parties that agree to

cooperate, which regulates the things promised and

the obligations that must be obeyed when

implementing the cooperative relationship. For both

parties who agree to enter into a contract or

agreement, the content must be legally valid and

binding on both parties. The work agreement

becomes null and void and is deemed to have never

existed, if the work agreement is contrary to

statutory regulations.

Frontliner contracts are designations of job

positions in the company. In banking companies use

the term frontliner where the job position is bound

within a certain agreed period of time. Frontliner

contract positions may include Customer Service

and Tellers. The contract frontliner appointment

mechanism must be in accordance with the general

requirements for hiring employees and be based on a

specific period of service agreed by both the

employee and the employer.

The mechanism for appointing a contract

frontliner to become a permanent frontliner is based

on company needs. If the company needs it, it will

be confirmed with a Decree on the Appointment of

Workers to become permanent frontliners. However,

to become a permanent frontliner, a worker must

have served 2 (two) years as a contract frontliner.

If we look at frontliners in banks, it is clear that

frontliners' jobs are not temporary or seasonal jobs,

but main jobs. If it is related to a frontliner work

contract at a Bank, it is clear that the agreement is

legally canceled because it is against the law. Keep

in mind, that voids can be in the form of an

agreement as a whole or it can also be canceled only

articles or provisions in an agreement that are

contrary to law.

To be legally nullified means that the agreement

has never existed. So the reference returns to what

has been regulated in the Act. Based on the legal

basis, workers can submit to the company to adjust

the provisions in the work agreement with the

applicable laws so that the rights of workers / labor

as workers are not violated. In the event that there is

no agreement between the worker / laborer and the

employer, the worker / laborer can file a lawsuit at

the Industrial Relations Court on the basis of a

dispute over rights and request that the work

agreement be adjusted to the applicable provisions.

In implementing a work agreement between an

employer and a worker, an employment bond is

required. In the work agreement there is an

agreement between the two parties, which means

that both will fulfill their respective rights and

obligations and follow the contents of the

agreement. However, in its implementation,

sometimes there are disturbances or obstacles, such

as the contents of the agreement not being carried

out as determined (non-performance of contract).

And if someone commits an act against the law, then

the perpetrator can be given a sanction. The

contractual performance in the work agreement can

be in the form of:

 Not doing what the workers are able to do,

 Doing what was promised, but not exactly as

promised,

 Did what was promised but not on time

 Doing something under the contract you

should not do.

Against contract frontliners who are found to

have violated an agreement or regulation (non

performance of contract), the company has

consequences for workers based on Law Number 13

Legal Remedies toward Default in Frontliner Work Agreement Contract

429

of 2003 concerning Manpower. The consequences

can include claims for compensation, warning

letters, and even termination of employment

depending on the extent of the violation.

Termination of employment will be the last resort if

there is a dispute in the employment relationship.

The position of workers can actually be viewed from

two aspects, namely from a juridical and socio-

economic perspective. From a socio-economic

perspective, workers need legal protection from the

state against the possibility of arbitrary action by the

employer.

Based on the provisions of Article 27 of the 1945

Constitution, every citizen is simultaneously placed

in a legal and governmental environment. This

provision is further stated in Articles 5 and 6 of Law

Number 13 Year 2003 concerning Manpower.

Article 5, that every worker has equal opportunity

without discrimination to get a job. Article 6,

namely every worker / laborer has the right to equal

treatment without discrimination from the

entrepreneur. The position between employer and

worker is not the same, legally the position of free

labor, but socially and economically, the position of

labor is not free.

This unbalanced position causes workers to rely

solely on the energy inherent in themselves to carry

out their work. This situation creates a tendency for

employers to do arbitrary things to workers. Legal

protection for workers is needed because of their

weak position. Workers need to be protected by the

state through government interference. The form of

protection provided by the government is by making

regulations that bind workers and employers;

fostering and supervising the industrial relations

process.

The making of an employment agreement in a

work relationship between workers and employers

aims to provide legal certainty and legal protection

to the parties. This is in accordance with the theory

of work agreement and labor law protection theory.

However, according to the results of the analysis the

authors found that, in the consequences and forms of

legal remedies, the non-performance of the contract

in the work agreement is more in favor of the

employer. The consequences of labor regulations are

more about the consequences that occur on the part

of the workers.

As for entrepreneurs, the consequences are not

explained. The consequences for the company will

only be penalized if they are violated, but the types

of sanctions are not explained in detail. So that this

can be used by employers to arbitrarily submit to

workers / laborers. The government issues a law, the

aim of which is to participate in protecting (workers)

who are weak from the power of employers, in order

to place them in a position worthy of human dignity.

This goal will be achieved if the government issues

laws that enforce and impose strict sanctions on

employers who avoid it.

3.2 Legal Forms toward Defaults of

Work Agreement Contract

Law is always attached to human life as an

individual or society. With various roles, law

functions to order and regulate social relations in

society and solve problems that arise in social life.

The main objective of the labor law is the

application of social justice and its implementation

is regulated by protecting workers from the

unlimited power of the employer. The subject of

labor law is a person consisting of workers / laborers

and employers. Overall, problems that occur because

one party does not respect what was promised, can

lead to disputes that must be resolved legally.

In the manpower sector, disputes between

employers and workers usually occur because of

feelings of dissatisfaction with the rights or policies

granted by the employer. UU no. 13/2003

concerning Manpower does not regulate the legal

remedies that can be taken by the parties if there is a

contract mismatch in the work agreement. However,

these legal efforts are regulated separately in Law

no. 2 of 2004 concerning Industrial Relations

Dispute Resolution. There are several forms of legal

action that can be taken by the parties in the event of

a dispute due to non-performance of the contract in

the work agreement, including through non-

litigation and litigation channels or what is more

commonly called legal channels.

3.2.1 Non-litigation Path

If the parties prefer to resolve the dispute in a good

manner, then the non-litigation route is highly

recommended because the problem solving

technique is carried out outside the court. One of the

ways that can be done to resolve legal disputes is by

conducting bipartite negotiations, mediation,

conciliation and arbitration. If there is a legal dispute

in the work agreement, this non-litigation route takes

precedence. The reason is, the technique of solving

legal problems is carried out in a friendly manner.

To resolve industrial relations disputes between

workers / laborers or groups of workers and

employers, the first step is bipartite negotiation. The

way bipartite negotiations work where all kinds of

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disputes must be sought through deliberation. If the

negotiations reach an agreement, the collective

agreement is recorded at the Industrial Relations

Court. On the other hand, if the negotiations do not

reach an agreement, then one of the parties will

record the dispute to the agency responsible for

manpower in the Regency / City.

To carry out the dissemination, absolute

requirements are needed, namely in the form of

evidence or minutes. If the proof of negotiation is

not available, the record will be rejected.

Furthermore, given 30 (thirty) days to conduct

bipartite negotiations. If the negotiations are finally

brokered and an agreement is reached, a Collective

Agreement will be made which will be recorded at

the Industrial Relations Court. Negotiations do not

result in an agreement with complete evidence, the

parties will be offered a conciliator or arbitration

settlement. If the parties do not choose or instead

choose mediation, the dispute will be resolved in a

mediation forum. To resolve disputes over rights,

conflicts of interest, termination of employment, and

disputes between groups of workers within one

company, mediation negotiations are used. This

mediation is carried out through discussions which

are mediated by one or more neutral mediators.

To handle and resolve the four types of disputes,

the mediators in the mediation negotiations are

employees of government agencies appointed by the

Minister. Where the mediator has jurisdiction in the

Regency / City. Discussion is a dispute resolution

technique used by mediators.

The mediator must issue written advice,

negotiations do not result in mutual agreement. The

Collective Agreement will be recorded at the

Industrial Relations Court, the mediation

recommendation results in an agreement of the

parties. Conversely, if one of the parties rejects the

mediation recommendation, the party refuses to

submit a dispute to the Industrial Relations Court.

To resolve conflicts of interest, disputes over

termination of employment or disputes between

groups of workers in one company are used through

conciliation negotiations. This conciliation is carried

out through discussion mediated by a neutral

conciliator.

Handling disputes over interests, disputes over

termination of employment, and disputes between

groups of workers in a company. The conciliator in

conciliation negotiations is someone who is not an

employee of a government agency. But people who

have been legitimized and appointed by the

Minister, and have the same authority as mediators.

To resolve disputes over interests and disputes

between groups of workers in one company alone

are used arbitration negotiations. Arbitration is

carried out in writing with the consent of the

disputing parties. The arbitration is brokered by an

arbitrator and the arbitrator's decision is final.

Handling conflicts of interest and disputes

between groups of workers who will become

arbitrators, namely not employees of government

agencies but people who have obtained legitimacy

and are appointed by the Minister who has national

authority. The way the arbitrator works in

cooperation with other negotiations is to put forward

the settlement in the discussion. A Collective

Agreement will be drawn up and registered at the

local Industrial Relations Court and the parties agree

to peace. Conversely, if no agreement is reached, the

Arbitrator will issue a final decision. These

arbitration negotiations are voluntary. Industrial

relations dispute resolution through arbitration

institutions can occur because the two parties agree

to resolve the dispute through arbitration.

3.2.2 Litigation Path

The litigation line is also called the legal route. This

line is formed by the government to get equitable

cooperation where the role of government is very

important. There are several policies established by

the government in the context of manpower

development:

1. Establish a wage system that every company

must follow. To support their family or

themselves, every worker / laborer has the

right to get wages from his work. The

government establishes a wage policy that

protects workers, namely Law Number 13 of

2003 concerning Manpower in Chapter 10

concerning wage arrangements with the aim

of creating a decent life for every worker /

laborer.

2. Ratify Company Regulations and Collective

Bargaining Agreements. The Minister or the

appointed official is given a maximum period

of 30 (thirty) working days to comply with

company regulations since the company

regulation has been received. Applies The

Minister or the appointed official has not

ratified it. The minister or the appointed

official is obliged to notify the regulator in

writing that the company has not fulfilled the

requirements in order to improve the company

regulations. The employer is obliged to

convey the revised company regulations to the

Minister or the appointed official within a

Legal Remedies toward Default in Frontliner Work Agreement Contract

431

period of at least fourteen working days from

the date the employer receives the notification.

Employers and workers / labor representatives

agree that before the expiration date, changes

to company regulations can be made. The

results of these changes must have been

approved by the Minister or the appointed

official. The collective working agreement

comes into force on the day of signing, unless

the collective working agreement signed by

the party making the collective working

agreement is then registered by the employer

at the agency responsible for manpower

affairs.

3. Supervise and enforce labor regulations. The

government is obliged to supervise and

enforce labor laws in order to realize industrial

relations. The responsibility is not only

government but also workers and employers.

4. In the implementation of construction, the

government fosters integrated and coordinated

elements and activities of manpower by

including employers 'organizations, workers'

groups and related professional organizations.

In accordance with applicable laws and

regulations, the government, employers

'organizations, workers' groups and related

professional organizations are allowed to carry

out international cooperation in the field of

manpower. The government will provide

personal or institution that has contributed to

the development of manpower in the form of a

charter, money, and / or other forms.

5. Labor inspection is carried out by employees

of the labor inspection. The employee is

appointed by the Minister or official. These

employees are required to have competence

and independence to ensure the

implementation of labor laws and regulations.

Labor inspection is carried out by a separate

work unit in the agency whose scope of duties

and responsibilities in the manpower sector is

in the central government, provincial

governments and district / city governments as

stipulated by a Presidential Decree. The work

unit of labor inspection as referred to in the

provincial government and district / city

government is obliged to submit a report on

the implementation of the labor inspection to

the Minister whose reporting procedure is

stipulated by a Ministerial Decree. Provisions

regarding the terms of appointment, rights and

obligations, as well as the authority of labor

inspection employees must comply with the

prevailing laws and regulations. In carrying

out their duties, every employee of the labor

inspector is obliged to keep all secrets and not

to abuse their authority.

6. The socialization of labor regulations is the

key to all the root problems that arise in work

agreements. Socialists need a budget. A

limited budget can affect and hinder the

socialization of labor regulations. The

socialization aims to make workers and

employers aware of labor regulations. This

aims to minimize violations that occur. The

functions and roles of the Government in

disseminating labor regulations are highly

expected.

Optimizing the role of the government in

manpower must be a priority scale because this is

the key and root cause of the labor turmoil that has

occurred in many regions. Hopefully everything can

be done well and in accordance with the

expectations for the creation of a healthy investment

climate and equal distribution of welfare for workers

as well as for employers themselves. The parties

prefer to settle disputes through court channels, so

this litigation route is highly recommended because

the problem solving technique is carried out legally

through the Industrial Relations Court.

The District Court which has the authority to

examine, hear and give decisions on industrial

relations disputes is the Industrial Relations Court.

On the recommendation of the Chief Justice of the

Supreme Court, the President will appoint the

Chairman of the Industrial Relations Court. The

Chairman of the Industrial Relations Court is the

Chairman of the local District Court. The Panel of

Judges consists of one Chairperson of the Panel of

Career Judges, two Ad-Hoc Judges, each from an

entrepreneur and a worker. Career judges are

supreme judges who are active as judges in a judicial

body under the Supreme Court who are nominated

by the Supreme Court.

Ad-hoc judges are judges appointed on proposals

from groups of workers and employers'

organizations. Ad-Hoc Judges have the authority to

examine, adjudicate, and impose decisions on

industrial relations disputes. Based on Article 2 of

Law Number 2 of 2004 concerning Settlement of

Industrial Relations Disputes, the Industrial

Relations Court has the authority to handle four

types of disputes, namely:

1. Rights dispute, there are rights that cannot be

fulfilled in a work agreement, it is called a

rights dispute. There are differences in the

implementation or differences in interpretation

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of the Law, Work Agreement, Company

Regulation or Collective Bargaining

Agreement, this will result in a dispute over

rights.

2. Conflict of interest, there is an opinion that

cannot be adjusted in a work agreement, so it is

called a conflict of interest. Because there are

differences of opinion regarding the creation

and / or changes to the working conditions in

the Work Agreement, Company Regulation, or

Collective Bargaining Agreement, it will create

a conflict of interest.

3. Employment termination dispute, one of the

parties does not agree with the opinion on

termination of employment, it will result in a

termination dispute.

4. Disputes between groups of workers,

mismatches of understanding between groups

of workers in a company, then disputes will

occur.

In accordance with Article 57 of Law no. 2 of

2004, the law applicable to the Industrial Relations

Court is civil procedural law unless otherwise

stipulated.

4 CONCLUSIONS

For frontliners, a contract that is proven to have

violated an agreement or company order agreement

(non performance of contract), the company will

have consequences based on Law Number 13 of

2003 concerning Manpower. The consequences of

labor regulations are more about the consequences

that occur on the part of the workers. Whereas for

entrepreneurs the consequences are not explained,

therefore it is necessary to optimize the role of the

government in employment. This must be a priority

scale because it is the key and root cause of the labor

unrest that has occurred in various regions as well as

a form of legal remedies that the parties can take if

one of the parties made defaults on the contract. In

work agreements, there are two types, namely

through non-litigation channels consisting of

bipartite negotiation, mediation, conciliation,

arbitration and through the litigation channel,

namely the industrial relations court. These legal

remedies are regulated individually in Law Number

2 of 2004 concerning the Settlement of Industrial

Relations Disputes.

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Laws

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LawNumber 2 of 2004about Resolving Disputes in

Industrial Relations.

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