The definition of bipartite negotiation in Article 1 number 10 of the Law Number 2 of 2004 on the Resolution of Industrial Relationship
(“UU PHI”) is a negotiation between the workers/labours or worker unions/labour unions and the enterpreneur to resolve industrial relations dispute.
The dispute of industrial relationship must be settled first through bipartite negotiation by deliberation to meet the settlement, and the deadline for the settlement by bipartite negotiation is no longer than 30 (thirty) working days since the first day of negotiation. If within 30 (thirty) working days, one of the parties refuses to negotiate or the negotiation has been conducted but does not reach settlement, then the bipartite negotiation is considered as fail.
In every bipartite negotiation that is held by the entrepreneur and workers, minutes of meeting has to be made and signed by the parties. The minutes at least contains:
- Full name and addresses of the parties;
- The date and places of negotiations;
- The subject matter and the dispute background;
- The opinion from the parties;
- The conclusion or the results of the negotiations; and
- The date and the signature of the negotiating parties.
If bipartite negotiation reaches settlement, both of parties shall make a joint agreement signed by the parties. The joint agreement is binding and must be obeyed by the parties. The joint agreement shall be registered by the parties to the Industrial Relations Court on District Court, in the domicile of the parties who made the agreement. Joint agreement that has been registered is granted with the deed of evidence of joint agreement registration and became an integral part that is inseparable from the joint agreement.
If the joint agreement that has been made is not performed by one of the parties, then the aggrieved party can propose the execution to the Industrial Relations Court on District Court, in the domicile where the joint agreement is registered to get the determination of execution. If the domicile of the applicant is located outside of the district court’s jurisdiction where the joint agreement was registered, then the applicant can propose the execution through the Industrial Relations Court on District Court in the domicile of the applicant to be forwarded to the Industrial Relations Court on District Court that has the jurisdiction to perform the execution.
If the bipartite negotiation fails, then one of the parties or both parties can make a written notification about the dispute and send it to the authorized institution having the responsibility in labor matter, by attaching the evidences to prove that the settlement through bipartite negotiation has been made. If the evidence is not attached, the petition will be returned to the applicant to be completed within the period of 7 (seven) working days since the documents have been received by the applicant. After receipt of registration from one of the parties or both parties, the authorized institution in labor matter shall be obliged to offer to the parties to choose whether the settlement will be performed through conciliation, mediation, or arbitration. If the parties do not choose the options, within the period of 7 (seven) working days, the authorized institution that have responsibility in labor matter delegates the dispute settlement to a mediator.