In September 2025, Indonesia’s Constitutional Court made an important decision that will affect many workers and employers in the country. In Decision No. 132/PUU-XXIII/2025, the Court made a significant change to the rules about challenging unfair dismissals (“PHK”).
A Change in the Filing Deadline for Employment Lawsuits
Before this ruling, workers had up to one year from the day they received a termination notice to challenge their dismissal at the Pengadilan Hubungan Industrial (“PHI”). However, this one-year deadline is often deemed too short, especially when mediation or conciliation processes—designed to settle disputes peacefully—took up much of the time.
Under the new ruling, the Court revised the deadline: it now begins not from the employer’s decision but from the date when mediation or conciliation fails. This adjustment gives workers more time to act if they face delays or difficulty accessing legal help.
Balancing Justice and Legal Certainty
The Court’s decision tries to balance fairness for workers with the need for clear rules for employers. On one hand, workers need enough time to challenge unfair dismissals, especially those who might not know their rights or have legal support. On the other hand, employers need clear and predictable laws for managing their operations.
By starting the deadline from the end of mediation, the Court ensured fairness without extending the deadline too much. It still keeps the one-year limit but gives workers a chance to act after mediation fails. While the Court rejected suggestions to extend the deadline to three years, it nonetheless ensured the process is fairer for workers who might face delays.
How Does This Impact Workers?
For workers who feel they were unfairly terminated , this ruling represents a meaningful step forward, for it isalegal step. They now have more time to seek help and take action once mediation fails. This change also helps workers who may not have immediate access to legal advice or support. The Court’s decision makes the law more accessible and fair, giving workers a better chance at justice.
How Does This Impact Employers?
For employers, the ruling keeps the one-year deadline intact, which helps businesses know when to expect lawsuits. At the same time, the ruling provides some flexibility for mediation delays, reducing the chances of legal disputes while still protecting workers’ rights.
In short, the Court gave employers clear rules while recognizing the real-world issues in resolving disputes.
A More Human-Centered Approach to Employment Law
This ruling shows a shift in how employment law is viewed. It goes beyond just technical details and considers human challenges and delays in the legal process. The decision makes the law more fair and just for everyone involved, not just an impersonal set of rules.
Key Takeaways:
- A Better Deal for Workers: The one-year deadline to file lawsuits still stands, but it now starts when mediation or conciliation ends, giving workers more time.
- Balanced Approach: The ruling protects workers’ rights while keeping things clear and predictable for employers.
- Easier Access to Justice: The decision makes it easier for workers to seek justice, especially those facing delays or barriers to legal support.
Conclusion:
Decision No. 132/PUU-XXIII/2025 is an important change in Indonesian employment law. It balances fairness with legal certainty, giving workers more time and opportunities to seek justice while protecting employers. This ruling shows that law can evolve to be more flexible and fair, ensuring that it serves both order and humanity.