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All Journal Jurnal Sahabat ISNU SU
Nikmah Dalimunthe
State Islamic University of North Sumatra
Religion Humanities Law, Crime, Criminology & Criminal Justice

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The Role of Arbitration in Resolving Industrial Relations Disputes in Indonesia: A Case Study of Employment Manswab Mahsen Abdulrahman; Nikmah Dalimunthe; Aryanti Khairunnisa Br Tarigan; Ridho Rama Ardana Sinaga
Jurnal Sahabat ISNU SU Vol. 1 No. 1 (2024): ISNU Sahabat Mei 2024
Publisher : ISNU Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70826/jsisnu.v1i3.504

Abstract

In employment relationships, industrial relations conflicts are common and require efficient, fair, and effective resolution mechanisms. This study examines how arbitration institutions function in resolving industrial relations disputes and evaluates their advantages, disadvantages, and shortcomings within the Indonesian legal system. This study examines arbitration as an alternative dispute resolution method outside the Industrial Relations Court using a normative juridical approach based on laws, legal literature, and scientific studies. The results indicate that arbitration plays a significant role in encouraging conflict resolution through deliberation and agreement between disputing parties. Arbitration offers several advantages compared to litigation, such as faster dispute resolution, lower costs, confidentiality, procedural flexibility, and greater legal certainty through final and binding decisions. By encouraging agreed solutions, arbitration can also help maintain healthy relationships between employers and employees. However, the mechanism has disadvantages. These include limited opportunities for appeal, the possibility of arbitrator bias, ambiguity, and dependence on the arbitrator's ability and honesty. Despite these shortcomings, arbitration remains a useful means of resolving industrial relations conflicts when conducted with professionalism, impartiality, and good faith from all parties involved. Therefore, arbitration helps build a fair, stable, and productive industrial relations system.
Problems of Execution and Implementation of Arbitration Decisions in Settling Workers' Rights Disputes Nikmah Dalimunthe; Siti Nazua Novianti
Jurnal Sahabat ISNU SU Vol. 1 No. 1 (2024): ISNU Sahabat Mei 2024
Publisher : ISNU Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar

Abstract

Arbitration, as an alternative mechanism for resolving workers' rights disputes, should offer legal certainty that is faster and more efficient than conventional litigation. However, in practice, arbitration awards, which are normatively final and binding, often face serious obstacles at the execution and implementation stages. This study critically analyzes the problems of executing arbitration awards in the context of workers' rights disputes in Indonesia, identifies legal loopholes exploited by losing parties to delay or thwart the implementation of the award, and examines their impact on the fulfillment of workers' normative rights. Using a normative juridical approach with comparative analysis and case studies, the study finds that weak execution mechanisms, multiple interpretations of public order provisions, and procedural gaps in filing applications for annulment of awards are the main root causes of the problem. Substantive reforms in labor arbitration regulations, strengthening the capacity of arbitration institutions, and stricter mechanisms for monitoring execution are absolutely necessary.
Co-Authors Aryanti Khairunnisa Br Tarigan Manswab Mahsen Abdulrahman Ridho Rama Ardana Sinaga Siti Nazua Novianti