Labor law sets out two types of labor dispute resolution mechanism. They are
individual and collective dispute. Those who are in individual disputes might
first lodge their complaint at labor dispute office or department seeking
reconciliation, and then directly lodge their complaint at court. Those who are
in collective dispute shall lodge their complaint at provincial office or
department of labor dispute or at labor inspector. Then a conciliator can be
appointed by the Minister in charge of labor after receiving a complaint/being
aware of this collective dispute.
In case the
reconciliation failed, the collective dispute shall refer to the Arbitration
Council who shall deal with it according to procedures set out in labor law by
holding a hearing and making decision which known as Award (Binding or
Non-binding Award) which is very often chosen by the disputed party. The
Binding Award shall be executed immediately by both parties. The Non-binding
Award has no immediate execution.
the party act toward the Non-binding Award?
paragraph 2 of labor law says that ... The party has the right to appeal this
arbitral decision by informing the Minister [in charge of labor] by registered
mail or by any other reliable method within eight calendar days from the date
of receiving the notification.
proclamation (Prakas) Number 099/04, dated 21 April 2004, Article 40 says: each
party can reject the Arbitral Award issued by the Arbitration Council within
eight calendar days after they receive the Award. If one of the parties has
filed their complaint within the days, the Award cannot be executed. In this
case, if it is a right dispute concerning enforcement of law or regulation... the
disputed party might lodge a complaint on this case at jurisdiction court for
Basing on the
above provision, the party who has already rejected in written the Non-binding
Award has the rights to file their complaint to the court seeking final
resolution on dispute or the demand in the Non-binding Award. This is only for
right dispute concerning enforcement of law or regulation (for example labor
law, collective bargaining agreement, or Arbitral Award which come into force
in proportional to the collective bargaining agreement) except interest
the dispute over the rights and dispute of interest, the party might take other
actions in forcing the other party to follow or to make solution for their
demand, for example by strike or lock-out in according to the legal processes.
that most of the decision made by the Arbitration Council is the Non-binding
Award which is often chosen by the party. Then the party has an objection which
causes the party to have no obligation in following the decision even though
their act does not properly comply with the legal provision and the Arbitration
Council order the party to follow the law.
paragraph 1 of the labor law says: ... the final arbitral decision, if not
appealed by either party, shall be implemented immediately.
Article 46 of
the Proclamation (Prakas) Number 099/04 says: if the allowed time for rejection
is over and one of the parties refuses to follow the arbitral decision, the
other party might ask the jurisdiction court to recognize and implement the
Article 47 of
the Proclamation Number 099/04 says: one party might ignore the recognition and
enforcement of the final and binding award in which case the party shall
provide the court with evidence that the Arbitration Council's Award is not
- The disputed party did not properly
participate in choosing an arbitrator,
- There is no compliance with the
procedures set out in the labor law, and
- The Arbitration Council issued an
award, which is beyond their authority being allowed for them by the labor law.
of the Procedure of Civil Code: execution of arbitration awards
of civil code provides the party the right to file complaint to the
jurisdiction court asking for an execution of the arbitration council's final award
which is rejected by the party. On the contrary, regarding the Non-compliance
award, the disputed party cannot ask for an execution or force other party to
execute the award by filing their complaint to the court asking them to issue a
verdict of recognition or support or execute the final non-binding award. This
is against laws and regulations and the rights of other party.