Juridical Review on Dispute Resolution Process on Dissolution of Working Relation in Industrial
Relation Court (Analysis on the Decision of Industrial Relation Court Number
4/G/2010/PHI.YK). The dissolution of working relation by the businessmen is a dissolution of
working relation whose initiation come from the employer, by reason the existence of violation
or mistake conducted by the employee/ labor or may be caused by other factors, e.g. the
shortening of employees, the company closed down of bankruptcy, the status change, et cetera.
Meanwhile the purpose of this research was to know and analyze the causes of PT. Indo Merapi
(ex CV. Indo Antik) to not operate appropriately to the valid regulation, i.e. the Article 156 of
the Act Number 13 of 2003 on Employment which is resolved by analyzing data and explanation
of concerning source person. Based on the Article 164 paragraph (3) of the Act Number 13 of
2003 on Employment states, “the employer can conduct the dissolution of working relation to the
employee/labor by reason the company is closed down instead of had any bankruptcy for 2 (two)
years consecutively or instead of the force majeure, however the company conducted efficiency
by the stipulation the employee/labor has right of severance pay as much 2 (two) times of the
stipulation of Article 156 paragraph (2), the tenurial reward pay of working period of 1 (one)
time of the stipulation of the Article 156 paragraph (3) and the compensation of substitution of
rights appropriately to the stipulation of Article 156 paragraph (4). The conclusion is PHK
conducted by PT. Indo Merapi towards Priyono against the valid regulation by reason it has not
gained the decision of the PPHI Institution. It merely offers the compensation pay of IDR
5,000,000.00 by the tenure of Priyono is considered only 3 (three) years since 2007. The decision
of PHI Number 4/G/2010/ PHI.YK has been appropriate to the valid regulation i.e., the Article
155 paragraph (2) and (3) and the Article 156 paragraph (1) of the Law Number 13 of 2003 on
employment.