MK Decision No. 132/PUU-XXIII/2025: One-Year Deadline for Employment Termination Lawsuits Now Counted from Failure of Mediation Efforts

On 3 September 2025, Indonesia’s Constitutional Court (Mahkamah Konstitusi – “MK”) handed down Decision No. 132/PUU-XXIII/2025 (“Decision 132/2025”) in response to a petition for a formal judicial review of Law No. 2 of 2004 on the Settlement of Industrial Relations Disputes, as amended by Regulation of the Government in Lieu of Law No. 2 of 2022 (“Regulation 2/2022”) on Job Creation (collectively referred to as “Law 2/2004”). The petition was initially submitted on 30 July 2025 by an individual petitioner (“Petitioner”).[1]