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

On3 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 ”).