Constitutional Court Decision No. 132/PUU-XXIII/2025: Adjustment to the Time Limit for Termination of Employment (PHK) Claims

On 17 September 2025, the Constitutional Court of Indonesia (“the Court”) rendered Decision No. 132/PUU-XXIII/2025 reviewing the constitutionality of Article 82 of Law Number 2 of 2004 on Industrial Relations Dispute Settlement (“Law No. 2/2004”). The provision had previously been interpreted in Constitutional Court Decision No. 94/PUU-XXI/2023, which held that the claims of termination of employment (Pemutusan Hubungan Kerja or PHK) should only be filed within a period of one year from the date the decision of termination is received or notified by the employer. The judicial review petition was filed by an employee who had been dismissed. The Petitioner argued...