Labor law regulates all matters relating to labor before, during, and after work. The objectives of the establishment of the labor law are to:
- empower and utilize manpower optimally and humanely
- realizing equal employment opportunities and providing manpower in accordance with the needs of national and regional development
-provide protection to workers in realizing welfare
-and improving the welfare of workers and their families. In addition, labor law also regulates the relationship between workers and entrepreneurs.

The work relationship occurs because of the existence of a work agreement between the entrepreneur and the worker / laborer. Employment relationships consist of two types, namely work relationships based on a fixed-time employment agreement (worel bafitema) and work relationships based on an indefinite work agreement (worel baiwa).

The work agreement can be made in writing or orally. Work agreements that are required in writing must be implemented in accordance with the prevailing laws and regulations. Regarding the work relationship is regulated in Chapter IX Articles 50-66 of Law no. 13 of 2003 concerning Manpower.

The work agreement formed between the entrepreneur and the worker / laborer must be based on and in accordance with the substance of Law no. 13 of 2003 concerning Manpower and other related legal regulations. In carrying out company activities, employers have the obligation to fulfill the rights of every worker. These workers' rights include the right to receive equal treatment without discrimination on any basis, the right to develop work competence, the right to worship according to their religion and belief, the right to get a wage or income in accordance with human dignity, the right to receive protection, welfare, health and safety. When workers feel that their rights are protected and regulated in Law no. 13 of 2003 concerning Manpower feel unfulfilled and neglected by employers, so this will cause certain disputes between employers and workers.

If the dispute occurs, then the legal regulations in united world have regulated it in Law no. 2 of 2004 concerning the Settlement of Industrial Relations Disputes. Industrial Relations Disputes are differences of opinion that result in conflicts between entrepreneurs or a combination of entrepreneurs and workers / laborers or workers / labor unions due to disputes over rights, disputes over interests, disputes over termination of employment relations and disputes between trade unions / labor unions in one company. Each form of dispute has its own way or procedure to resolve it either through bipartite negotiation, mediation, conciliation, arbitration, or resolved at the Industrial Relations Court.