This research examines the role of the Surabaya City Department of Industry and Manpower in handling labor complaints in industrial companies, with a focus on the dispute resolution process. With a qualitative approach, this research explores the mediation process facilitated by the department, particularly in cases of unilateral termination of employment (layoffs). The findings show that mediation is effective in achieving peaceful resolutions, avoiding litigation, and ensuring fair outcomes for both workers and employers. The identified constraints include incomplete documentation, absence in mediation, and differences in legal interpretation, which prolong the resolution process. This research highlights the importance of improving documentation systems, raising stakeholder awareness, and developing mediator competencies. This research provides insights into the effectiveness of government intervention in maintaining harmonious industrial relations and suggests practical steps to improve mediation practices
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