{
    "success": true,
    "data": {
        "id": 2026834,
        "msgid": "outsourced-workers-prospects-change-under-new-rules-on-contracts-and-severance-pay-1791449958",
        "date": "2026-10-08 13:35:36",
        "title": "Outsourced Workers\u2019 Prospects Change Under New Rules on Contracts and Severance Pay",
        "author": "",
        "source": "VIVA",
        "tags": "bisnis",
        "topic": "Regulation",
        "summary": "Indonesia\u2019s newly passed Employment Protection Law caps outsourced workers\u2019 contracts at four years and limits outsourcing to four specified fields. It also gives outsourced workers the right to severance pay if they are laid off, while employers\u2019 association Apindo had sought a longer contract limit and broader scope for outsourcing.",
        "content": "<p>Rules governing outsourced workers have changed after Indonesia\u2019s\nHouse of Representatives (DPR RI) passed the Employment Protection Law.\nThe new provisions cover several areas, including contract limits and\nworkers\u2019 entitlements in the event of termination of employment\n(PHK).<\/p>\n<p>Indonesian Employers Association (Apindo) chairwoman Shinta Kamdani\ncommented on the provisions, saying employers were concerned about\nseveral matters, including outsourcing, future jobs and workforce\ntraining.<\/p>\n<p>One issue Shinta highlighted was the contract limit for outsourced\nworkers. Apindo had previously called for outsourcing arrangements to be\npermitted for up to five years, but the new law sets a maximum of four\nyears.<\/p>\n<p>\u201cWe had put forward our position on outsourcing, for example: we\nasked for it to remain at five years, but that was subsequently\nreduced,\u201d she said.<\/p>\n<p>Under the new rules, an outsourced worker\u2019s initial contract may last\nno more than two years. It may then be renewed twice, for a maximum of\none year each time.<\/p>\n<p>Under this arrangement, the total contract period for an outsourced\nworker can reach four years. This is one of the changes that companies\nand workers will need to note as the Employment Protection Law comes\ninto force.<\/p>\n<p>The types of work that may be outsourced are also addressed in the\nnew rules. Outsourcing is limited to four fields: catering, security,\ncleaning and driving.<\/p>\n<p>Shinta said Apindo had previously expressed its view on which types\nof work should be eligible for outsourcing. In her view, the need for\noutsourced labour is not always limited to support roles.<\/p>\n<p>\u201cBut we have also considered why certain types of work may need to go\nbeyond support functions; we have already conveyed that,\u201d she said.<\/p>\n<p>The Employment Protection Law also grants outsourced workers an\nimportant new right: they are entitled to severance pay if they are laid\noff, in accordance with the applicable provisions.<\/p>\n<p>The new rules therefore address not only companies\u2019 use of outsourced\nlabour but also worker protections. The right to severance pay is one\naspect that must be taken into account in outsourcing employment\nrelationships.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/outsourced-workers-prospects-change-under-new-rules-on-contracts-and-severance-pay-1791449958",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}