Government reinforces protection for outsourced workers with new regulation
Minister of Manpower Yassierli said in a statement here on Thursday that the regulation is a concrete step by the government to ensure that outsourcing practices are implemented more fairly and provide clear protection for workers.
“This ministerial regulation is a follow-up to Constitutional Court Decision No. 168/PUU-XXI/2023, which mandates restrictions on outsourced work,” Yassierli said.
“This policy aims to provide legal certainty, strengthen the protection of workers’ rights, and at the same time maintain business continuity,” he added.
Under the regulation, the government explicitly limits the types of outsourced work to specific areas, namely cleaning services, food and beverage services, security services, driver provision and worker transportation, operational support services, and supporting work in the mining, oil and gas, and electricity sectors.
In addition, employers that outsource part of their work to outsourcing companies are required to have a written agreement. The agreement must at least include the type of work being outsourced, duration, work location, number of workers, labour protection, as well as the rights and obligations of the parties.
Outsourcing companies are also required to fulfill all workers’ rights in accordance with laws and regulations, including wages, overtime pay, working hours and rest periods, annual leave, occupational safety and health, social security for health and employment, religious holiday allowances, and severance pay rights.
“Through this regulation, the government reaffirms its commitment to continuously promote harmonious, transformative, and fair industrial relations with the spirit of advancing industry and ensuring worker welfare,” Yassierli said.
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Translator: Arnidhya, Kenzu