Government strengthens outsourcing protection through Labour Minister Regulation 7/2026

The policy aims to provide legal certainty, strengthen the protection of workers’ rights, and maintain business continuity. Jakarta (ANTARA) - The government is strengthening protection and legal certainty for outsourcing workers through Ministry of Manpower Regulation (Permenaker) Number 7 of 2026 on Outsourcing Work. Minister of Manpower (Menaker) Yassierli, in his statement in Jakarta on Thursday, said that this regulation is a concrete step by the government to ensure that outsourcing practices operate more fairly and provide clear protection for workers. “This Permenaker is a follow-up to the Constitutional Court Decision Number 168/PUU-XXI/2023, which mandates restrictions on outsourcing work,” said Yassierli. “The policy aims to provide legal certainty, strengthen the protection of workers’/labourers’ rights, and still maintain business continuity,” he added. In addition, user companies 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 outsourced, duration, work location, number of workers, work protection, as well as the rights and obligations of the parties. On the other hand, outsourcing companies are also required to fulfil all workers’ rights in accordance with applicable laws and regulations, including wages, overtime pay, working hours and rest, annual leave, occupational safety and health (K3), health and employment social security, religious holiday allowances, and rights regarding termination of employment (PHK). Yassierli said that this Permenaker also regulates sanctions for user companies or outsourcing companies that do not comply with the established provisions. He invited all stakeholders to consistently and responsibly comply with this regulation, so that all workers/labourers can be protected and obtain legal certainty.