New Labour Regulation: Rights of Outsourcing Workers

The government has established several rights that outsourcing or alih daya workers must receive from the company. These provisions are regulated in Ministerial Regulation on Employment (Permenaker) Number 7 of 2026 on Outsourcing Work. The regulation was issued on Thursday (29/4/2026), one day before Labour Day 2026. Under this Permenaker, the government requires companies to include several rights of outsourcing workers in the Outsourcing Agreement. These rights include wages, overtime pay, working hours and rest periods, rights to occupational safety and health (K3), annual leave, social security, religious holiday allowances, and rights regarding the termination of employment relations or layoffs (PHK). “The Principal Employer is responsible for ensuring that the Outsourcing Company fulfils the protection and rights of outsourcing workers/employees at least in accordance with the provisions of the legislation,” states the regulation. Through this Permenaker, the government also limits outsourcing contracts to only certain fields of work. These include cleaning services, provision of food and beverages, security, provision of drivers and worker transportation, operational support services, and auxiliary work in the mining, oil, gas, and electricity sectors.