North Sumatra requests Ministry of Manpower to evaluate problematic outsourcing companies

Medan (ANTARA) - The North Sumatra Provincial Manpower Agency (Disnaker) has requested the Republic of Indonesia’s Ministry of Manpower (Kemenaker) to evaluate problematic outsourcing companies in the region, following findings of various violations that disadvantage workers. Head of the North Sumatra Manpower Agency, Yuliani Siregar, stated that her office has officially written to the central government to follow up on the matter. “We have officially written to the Ministry of Manpower RI to evaluate naughty and problematic outsourcing companies in North Sumatra,” Yuliani said in Medan on Wednesday. The letter, numbered 500.15.12.14 595-6/DISNAKER/IV/2026, is addressed to the Director General of Industrial Relations Development and Labour Social Security at the Ministry of Manpower. Copies were also sent to Minister of Manpower Yassierli, North Sumatra Governor Bobby Nasution, and other relevant parties to encourage joint oversight. “We hope the central government will promptly provide guidance and evaluation steps,” Yuliani said. This request is based on supervision results showing that most labour cases in North Sumatra are dominated by outsourcing companies. “We have also found strong indications that many outsourcing companies do not carry out their obligations in accordance with regulations, from administrative issues to workers’ normative rights,” she explained. Several violations found include administrative negligence, such as not reporting Fixed-Term Employment Agreements (PKWT) to local agencies, which violates provisions in the government regulation on employment, specifically articles 18–20 of Government Regulation No. 35 of 2021 on Fixed-Term Employment Agreements, Outsourcing, Working Hours and Rest Periods, and Termination of Employment. In addition, there are violations of normative rights in the form of wages paid below the District/City Minimum Wage, non-payment of social security, and absence of Holiday Allowance (THR). The North Sumatra Manpower Agency also found unclear employment status due to vendor changes that do not provide legal protection for workers. “Several companies even do not have clear branch offices and are suspected of not paying severance to workers,” Yuliani said. Yuliani emphasised that the evaluation step refers to Law No. 6 of 2023 on Job Creation and Government Regulation No. 35 of 2021. “This evaluation is important to ensure that every outsourcing company in North Sumatra complies with the law and provides protection and decent rights for our workforce,” she stated.