How Are the Rights of Outsourced Workers Protected in Indonesia?

Outsourcing practices in Indonesia often create various problems for workers. Although the aim is to improve company efficiency, in practice many outsourced workers do not receive their rights adequately. One of the main problems is the lack of clarity in the employment relationship. Outsourced workers often do not know who is responsible for fulfilling their rights, whether the service provider company or the user company.

As a result, rights such as a decent wage, social security, and welfare are often neglected. Government Regulation Number 35 of 2021 affirms that the user company is obliged to fulfill the rights of outsourced workers, including social security and appropriate wages. In addition, wage disparity is a problem frequently experienced by outsourced workers. Outsourced workers generally receive lower wages than permanent workers who perform similar work.

Yet under Article 59 of the Manpower Law and Article 64 of Government Regulation No. 35 of 2021, the user company must ensure that outsourced workers receive equal normative rights, including the religious holiday allowance (THR) and health insurance. In practice, however, many companies still ignore these obligations. The government therefore needs to strengthen supervision and enforce firm sanctions against companies that do not comply with these provisions.

Another problem often faced by outsourced workers is uncertainty over employment status. Many outsourced workers are bound by fixed-term employment agreements (PKWT), so they have no guarantee that their employment will continue. Government Regulation Number 35 of 2021 provides that when the service provider company changes, outsourced workers must continue to have their rights protected.

If the new user company or service provider does not guarantee continuity of employment, they remain responsible for fulfilling the workers' rights. This provision is an important step in maintaining job stability for outsourced workers. To address these problems, outsourced workers need an adequate understanding of their rights as regulated in the Manpower Law and Government Regulation No. 35 of 2021.

Under Article 18 paragraph 3 of Government Regulation No. 35 of 2021, the service provider company (outsourcing company) remains responsible for ensuring the fulfillment of workers' rights, including wages, welfare, working conditions, and the resolution of disputes that arise. Accordingly, the service provider company is also directly responsible for fulfilling the rights of outsourced workers in accordance with the prevailing laws and regulations.

One step that can be taken is to report violations of their rights to the Manpower Office (Dinas Ketenagakerjaan) or the Industrial Relations Court (PHI). If the company is proven not to have met its obligations, workers are entitled to claim their rights through legal channels. Workers can also fight for their rights by joining a labor union that can provide legal support.