Legal Position of Outsourced Workers after the Enactment of Law Number 11 of 2020 Concerning Job Creation

Abstract

The unclear concept of outsourcing arrangements in the Labor Law has caused uncertainty in the working relationship between the parties associated with outsourcing work agreements. These, namely employers, contracting companies, service-providing companies, and outsourced workers, in turn have caused uncertainty in the protection of workers. In light of the Constitutional Court Decision Number 27/PUU-IX/2011, the Outsourcing Work Agreement in Articles 65 and 66 of the Labor Law is considered unconstitutional. Law Number 11 of 2020 on Job Creation, one of the articles highlighted, concerns outsourced workers. The Job Creation Law allows outsourcing companies to hire workers for various tasks, including casual and full-time workers. The purpose of this community service is to explain the legal certainty of work agreements for outsourced workers after the enactment of Law Number 11 of 2020 concerning Job Creation and the legal position towards the protection of outsourced workers in terms of Law Number 11 of 2020 concerning Job Creation. There are inconsistencies in the regulation of work agreements for outsourced workers that have caused uncertainty in the law after the enactment of Law Number 11 of 2020 concerning Job Creation through its derivative rules by issuing Government Regulation Number 35 of 2021, which contains disharmony in the provisions of the working relationship between outsourcing companies and outsourced workers they employ by requiring them to choose one type of work agreement in the form of a Fixed-Term Work Agreement and an Indefinite-Term Work Agreement that is contrary to the provisions stipulated in Law Number 13 of 2003 and the Decision of the Constitutional Court that has changed the provisions on Work Agreements in the outsourcing system. Law No. 13/2003 and the Decision of the Constitutional Court have changed the provisions on Work Agreements in the outsourcing system. There is no certainty as to the type of work categorized as outsourcing work