Outsourcing Work System

In Law No. 13 article 65/02 of 2003 concerning employment, it is mentioned that several types of work can be carried out by outsourcing employees, one of which can be done separately from the main job so as not to hinder the production process or supporting activities of the company. Thus, service provider workers (outsourcing) can only be employed not from the core of their work but rather employed as a side job. Permenaker article 17 UU 2012 mentions several businesses, including cleaning service workers, security guards, couriers, and facility management officers.

Changes to Job Restrictions Through Outsourcing

In the Job Creation Law, articles 64 and 65 of the Employment Law are repealed, and article 66 is amended. Outsourcing is the term used to describe outsourcing more precisely. An outsourcing company is a company in the form of a legal entity according to PP No. 35 of 2021 concerning (PKWT), outsourcing, working hours and rest, and (termination of employment). In addition, they must complete certain tasks according to the contract agreement agreed upon with the company providing the work.

Outsourcing Work System according to the Manpower Law

Companies can broadcast some of their other work through a written work outsourcing agreement or worker or laborer service provider, as stated in Law No. 13 of 2003 Article 64. Therefore, workers employed through the outsourcing system are carried out by the outsourcing company itself without direct involvement from the employer, in accordance with Law No. 35 of 2021. The employment contract for outsourcing employees is divided into two according to the Manpower Law.

  1. Fixed-Term Employment Agreement (PKWT)
  2. Permanent Employment Agreement (PKWTT)