RECONSTRUCTION OF THE PROVISIONS OUTSOURCING

Abstract

U.s. outsourcing arrangement does not formally exist in Law 13/2003 on employment, the interpretation of the provisions of Article 64-66 jo. Article 59 of Law 13/2003, jo. Decision of the Constitutional Court No. Jo. 27/PUU-IX/2011 has become a "social conflict." Hence devising a regulatory mechanism for the practice of outsourcing is urgent to resolve the current labor problems in Indonesia. Using normative legal research methods, this paper finds that the absence of a precise definition of outsourcing leads to two different formulations of the notion contrary to the elements of a work contract. Article 1 of Law No. 15 defines a typical work relationship as a relationship between employers and workers/laborers under a labor agreement that complies with the cumulative elements of work, wage and order. Inconsistency between this definition and the legal effects of outsourcing impacts the already weak position of workers, which may be argued to be a modern form of slavery, in the outsourcing relationship. This paper recommends that reforms in outsourcing should address ambiguities in the identification of legal persons and the formulation of their rights and obligations in order to clarify the who shall be legally responsible for the protection and implementation of workers ' rights in an outsourcing arrangement. 

Keywords : legal protection, outsourcing