Jumat, Juli 7, 2023

Changes to Outsourcing Rules under Job Creation Law Anticipated

As Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang Undang – “Perppu”) No. 2 of 2022 has now been officially adopted through the introduction of Law No. 6 of 2023 on Job Creation (“Law 6/2023”), several provisions previously set out under the original framework of Law No. 11 of 2020 on Job Creation have now been updated, including provisions that address outsourcing, the rights of workers with disabilities and the minimum wage.
In terms of provisions that address outsourcing specifically, Juanda Panggaribuan, a former ad-hoc judge at Indonesia’s Industrial Relations Court, has stated that despite Law 6/2023 specifying that it will limit the scope of the jobs that can be outsourced, employers can currently still engage in outsourcing without any specific limits having to be observed regarding the scope of work, as Regulation of Government No. 35 of 2021 remains valid and applicable.
Moreover, if an implementing regulation to Law 6/2023 is finally introduced and the periods of previous outsourcing work remain effective, then Panggaribuan argues that outsourcing jobs will remain valid until the end of the relevant underlying agreements, after which time, the new provisions on outsourcing matters will subsequently apply.
For more on this story, see Hukumonline: “Mengantisipasi Dampak Perubahan Aturan Outsourcing UU Cipta Kerja”.

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As Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang Undang – “Perppu”) No. 2 of 2022 has now been officially adopted through the introduction of Law No. 6 of 2023 on Job Creation (“Law 6/2023”), several provisions previously set out under the original framework of Law No. 11 of 2020 on Job Creation have now been updated, including provisions that address outsourcing, the rights of workers with disabilities and the minimum wage.
In terms of provisions that address outsourcing specifically, Juanda Panggaribuan, a former ad-hoc judge at Indonesia’s Industrial Relations Court, has stated that despite Law 6/2023 specifying that it will limit the scope of the jobs that can be outsourced, employers can currently still engage in outsourcing without any specific limits having to be observed regarding the scope of work, as Regulation of Government No. 35 of 2021 remains valid and applicable.
Moreover, if an implementing regulation to Law 6/2023 is finally introduced and the periods of previous outsourcing work remain effective, then Panggaribuan argues that outsourcing jobs will remain valid until the end of the relevant underlying agreements, after which time, the new provisions on outsourcing matters will subsequently apply.
For more on this story, see Hukumonline: “Mengantisipasi Dampak Perubahan Aturan Outsourcing UU Cipta Kerja”.

......