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ILLCA: Ministerial of Manpower Regulations No.11 of 2019 is Not Enough, Outsourcing Must Be Regulated By an Independent Regulation To get more justice

07 October 2019

Ministerial of Manpower Regulations number 11 of 2019 which regulates outsourcing has been published on August 5th, 2019. It contained improvements to the previous regulationswhich added points about workers protection

Today outsourcing still has quite complicated problems, both regarding workers protection, legal certainty or lengthy licensing procedures. Besides that outsourcing is only regulated in 3 (three) Articles in Law number 13 of 2003 (Labor Law), therefore it is not enough to facilitate all parties interests. The Minister of Manpower and Transmigration Regulation number 19 of 2012 released due to urgent conditions, at that time the public needed Regulation of the Minister of Manpower and Transmigration on how to implement outsourcing after Constitutional Court Verdict Number 27. Number 19 of 2012, this is regulated many new things that did not exist in Indonesia before, which requires a guarantee of continuity of employment protection for workers at an outsourcing company (or TUPE-Transfer of Employment Protection). TUPE regulations require employers to use the same outsourcing workers even if the vendors are different. But in the implementation, there are still many weaknesses in these regulations because it still .does not facilitate the interests of all parties. Some rules crash the regulations of the Labor Law

ILLCA considers that one of the purposes of releasing Ministerial Regulation Number 11 of 2019 is correcting the previous Ministerial Regulation in protecting workers and facilities for Outsourcing Companies (vendors) including business licensing for Workers' Providers (PIP). Ministerial Regulation Number 11 of 2019 now includes matters such as (i) affirmation of guarantees for the fulfillment of workers' rights, (ii) sanctions for Outsourcing companies that do not obey the regulations, (iii) provide legal certainty, (iv) shorten the process company licensing (PIP) , (v) online licensing (Online Single Submission), (vi) PIP company can be a legal entity (previously it must be a Limited Company (PT)).

HKHKI hopes that the government and the legislature can immediately make a higher regulation than Ministerial Regulation. Only Ministerial Regulations is not enough, moreover there are rules in Ministerial Regulations contradicting with the Labor Law. Therefore outsourcing must be regulated in more detail and comprehensively in the Law so that it has legal certainty and must be fair to all parties.