Effective Labor Outsourcing and Policy Implementation: A Description of Indonesia's Labor Relations

Abstract

This study is motivated by outsourcing labor and issues in implementing the labor relations law in Indonesia; therefore, it aimed to review the existing literature regarding outsourcing laws/regulations/policies, legal protection in outsourcing and human rights, and highlight/discuss the legal issues regarding outsourcing employment and suggest recommendations. A qualitative meta-analysis review concept and a normative juridical approach have been used to collect secondary data from various books, journals, regulatory regulations, institutional reports, research, and the Internet. Moreover, this research used a systematic literature search methodology to collect relevant secondary data from the Scopus database. The analytical findings revealed that although outsourcing is a practice that provides a certain level of efficiency in business operations, it harms workers' interests due to the lack of implementation of labor laws, i.e., minimum wages, job security, insurances, contract renewal facility, etc. Hence, there is a dire need to implement laws regarding the legal protection of outsourced workers and make the organizations self-responsible for their outsourced workers. Moreover, the Omnibus labor laws passed on 5 th October 2020 during the COVID-19 by the Indonesian National Legislature seem a ray of light for the outsourced labor.