Research Article
Problems with Providing Compensation for Outsourced Workers Based on Law Number 6 of 2023 concerning Job Creation
@INPROCEEDINGS{10.4108/eai.25-5-2024.2349348, author={Lubna Lubna and Boy Nurdin}, title={Problems with Providing Compensation for Outsourced Workers Based on Law Number 6 of 2023 concerning Job Creation}, proceedings={Proceedings of the 4th International Conference on Law, Social Sciences, Economics, and Education, ICLSSEE 2024, 25 May 2024, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2024}, month={8}, keywords={problematics compensation outsourcing labor}, doi={10.4108/eai.25-5-2024.2349348} }
- Lubna Lubna
Boy Nurdin
Year: 2024
Problems with Providing Compensation for Outsourced Workers Based on Law Number 6 of 2023 concerning Job Creation
ICLSSEE
EAI
DOI: 10.4108/eai.25-5-2024.2349348
Abstract
Law Number 6 of 2023 on Job Creation mandates vendor companies to compensate outsourced workers, but its implementation faces significant challenges. A major issue is the discrepancy between legal requirements and actual practices, with many vendor companies failing to provide compensation due to costs, ambiguous provisions, or inadequate supervision. This results in uncertainty and injustice for agency workers. Additionally, many outsourced workers lack awareness of their rights, leaving them vulnerable to exploitation. To address these issues, legal protections for outsourcing workers must be strengthened through strict enforcement against non-compliant vendor companies. Collaboration between the government, trade unions, and companies is essential to establish effective monitoring and enforcement mechanisms, ensuring the protection of agency workers' rights. Advocacy and outreach are also crucial to educate workers about their rights and support those facing difficulties in claiming compensation. By enhancing enforcement and awareness, a fairer and more just work environment that respects outsourced workers' rights can be achieved, aligning with the spirit of Law Number 6 of 2023 on Job Creation.