Elimination of Restrictions on the Type of Work in Outsourcing in Indonesia: An Analysis of Workers’ Legal Protection and a Comparative Study with Brazil and Mexico

DOI

10.2991/978-2-38476-491-4_33How to use a DOI?

Keywords

Types of Work; Outsourcing; Legal Protection of Workers

Abstract

This paper aims to analyze the elimination of restrictions on the type of work in outsourcing practices based on Law No. 6 of 2023 from the perspective of worker legal protection. The research method used is normative juridical with a comparative legal approach, using primary legal materials in the form of Law No. 6 of 2023, as well as labor regulations from Brazil and Mexico. The results of the study show that the restriction of the type of outsourcing work functions as a form of preventive legal protection to prevent the abuse of flexible employment relationships. However, the elimination of the restriction clause without being accompanied by implementing regulations actually creates normative ambiguity and increases the risk of job uncertainty. Comparative studies show that Brazil, which legalized outsourcing for all types of work through Lei No. 13.429/2017, has experienced a weakening of workers’ bargaining positions, low levels of work formality, and increasingly extreme labor market segmentation. In contrast, Mexico strictly restricts outsourcing through the 2021 Reform of the Ley Federal del Trabajo, and the result is a significant increase in wages, access to social security, as well as tax compliance levels without disrupting the productivity of the industry. Indonesia is in a more liberalized policy position, but it does not have sufficient legal infrastructure to ensure the protection of outsourcing workers. Therefore, it is recommended that the government immediately issue implementing regulations that set employment limits, strengthen collective legal responsibility, and establish a transparent and effective labor supervision system.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nur Putri Hidayah
AU  - Isdian Anggraeny
AU  - Dwi Ratna Indri Hapsari
AU  - Mutiara Anggun Puspa Insani
PY  - 2025
DA  - 2025/11/18
TI  - Elimination of Restrictions on the Type of Work in Outsourcing in Indonesia: An Analysis of Workers’ Legal Protection and a Comparative Study with Brazil and Mexico
BT  - Proceedings of the 6th International Conference on Law Reform (INCLAR 2025)
PB  - Atlantis Press
SP  - 341
EP  - 353
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-491-4_33
DO  - 10.2991/978-2-38476-491-4_33
ID  - Hidayah2025
ER  -