Understanding Wage Protection for Outsourced Workers

Outsourced workers often face challenges in receiving fair employment rights, including wage protection. Therefore, regulations that govern wage protection for outsourced workers are essential to maintaining their well-being.

This article will discuss how wage protection for outsourced workers is regulated by law, the importance of such regulations, and solutions for companies to ensure their workforce receives the rights they deserve. Let’s dive into the discussion below!

Wage Protection Regulations for Outsourced Workers

Wage protection for outsourced workers in Indonesia is regulated through various laws and regulations. The government has established policies to ensure that outsourcing companies remain accountable for the welfare of their workers.

According to Government Regulation No. 35 of 2021, it is stated that the protection of workers, wages, welfare, working conditions, and disputes arising from employment agreements between outsourcing companies and their workers must comply with the provisions of the applicable laws and regulations. Outsourcing companies are fully responsible for fulfilling their workers' rights.

Additionally, Article 23, Paragraph (3) of Government Regulation No. 36 of 2021 on Wages (PP 36/2021) mandates that companies are prohibited from paying wages lower than the minimum wage set by the government. This ensures that outsourced workers receive fair compensation according to established standards.

Furthermore, Article 66 of Law No. 13 of 2003 and Article 18 (PP 35/2021) emphasize that worker protection, wages, welfare, and working conditions must be outlined in employment contracts and company regulations. This legal certainty ensures that outsourced workers have a solid foundation for securing their rights.

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The Importance of Wage Protection Regulations for Outsourced Workers

Without clear regulations, outsourced workers are vulnerable to exploitation, especially regarding wage payments that do not meet standards. Therefore, wage protection regulations for outsourced workers are vital to safeguarding worker welfare. Here are some key reasons why these regulations are necessary:

1. Preventing Below-Standard Wage Payments

With the provisions in PP 36/2021 requiring companies to pay at least the minimum wage, outsourced workers are protected from unfair low wages.

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2. Providing Legal Certainty for Workers

Clear regulations ensure that every outsourced worker has a legal basis to claim their rights if violations occur, such as delayed wage payments or unjust deductions.

3. Ensuring the Welfare of Outsourced Workers

Proper wage protection directly impacts the welfare of outsourced workers. Receiving fair and timely wages enables them to meet their living needs more effectively.

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4. Reducing Employment Disputes

Clear regulations help minimize conflicts between workers and outsourcing companies regarding wage payments. With binding rules, outsourcing companies are more likely to fulfill their obligations.

5. Enhancing Productivity and Loyalty of Outsourced Workers

Workers who receive proper compensation tend to be more productive and loyal to the company. This benefits both the workers and the companies that employ outsourced labor.

Wage protection for outsourced workers is a mandatory aspect that outsourcing companies must ensure. Compliance with these regulations not only mitigates legal risks but also enhances worker welfare and productivity. Therefore, choosing a professional workforce provider is a crucial step in safeguarding the rights of outsourced workers.

SOS: Trusted Workforce Solutions for Various Industries

Ensuring wage protection for outsourced workers is not just a legal obligation but also a key to business productivity. SOS offers reliable workforce solutions that guarantee fair wages and comprehensive employment protection. With high industry standards, SOS-provided workers deliver optimal performance and improve operational efficiency.

With SOS's output-based labor services, your company only pays for the completed work, resulting in more efficient labor costs. Don’t hesitate to contact SOS to find the best workforce solutions for your business!