Implementation of Outsourcing (Transfer) Job Under Labor Law Number 13 Year 2003

DOI

10.2991/978-2-494069-93-0_37How to use a DOI?

Keywords

outsourcing; manpower law; business world

Abstract

Due to business sector rivalry, companies must focus on a series of processes or operations to create goods and services tied to their primary skills. Various market-competitive quality items and services will be produced with a focus on the company’s key skills. In an increasingly competitive business climate, companies are seeking to minimize production costs. One solution is an outsourcing system, which allows the business to save money on financing the company’s human resources (HR). The transfer or delegation of specific company operations to a service provider agency, with the service provider agency completing administrative and management procedures based on the parties’ agreed-upon definitions and criteria, is known as outsourcing. The Manpower Law No. 13 of 2003 (articles 64, 65, and 66) and the Decree of the Minister of Manpower and Transmigration of the Republic of Indonesia No. Kep.101/Men/VI/2004 concerning Procedures Agreement of Employer/Laborer Service Provider Company and Kepmenakertrans govern outsourcing in Indonesia. Job transfers to other parties within the company, according to the study’s findings, must be carried out in accordance with applicable provisions under both Law No. 13 of 2003 and the Minister of Manpower and Transmigration’s decision, and can achieve business goals such as process efficiency and business focus. The processes for implementing the transfer of work to other parties have been thoroughly regulated in Law No. 13 of 2003 and the Decree of the Minister of Transmigration, so that the firm can appropriately transfer work to other parties by referring to these two rules.

Copyright

© 2023 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.

Download article (PDF)

TY  - CONF
AU  - Siswanto Siswanto
PY  - 2023
DA  - 2023/01/25
TI  - Implementation of Outsourcing (Transfer) Job Under Labor Law Number 13 Year 2003
BT  - Proceedings of the 3rd International Conference on Business Law and Local Wisdom in Tourism (ICBLT 2022)
PB  - Atlantis Press
SP  - 302
EP  - 312
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-93-0_37
DO  - 10.2991/978-2-494069-93-0_37
ID  - Siswanto2023
ER  -