Wage Regulation of Outsourced Workers After the Omnibus Law of the Labor Cluster Based on Wage Theory

Abstract

This research investigates the effects of the enactment of the Job Creation Law (Law Number 11 of 2020) in Indonesia on labor regulations, specifically focusing on wage regulation for outsourced workers and its implications for human rights. Employing a normative juridical approach, the study examines legal materials such as laws, regulations, court decisions, and expert opinions. Through qualitative analysis techniques, the pre- and post-Job Creation Law regulations concerning outsourced workers' wages are explored. The findings uncover significant changes in wage provisions, including the elimination of sectoral minimum wage regulations and the reduction in types of wages for outsourced workers. Moreover, the research reveals discrepancies between the Job Creation Law and international conventions' indicators of freedom, availability, accessibility, and suitability. Concerns are raised regarding the adequacy of workers' rights protection, accessibility to fair wages, and the inclusivity of vulnerable groups within the legal framework. This study contributes to understanding the Job Creation Law's implications for labor and human rights in Indonesia, highlighting areas where the law may fail to ensure equitable treatment and fair compensation for outsourced workers. Policy recommendations aimed at upholding human rights standards in labor regulations are proposed based on the study's findings.