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DFA Law Firm
Office in Yogyakarta, serves Bantul, Indonesia

Founded in 2018
30 people in their team
Indonesian
English
Media, Technology and Telecoms Outsourcing AI Law & Regulation +3 more
The law firm “DFA LAW FIRM”, Advocates and Legal Consultants, was established in 2016 pursuant to Decree of the Minister of Law and Human Rights of the Republic of Indonesia No. AHU-0000153-AH.01.18 of 2018. Although the law firm “DFA LAW FIRM” was officially established in 2018, “DFA LAW...
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When a labor outsourcing lawyer can protect your position in Bantul

In Bantul, labor outsourcing issues can arise when a business uses an outside company to supply workers or perform part of its operations. This may involve manufacturing, food production, workshops, retail, hospitality, or other local businesses. The legal questions usually concern who employs the worker, which company must meet employment obligations, and whether the written agreements match the working arrangement.

National employment rules apply in Bantul. A lawyer can review the service contract and employment documents, explain which party is responsible for wages and other rights, and help with a complaint or negotiation. For pay disputes, the applicable Bantul minimum wage should be checked for the relevant year.

Situations where legal advice may be useful

Consider consulting a lawyer if a labor outsourcing arrangement has led to any of these problems:

  • A worker at a Bantul factory, workshop, food business, or shop is unsure whether the supplier or the host business is responsible for unpaid wages, overtime, or leave.
  • A supplier changes, but workers continue doing the same work and are asked to sign new contracts that appear to reduce their existing rights.
  • A worker receives a fixed-term contract without clear terms, or believes the work should not be treated as temporary.
  • A host business is ending a service contract and the parties disagree about notice, outstanding payments, or responsibility for termination compensation.
  • A company hiring outsourced services wants to check whether the provider’s agreement and employment documents comply with Indonesian rules before work begins.
  • A worker or company has tried to resolve an employment dispute directly but needs help preparing for mediation through the labor authorities.

National rules that apply to Bantul labor outsourcing

Law No. 13 of 2003 on Manpower, as amended by Law No. 6 of 2023 on Job Creation. The amended law provides the national framework for employment and labor outsourcing. Law No. 6 of 2023 was promulgated on March 31, 2023, and amended the Job Creation framework following earlier changes.

Government Regulation No. 35 of 2021 on Fixed-Term Employment Agreements, Outsourcing, Working Time and Rest Time, and Termination of Employment. Promulgated on February 2, 2021, this regulation sets out implementing requirements for outsourcing arrangements and employment terms. Written agreements and workers’ protections are important when reviewing a particular arrangement.

Law No. 2 of 2004 on Industrial Relations Dispute Settlement. This law governs the formal route for employment disputes, including direct bipartite negotiations and later dispute-resolution steps. Bantul disputes use this national process, with local labor authorities involved in the relevant stages.

Frequently asked questions

What does labor outsourcing mean under Indonesian employment law?

It generally involves a company assigning part of its work to another company under a written agreement. The worker’s employment relationship is ordinarily with the outsourcing company, while the host business receives the contracted service. The documents and actual working arrangement should both be reviewed.

Can a Bantul business use outsourced workers?

Businesses in Bantul may use labor outsourcing subject to national employment requirements. The parties should document the service arrangement and ensure workers receive the protections required by law. A lawyer can check whether the proposed contract and employment terms fit the actual work.

Who is responsible for paying an outsourced worker?

The outsourcing company is generally the worker’s employer and is responsible for employment obligations under the employment relationship. The host business may also face legal or contractual issues depending on the facts and agreements. A review of both the service contract and the worker’s documents can clarify potential responsibility.

What happens if the outsourcing provider changes but the work continues?

The change may raise questions about continuity of work and protection of workers’ rights. The employment documents and service agreement should be checked, including any terms dealing with a change of provider. Workers should keep copies of old and new contracts, payslips, and written notices.

Can an outsourced worker challenge a fixed-term contract?

A worker may seek advice if the contract’s duration or terms appear inconsistent with the applicable rules or the work performed. Whether a challenge is justified depends on the contract, the nature of the work, and the facts. A lawyer can assess the documents before the worker takes formal steps.

How does a labor dispute usually begin in Bantul?

The parties must first try to resolve the dispute through bipartite negotiations. Under Law No. 2 of 2004, this stage may run for up to 30 working days. If it fails, the dispute can be recorded with the appropriate labor office for the next resolution stage.

Where can an employment dispute go if negotiation fails?

Depending on the dispute and the required procedure, the parties may proceed to mediation or another statutory settlement route. An unresolved dispute may be brought to the Industrial Relations Court at the Yogyakarta District Court. A lawyer can help identify the correct claim and prepare supporting evidence.

How long can an outsourcing dispute take?

The duration depends on the dispute, the parties’ willingness to negotiate, and the formal route required. Bipartite negotiations are limited to 30 working days under the statute, and statutory mediation has its own timetable. Court proceedings may take longer, so no overall completion date can be guaranteed.

How much does an outsourcing lawyer in Bantul cost?

There is no single statutory fee for hiring a private lawyer. Fees depend on the work involved, such as a contract review, negotiation, mediation assistance, or court representation. Ask for a written engagement agreement stating the scope, fee basis, and any additional expenses.

What documents should I bring to a first consultation?

Bring the employment contract, outsourcing service agreement if available, payslips, attendance or overtime records, social security information, and relevant messages or notices. A dated summary of events can help the lawyer identify the main issue. Keep copies and avoid altering original records.

Can a worker complain directly to the labor office?

A worker can seek information or submit an employment dispute through the relevant labor authorities. The formal process generally requires an attempt at bipartite settlement first, so keep evidence of meetings and written proposals. A lawyer can help confirm the correct filing steps for the dispute.

Official resources in Bantul and Yogyakarta

  • Dinas Tenaga Kerja dan Transmigrasi Kabupaten Bantul: The local labor and transmigration office can provide information on employment matters and the local route for handling labor complaints and disputes.
  • Dinas Tenaga Kerja dan Transmigrasi Daerah Istimewa Yogyakarta: The provincial labor office provides employment-related services and information for the province, including matters relevant to Bantul.
  • Pengadilan Negeri Yogyakarta: Its Industrial Relations Court hears qualifying employment disputes that proceed to court after the required settlement stages.

Steps to find and hire a labor outsourcing lawyer

  1. Identify the issue and your role. Within a day, write down whether you are a worker, outsourcing provider, or host business, and what outcome you need.
  2. Collect the key records. Over the next one to three days, gather contracts, payment records, notices, work schedules, and evidence of negotiations.
  3. Shortlist lawyers who handle Indonesian employment disputes. Ask whether they have handled labor outsourcing, fixed-term contracts, or industrial relations disputes in Bantul or Yogyakarta.
  4. Arrange an initial consultation. Send a concise factual summary and ask the lawyer to identify the legal issues, possible procedures, and urgent deadlines.
  5. Compare scope and fees before appointing anyone. Request a written engagement agreement that explains the work, fee basis, expenses, and who will handle negotiations or hearings.
  6. Agree on the first action and timetable. Confirm whether the next step is a written demand, bipartite negotiation, labor-office filing, or court preparation, and keep copies of every submission.

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Disclaimer:

The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.

We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.