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DFA Law Firm
Office in Yogyakarta, serves Patehan, 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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Outsourcing arrangements in Patehan: when legal advice can help

Patehan is a kelurahan in Kraton, Yogyakarta City. Labor outsourcing issues can arise for local hotels, guesthouses, restaurants, event operators, and businesses using cleaning, security, maintenance, or other support services.

National Indonesian employment rules apply in Patehan; there is no separate Patehan outsourcing code. A lawyer can review whether the service arrangement, provider, employment contracts, wages, and worker protections comply with those rules. Employment disputes generally begin with direct negotiations and may proceed to mediation through the relevant manpower office.

When a lawyer may be useful

  • A hotel or guesthouse near the Kraton is changing cleaning or security providers, and workers are unsure whether their employment or accrued rights will continue.

  • A restaurant or event operator receives a claim for unpaid wages, overtime, holiday pay, or social security contributions involving workers supplied by a vendor.

  • A local business is preparing an outsourcing agreement and needs to clarify the service scope, responsibilities, pricing, and allocation of employment risks.

  • A worker is told that a contract will end when a vendor changes, although the same work will continue under a replacement provider.

  • A business faces a manpower-office inquiry or inspection concerning contracts, payroll records, or the provider’s legal status.

  • A worker or employer cannot resolve a termination or other employment dispute through direct discussions and needs help preparing for mediation.

Indonesian laws that govern labor outsourcing

Law No. 13 of 2003 on Manpower, as amended by Law No. 6 of 2023 on Job Creation. This is the principal manpower statute. Law No. 6 of 2023, effective from 31 March 2023, enacted Government Regulation in Lieu of Law No. 2 of 2022 and changed parts of the manpower framework, including outsourcing rules.

Government Regulation No. 35 of 2021. This regulation addresses fixed-term employment agreements, outsourcing, working time and rest time, and termination of employment. It sets requirements for outsourcing arrangements and related employment protections.

Law No. 2 of 2004 on the Settlement of Industrial Relations Disputes. This law provides the process for resolving employment disputes. It requires an attempt at bipartite negotiations before a dispute proceeds to a manpower agency for a settlement process such as mediation.

Frequently asked questions

Is there a special outsourcing permit for businesses in Patehan?

There is no separate Patehan permit or local outsourcing code. The applicable requirements are national, including rules on the provider’s legal status, business licensing, and written agreements.

Who is the employer when a worker is supplied by an outsourcing provider?

The provider generally employs the supplied worker under an employment agreement. The client business and provider should clearly allocate their responsibilities in the outsourcing agreement, but that agreement cannot remove rights guaranteed by employment law.

Can a business outsource any type of work?

The answer depends on the work, the agreement, and the current implementing rules. A lawyer can check whether the proposed arrangement fits the applicable requirements rather than assuming every role can be outsourced.

What documents should an outsourcing arrangement include?

The business and provider should have a written outsourcing agreement defining the services and each party’s responsibilities. The provider must also use a written employment agreement with each worker, on fixed-term or indefinite-term terms as legally appropriate.

What happens to workers when a service provider changes?

A change of provider does not automatically answer whether a worker’s employment continues. For certain fixed-term arrangements, the rules require protection for continuity of workers’ rights when the provider changes but the work remains; the contracts and facts should be reviewed.

Are outsourced workers entitled to wages and other employment protections?

Yes. Outsourced workers retain applicable statutory employment protections, including rights concerning wages and working time. The precise entitlements depend on the worker’s contract, duties, and circumstances.

How should an outsourcing employment dispute start?

The parties must first try to resolve the dispute through bipartite negotiations. If those talks fail, a party can register the dispute with the manpower agency responsible for the relevant workplace and seek the appropriate settlement process.

How long can the first stage of a dispute take?

Bipartite negotiations may run for up to 30 working days under Law No. 2 of 2004. Later mediation or court proceedings can take additional time, depending on the dispute and the parties’ participation.

How much does an outsourcing lawyer in Patehan cost?

There is no fixed local tariff. Fees may depend on whether the work involves a contract review, negotiation, mediation, or court proceedings, so request a written fee scope and payment schedule before hiring.

How is an employee different from an independent contractor?

An employment relationship is governed by manpower rules and the worker’s employment agreement. Calling someone a contractor does not by itself determine their legal status; the actual working arrangement and applicable rules matter.

Can a worker get legal help without paying a lawyer’s full fees?

A person who cannot afford legal services may check eligibility with an accredited legal aid provider under Indonesia’s legal aid framework. Availability and eligibility depend on the provider and the applicant’s circumstances.

Official resources

  • Yogyakarta City Manpower Office: The city manpower agency can provide information on local employment services and handle workplace dispute referrals, including mediation through its authorized officials.

  • Yogyakarta Special Region Manpower and Transmigration Office: The provincial office is a resource for regional manpower administration and labor inspection matters.

  • Ministry of Manpower of the Republic of Indonesia: The ministry publishes national manpower information and regulations relevant to outsourcing and employment rights.

Steps to find and hire an outsourcing lawyer

  1. Identify the issue. Write down whether you need a contract review, advice about worker rights, help with a provider change, or dispute representation. Allow a day to organize the facts.

  2. Collect key documents. Gather outsourcing and employment agreements, payroll records, work schedules, messages, and any notices from a provider or manpower office. Redact sensitive personal information when making initial inquiries.

  3. Shortlist local employment-law practitioners. Look for lawyers who handle Indonesian manpower and industrial-relations matters and can assist in Yogyakarta City. Confirm that the proposed lawyer, not only the firm, will handle the work.

  4. Ask about relevant experience and approach. Discuss the documents involved, the likely negotiation or mediation route, and any deadlines. A first consultation can often be arranged within several days, depending on availability.

  5. Compare written fee proposals. Ask what is included, how additional work is charged, and whether travel or filing expenses are separate. Do this before authorizing substantive work.

  6. Agree on the engagement in writing. Confirm the scope, fees, communication arrangements, and who will act for you. If a dispute is already underway, ask the lawyer to promptly check procedural requirements and the next applicable deadline.

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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.

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