Best Outsourcing Lawyers in Ubud

How labor outsourcing works for Ubud employers and workers

In Ubud, hotels, villas, restaurants, spas, and event businesses may use outside providers for services such as cleaning, security, maintenance, or transport. The arrangement usually involves a business receiving the service, a provider responsible for supplying it, and workers employed by that provider.

Indonesian national employment law applies in Gianyar Regency, including Ubud. Local tourism or business permits do not replace employment requirements. A written service agreement and written employment terms should clearly identify responsibilities for wages, benefits, working time, supervision, and workplace safety.

Before signing or changing providers, check the provider’s legal status and applicable business licensing, the workers’ employment terms, and any protections that apply if the service continues under a new provider. The legal position can depend on the contract, the actual working arrangement, and current rules on which work may be supplied through a provider.

When a labor lawyer can help in Ubud

• A hotel or villa is considering an outside housekeeping or security provider and needs to review the service contract, employment terms, and allocation of workplace responsibilities.

• A restaurant, spa, or event business is replacing a service provider and needs to assess whether workers’ existing employment protections must continue.

• A worker in Ubud has not received agreed wages, overtime pay, holiday allowance, social security coverage, or other employment rights from a provider.

• A provider or client disputes who employed or supervised a worker, or who must respond to a complaint about working conditions or termination.

• A business faces a manpower-office complaint or an industrial-relations dispute and needs help with negotiations, mediation, or court proceedings.

• A company wants to end a service contract or reduce staffing and needs advice on notice, employment termination, and any compensation due to affected workers.

Local laws overview

• Law No. 13 of 2003 concerning Manpower, as amended, including by Law No. 6 of 2023. Law No. 6 of 2023 took effect on 31 March 2023. The amended framework covers employment relationships and labor supplied through another company.

• Government Regulation No. 35 of 2021 took effect on 2 February 2021. It sets rules on fixed-term employment, labor outsourcing, working time, rest periods, and termination of employment.

• Law No. 2 of 2004 concerning the Settlement of Industrial Relations Disputes provides the process for bipartite negotiations, government-facilitated dispute resolution, and proceedings before an Industrial Relations Court.

On 31 October 2024, the Constitutional Court issued Decision No. 168/PUU-XXI/2023, including a direction for the government to determine types and fields of work that may be outsourced. Because implementing rules can affect a particular service arrangement, obtain current advice before relying on an older contract or template.

Frequently asked questions

What does labor outsourcing mean under Indonesian law?

It generally means a company obtains work or services through another company that supplies workers. The supplying company is responsible for the workers’ employment relationship under the applicable agreement and employment rules. The contract and the real working arrangement both matter.

Does a Ubud business need a lawyer before hiring a service provider?

There is no general rule requiring a lawyer for every service contract. Legal review is useful when the work involves regular staffing, significant worker supervision, a provider change, or uncertainty about current limits on outsourced work.

Can a hotel or villa outsource housekeeping or security?

The answer depends on the service, the applicable rules, and how the arrangement operates in practice. Have a lawyer check current implementing requirements, the provider’s status and licensing, and the written agreements before workers start.

Who is the employer of an outsourced worker?

Usually, the provider that employs and supplies the worker is the employer. The client business may still have workplace duties, and the parties’ responsibilities should be assessed from the law and the facts, not just the contract label.

What should a written service contract cover?

It should identify the services, work location, duration, payment, supervision, safety responsibilities, and procedures for complaints or changes. It should also address worker protections and what happens if the provider changes while the same work continues.

What happens to workers if the client changes providers?

Indonesian rules provide for protection of workers’ rights in certain provider-change situations where the work continues. Whether those protections apply depends on the facts and agreements, so workers and businesses should review the transition before it occurs.

What can a worker do about unpaid wages or benefits?

The worker can raise the issue in writing with the employer and keep contracts, payslips, schedules, and messages. If direct discussions fail, the worker can seek assistance from the relevant manpower office and consider the industrial-relations dispute process.

How are labor disputes usually handled?

The parties generally must first attempt bipartite negotiations. If they do not reach agreement within the statutory period, a party can register the dispute with the local manpower authority for the applicable conciliation or mediation process, and some disputes may proceed to the Industrial Relations Court.

How long can a labor dispute take?

Timing depends on the dispute type, the parties’ cooperation, and whether court proceedings follow. Bipartite negotiations have a statutory limit of 30 working days; later stages can add further time.

What does it cost to hire a labor lawyer in Ubud?

Fees vary by lawyer, urgency, and whether the work is contract review, negotiation, mediation, or litigation. Request a written scope and fee proposal, including any separate expenses, before engagement.

Can a foreign-owned or foreign-managed business use a local provider?

A business operating in Ubud can consider a local service provider, but its own business permissions and the provider’s legal status and licensing should be checked. Foreign-worker rules may also apply if foreign nationals will perform work in Indonesia.

Official resources

• Dinas Tenaga Kerja Kabupaten Gianyar handles local manpower services and can provide information about employment complaints and dispute procedures in Gianyar Regency.

• Indonesia’s Ministry of Manpower (Kementerian Ketenagakerjaan) is responsible for national employment policy and publishes employment regulations and guidance.

• Industrial Relations Court at Denpasar District Court hears eligible industrial-relations disputes after the required preliminary settlement process.

Next steps for choosing and hiring a labor lawyer

1. Gather the documents. Collect service and employment agreements, company and provider details, payroll records, schedules, and relevant messages. Allow one to three days if records are readily available.

2. Define the immediate issue. Decide whether you need contract review, advice about worker rights, negotiations, or help with a formal dispute before contacting lawyers.

3. Find lawyers with Indonesian employment-law experience. Ask local business contacts or professional networks for referrals, and look for experience with Bali or Gianyar matters and service-provider arrangements.

4. Arrange an initial consultation. Ask how the lawyer would assess the facts and current outsourcing rules, and whether the lawyer has handled similar provider changes or manpower disputes. This can often be arranged within a week.

5. Compare written proposals. Confirm the work included, expected milestones, fees, expenses, and who will handle communications or attend meetings.

6. Check the engagement terms and act promptly. Sign a written engagement agreement and ask the lawyer to identify any deadlines, negotiation steps, or documents needed before taking action.