ABSTRACT

Globally, businesses require outsourcing both for labor dispatching/labor supply and for job undertaking/job supply to offer flexible employment to support government efforts to lower unemployment and increase production efficiency, especially amid recession. After 2010, Indonesian labor unions have demanded the abolishment of outsourcing and temporary contract work due to the fear of employment abuse. However, this movement has created difficulties for employers and the outsourcing industry, at times harming trade and investment. These conflicting interests have raised social justice issues. In this paper, whether Indonesian outsourcing regulations promote a sense of justice in the legal system or not is analyzed, and to creative work to construct a new justice paradigm is suggested. The research employed shows that outsourcing is intensely needed in Indonesia; however, the prevailing regulation is not giving sense of justice for all players. Through the doctrinal legal research and legal comparative approach applied in a micro-level examination of how regulations and laws in the developed countries found that it is necessary for the government to establish more flexible regulations of outsourcing that can provide justice to all players.