Logo RF White

Outsourcing Workers Violate Rules and Regulations? Here’s What Outsourcing Companies Do!

Outsourcing workers are individuals employed by outsourcing companies (labor providers) to perform specific tasks or jobs at their client companies. In Indonesia, the legal basis for outsourcing is regulated under Article 66 of the Indonesian Republic Law Number 13 of 2003 concerning Manpower. However, if outsourcing workers violate rules and regulations, particularly at the client’s company, to what extent will the outsourcing company be involved and responsible for the issue? To get a complete explanation, let’s delve into this article.

Company Actions for Outsourcing Workers Violating Rules and Regulations

Outsourcing work contracts typically include clauses related to rights, obligations, and responsibilities, covering the actions the outsourcing company will take in case of violations by outsourcing workers at the client’s company. These actions include:

1. Case Review

 When an outsourcing worker breaches the client’s rules and regulations, the outsourcing company will conduct a thorough review of the case. This review may involve gathering reports, evidence, and information about the violation from various sources. The goal is to understand the context and details of the incident comprehensively.

2. Information Triangulation

After the initial review, the outsourcing company will perform information triangulation or collect perspectives from each party involved. These parties include the outsourcing worker who committed the violation, the client company’s user, and the Human Resources (HR) department of the outsourcing company itself.

The purpose of this triangulation process is to ensure the accuracy and objectivity of the information. Additionally, it helps the outsourcing company get a clear picture of the violation. The details of the information triangulation process are as follows:

  1. Employee

The outsourcing company listens to the explanation from the involved worker to understand their perspective and the reasons behind their actions. This also aims to assess whether the violation was due to an inadvertent mistake, thus still allowing for correction, or otherwise.

  1. Client (User)

Next, the outsourcing company will also listen to the client’s explanation regarding the impact of the violation on their operations and any other consequences that arose.

  1. HR (Outsourcing Company)

After hearing from both parties, the HR team of the outsourcing company will evaluate the violation committed by the employee and the actions to be taken in response to the violation.

3. Warning and Reprimand Actions

If the violation committed by the employee can be remedied, the outsourcing company will take two actions:

  1. Issuing a Warning Letter: The employee who committed the violation will receive an official warning letter. This letter outlines the consequences that will follow if a similar violation occurs in the future.
  2. Direct Reprimand: In addition to the warning letter, the employee will also receive a direct reprimand from the management of the outsourcing company. This reprimand aims to raise the employee’s self-awareness, so they can correct their mistakes and act more cautiously in the future.

4. Criminal Acts and Legal Processes

If the violation committed by the employee is classified as a criminal act, the outsourcing company will take stricter actions, such as:

  1. Contract Termination: The outsourcing company will immediately terminate the employment contract with the employee who committed the criminal violation to protect the client and the company.
  2. Legal Process: Based on discussions with the client, the outsourcing company may also bring the violation case to legal proceedings if necessary.

5. Provision of Replacement Workers

In the event of a contract termination due to the violation, the outsourcing company is obligated to provide a replacement worker for the vacated position. This is aimed at maintaining a good relationship and demonstrating the outsourcing company’s commitment to client satisfaction.

In essence, no matter how minor the violation committed by an outsourcing worker, the client company will still experience negative impacts from the issue. Therefore, choosing a professional, competent, and trustworthy outsourcing company is key to minimizing the risk of violations by the recruited outsourcing workers.

If your company is interested in utilizing Outsourcing Services, RecruitFirst Indonesia is here as the right solution! Not only are we experienced, but our team also has a very high commitment to quality and integrity.

Before recruitment, we gather information from various sources and accurate references regarding candidates’ identities, education, work experience, as well as digital footprint and criminal history checks.

Thus, it is ensured that the employees we recruit are individuals of high quality, both in terms of skills and behavior, given they have undergone a very stringent selection process.

So, what are you waiting for? Let’s work together, contact us now!

Can Companies Extend Employees at Pension Age?

In Indonesia, the retirement of employees at pension age in the private sector is regulated by law. Government Regulation (PP) No. 45 of 2015 on the Implementation of the Pension Program initially set the retirement age at 56. However, pension age increases by one year every three years, up to a maximum of 65 years. Thus, by 2024, the retirement age for private-sector employees is set to be 58. Despite this, many companies still wish to extend the employment of employees at pension age. Is this possible?

Regulations on Extending Employees at Pension Age

Generally, companies follow regulations concerning employees at retirement age. However, there is flexibility for contract employees. Companies can often continue employing employees who have reached retirement age as long as they are on a contract basis. In contrast, permanent employees who reach retirement age according to the regulations must change their status to a contract role to continue working.

Why Companies Choose to Extend Employees at Pension Age

Several factors drive companies to retain employees who have reached retirement age, including:

Experience and Knowledge

Long-serving employees possess in-depth knowledge that is difficult to replace with new hires.

Trust and Loyalty

Senior employees often have high levels of trust with management and clients.

Strategic Roles

Senior positions, such as directors or commissioners, are frequently filled by long-serving employees who may then be given annual contracts.

Maintaining Security and Complicity for Employees at Pension Age

Companies can provide additional compensation to employees working beyond retirement age, such as annual performance bonuses or special compensation. This is to maintain the enthusiasm and motivation of senior employees.

To ensure the security and engagement of employees who have surpassed retirement age, companies can:

Follow Regulations

Ensure all procedures and policies comply with government regulations.

Communicate Clearly

Provide one-year notice if a contract is ending, allowing employees to prepare.

Develop Skills

Offer training to update their skills to remain relevant and productive.

Challenges of Extending Employees at Pension Age

Companies may face several challenges in retaining senior employees, such as:

Decreased Performance

As employees grow older, it is possible that their performance may gradually decline.

Health Risks

Older employees may encounter increased health risks, which can subsequently affect their overall productivity and work performance.

Difficulty Adapting to New Technology

Senior employees from older generations may find it more challenging to familiarize themselves with modern technologies that are essential for today’s work.

Opportunities in Extending Employees at Pension Age

However, retaining senior employees also presents advantages, such as:

Stability and Continuity

Senior employees can provide stability and continuity in company operations.

Mentorship

They can act as mentors to younger employees, sharing valuable knowledge and experience.

Strong Relationships and Networking

Senior employees usually have established close relationships with other employees and a broader network. This can benefit the company in terms of collaboration with external parties to achieve business success.

Comprehensive Understanding of Regulations

The long tenure of senior employees means they are very familiar with the company, especially in relation to regulations. Consequently, they are more likely to comply with existing laws and policies.

Reducing Recruitment Costs

By retaining senior employees, the company can minimize expenses that might be incurred in hiring and training new employees. Companies looking to leverage the experience and expertise of senior employees should consider regulations, compensation, and strategies for maintaining engagement and security. With the right approach, businesses can maximize the potential of senior employees while ensuring efficient and productive operational continuity.

As an outsourcing company, we can help you optimize the contract for employees at pension age. Contact us now and find the best solutions for managing your employees’ tenure. WIth the experiences and expertise of RecruitFirst Indonesia, we will ensure that the transition process runs smoothly and according to your company’s needs.