That's the thing though. Subcontracting is in reality done to scam workers of their rights.
That is not necessarily true Some country enacted labor law way out of line with common sense and international practice because of weak social service resulting in dearth of investment. Because nobody want to pay for inefficient and unproductive worker. Take example of Indonesia that forced employer to give 50 months severance pay for lay off worker Now which stupid company want to do that? The government want to change to 30 months and they going berserk and burn the tire.
Some country just enact law without thinking just to buy the popularity vote. In order to attract investment you have to have flexible labor law like they say Beggar cannot be choosy
KSPI President Said Iqbal released a statement saying the new law will hurt workers, including by reducing severance pay, removing restrictions on manual labor by foreign workers, increasing the use of outsourcing, and converting monthly wages into hourly wages.
“We reject the entire contents of the omnibus law which is very detrimental to workers,” Mr. Iqbal said. “It must be canceled immediately. The workers are already suffering a lot from the COVID-19 crisis.”
Some academics from prominent universities also expressed disappointment on Wednesday over a law they said was problematic and would likely lead to a judicial review.
Susi Dwi Harijanti of Bandung’s Padjajaran University said the law’s swift passage “shocked everybody” because parliament was usually “slow in making regulations, including the ones that are clearly needed by the people,” according to Reuters.
Indonesia, Southeast Asia’s largest economy, is eagerly courting foreign investors as key drivers of economic growth in a nation where nearly half the population is younger than 30.
Top economic minister Airlangga Hartarto on Wednesday sought to calm protesters and said many of their fears were based on false information, according to Reuters.
“I can assure you wages will not be cut,” he told a virtual news conference.
The Jakarta Post reports that the "government and lawmakers have also agreed to lower maximum severance pay for laid off workers and introduce a new unemployment fund (JKP), which effectively means
. According to the law, employers could pay a maximum of 19 times the monthly salary, and an additional six times the monthly salary will be paid by the government through the JKP scheme."