The Dilemma of Employment Relationship Compared to Partnership of Drivers in Logistics Business: Analytical Study from Contract Law and Indonesian Labor Law

Yayan Hernayanto, Adi Riki Fauzi

2018

Abstract

Supply chain activities is the backbone to run a business especially in the manufacturing industry. However, logistic work is not the core business in their line of business. Therefore, manufacturing companies outsource their logistic activities to outsourcing service providers. Indonesian labor laws covers two types of outsourcing: Business Process Outsourcing and Manpower Outsourcing. In terms of relationship between the outsourcing providers and their workers, the Laws regulates temporary contract and permanent contract scheme for both types of outsourcing, with each terms and conditions. Since outsourcing first introduced in 2003, it has been the most common/ favorable cooperation scheme used to support company's non-core activities. However, it may not be as popular as outsourcing scheme, partnership has also been favorable choice of cooperation scheme under Indonesian contract law. This type of cooperation emphasizes professional relationship between company and workers without engaging any “employment relationship and/ or responsibilities”. In terms of logistic work, partnership nowadays is commonly used by the modern so-called Mobility Service Providers in Indonesia such as Go-Jek, Grab, Uber, etc. Based on latest research, it is recorded as much as 180 thousands drivers have engaged partnership with those mobility service provider. Through this paper, the writers would like to figure out which cooperation scheme is better for logistics work in the company’s perspective as the user. Does the business today against the prevailing provisions? How the best business should be done in term of comply with prevailing regulations.

Paper Citation

in Harvard Style

Hernayanto Y. and Fauzi A. (2018). The Dilemma of Employment Relationship Compared to Partnership of Drivers in Logistics Business: Analytical Study from Contract Law and Indonesian Labor Law.In Proceedings of the International Law Conference - Volume 1: i-NLAC, ISBN 978-989-758-482-4, pages 113-117. DOI: 10.5220/0010053901130117

in Bibtex Style

@conference{i-nlac18,
author={Yayan Hernayanto and Adi Riki Fauzi},
title={The Dilemma of Employment Relationship Compared to Partnership of Drivers in Logistics Business: Analytical Study from Contract Law and Indonesian Labor Law},
booktitle={Proceedings of the International Law Conference - Volume 1: i-NLAC,},
year={2018},
pages={113-117},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010053901130117},
isbn={978-989-758-482-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Law Conference - Volume 1: i-NLAC,
TI - The Dilemma of Employment Relationship Compared to Partnership of Drivers in Logistics Business: Analytical Study from Contract Law and Indonesian Labor Law
SN - 978-989-758-482-4
AU - Hernayanto Y.
AU - Fauzi A.
PY - 2018
SP - 113
EP - 117
DO - 10.5220/0010053901130117