Copyright Holder: This Article is Licensed Under: © Nobella Indradjaja and Chamdani Chamdani. (2023) Corresponding author’s email: 21041001@student.uwp.ac.id Journal of Governance Risk Management Compliance and Sustainability, Vol. 3 No. 1 (2023) https://doi.org/10.31098/jgrcs.v3i1.1378 Legal Protection for Outsourced Workers/Laborers Towards Diploma Detention Policy Committed by The Employer Nobella Indradjaja 1* , Chamdani Chamdani 2 1,2 Wijaya Putra University, Indonesia Received : February 23, 2023 Revised : April 14, 2023 Accepted : April 28, 2023 Online : April 30, 2023 Abstract The massive development in business and the economy has provided new opportunities for the people in Indonesia, especially with the dream of improving careers and wages. However, at the same time, the recruiting system aiming to get the best workers is so complex that even it creates a new system called outsourcing. Unfortunately, this system has a few disadvantages for workers, especially concerning diploma detention cases. This study aims to analyze the legal protection for outsourced workers/laborers in Indonesia. This research uses the normative legal research method. The legal material secondary to this study is literature dealing with research problems. For processing the data, a conceptual approach and a statutory approach are used, and then descriptive research is used to produce a descriptive analysis. Although the issue of diploma detention is not commonly discussed in Indonesia, it can be said that the core of this problem is the minimum knowledge of the law and regulations. Thus, legal protection based on Indonesian Law and Regulation for the outsourced workers/laborers should be openly socialized to all outsourced workers/laborers. To limit the scope of this study, the analysis concerns to analyze the legal protection for outsourced workers/laborers in Indonesia based on the applicable law. The novelty of this research study is to provide a better idea and understand the possibility of criminal sanction for employers as one Legal Protection form for outsourced workers/laborers. Keywords: Employment Agreement; Legal Protection; Outsourced Workers INTRODUCTION Outsourcing Workers/Laborers in the globalization era are highly needed by all business segments to support their business flows. These changes occur not only in the sector of commodity demand but also in forming new business terms. Outsourcing is often discussed and disputed. Outsourcing is a term that combines the word "out" and "source" (Kunarti, 2009). Black's Law Dictionary defines an outsourcing agreement as "an agreement to handle substantially all of a party's business requirement, especially in the areas of data processing and information management" (Bryan A. Garner, 1999). Outsourcing is an alternative for many corporations, considering the increasingly competitive environment, especially with the market (customer's) demand for a quick and flexible response. These types of demands often overwhelm the companies due to the lacking competence of the staff and human resources. Therefore, outsourcing becomes a great solution for some people, especially business owners. Outsourcing is a business sector that assigns a job previously handled internally to another company (a company that provides outsourcing laborers), as a means to achieve results from the needed service/job. Based on Muhaimin Iskandar, the Minister of Manpower and Transmigration, there are approximately 6.239 outsourcing companies with 338.505 workers in Indonesia (DetikFinance, 2012). Most of these companies are members of the Indonesian Outsourcing Association (known as Asosiasi Bisnis Alih Daya Indonesia or ABADI). These emerging numbers of outsourcing companies represent not only the huge demands for outsourcing manpower but also the positive outlook for business growth in Indonesia. This kind of practice is even reviewed by The Harvard Business Review as the most important idea and management practice in the last 75 years. Looking back, in Indonesia, this system was introduced by Megawati Soekarnoputri, the fifth President of Indonesia, through The Manpower Act Number 13, 2003 (Idris, 2020). The recent regulation that Articles Review