The Informal Sector: Employment Dilema and Solution

Abstract

The level of compliance of an employer with Law number 13 of 2003 on Manpower is only 30 out of 100 percent of all work relationships between employers and employees. The paradigm used in this study is called "post-positivism". This research is based on the descriptive analysis. This research is a study that combines both normative legal research (doctrinal) and empirical research (non-doctrinal). The data in this study include both primary and secondary data. This problem is caused because the substance of the manpower law does not differentiate between the ability of individual employers, partnerships or legal entity. The redefinition of work relationship regulated by Law number 13 of 2003 on Manpower, has defined 'working relationship' for both formal and informal sectors, and now has become the right choice for raising the level of compliance by businesses.