Economic Dependency-Based Employment Relations: The Establishment of a Hybrid Category as an Ius Constituendum for Indonesian Gig Workers

Abstract

The rapid development of the gig economy in Indonesia has given birth to a paradox, on the one hand creating millions of job opportunities, but on the other hand perpetuating precarious working conditions under the legal fiction of “partnership”. Employment relationships that substantively contain elements of subordination through algorithmic management have systematically denied gig workers access to basic employment rights. This research aims to move beyond the identification of the problem by designing a concrete regulatory solution. The main focus of the study is to construct a model for a new hybrid legal category, “Economic Dependency-Based Employment Relations”, which is able to strike a balance between worker protection and the flexibility of digital business models. Using normative legal research methods enriched by conceptual approaches and comparative laws, this study formulates a detailed technical proposal. The result of this research is a regulatory construction that rests on three fundamental pillars. First, the Gig Economy Sectoral Minimum Wage Scheme, a dynamic formula that includes components of labor wages, real operating costs, and waiting time compensation. Second, the Tripartite Social Security Scheme, which requires proportional contributions from platforms, workers, and the state for the Employment Social Security Administration program through a digitally integrated mechanism. Third, the Portable Benefits Fund, a flexible paid leave system funded by the platform's mandatory contributions. Collectively, these three pillars form a comprehensive and implementable policy blueprint, offering an ideal middle ground to reform the labor law system to realize decent work for millions of workers in Indonesia's digital economy.