Outsourcing, a practice to debate
Companies outsource to other companies to focus efforts and resources on their core business. Although this is a common practice in the construction sector, a debate has recently arisen as to its suitability. Subcontracting must comply with the requirements stipulated by law, although the limit is easily blurred.
Companies are favoring outsourcing certain services in order to get more out of their core business. The planning of internal training, payroll management or personnel selection are some examples. The construction sector has used this methodology for many years, since the functions of the sector are very broad and it is difficult for a single company to cover them all. The outsourcing of services is not a practice that has emerged in recent years, but its use has increased exponentially.
The reality is that sectors such as IT, cleaning, security and construction are the ones that most use these practices. The decentralization of functions has led to the creation of many companies dedicated exclusively to these specific tasks. In the construction sector, for example, heavy machinery is required for some buildings and companies that do not have them resort to outsourcing.
Subcontracting is a good option to cover sporadic needs that arise for clients, which normally require great expertise, specific materials or special permits.
The problem arises when a company outsourced too much, as it becomes clear that it does not have sufficient or necessary resources to carry out the activity to which it is dedicated. In Spain, each Autonomous Community has specific regulations that determine the percentage of a company's activity that can be decentralized.
The outsourced companies are obligated to comply with the requirements specified in article 43.2 of the Workers Statute. They must have their own stable organization, a specific activity, the means necessary for the development of their activity and exercise the functions of a company. This is intended to ensure that all companies, contractors and subcontractors, have a real business structure.
Contractors are not assigned personnel, but rather the knowledge and skills of the contracted company are made available to them which is responsible for everything related to the worker. If what a company really needs is more labor, without new skills, it should hire a temp agency duly accredited for legal purposes.
Both the hiring and hired companies must comply with the regulations, otherwise they may be sanctioned. In relation to the workers, those who have been illegally assigned will have to choose between one of the two companies and they will be given a permanent contract, and they will equal the salary to that of someone of the same category in the workforce.
This regulation hopes to eradicate the creation of shell companies, a common practice in the construction sector, and that business owners comply with the obligations inherent to their position of superiority, in addition to avoiding leaving workers without guarantees.
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