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An impact that extends to the entire economy

| News | Employment Law and Social Security

Alfredo Aspra, Employment Law Partner at Andersen Tax & Legal analyses the impact of the outsourcing reform on the economy

The reform proposed by the Executive on subcontracting poses a major problem for the labour market: it points to a cause that was initially laudable (preventing subcontracting from being used to circumvent the conditions agreed in a collective agreement) but, instead of pointing to the specific problem with a precision rifle, it does so with a bazooka. In this way, there is a danger that in an attempt to improve the working conditions of the hotel maids (the Kellys), a model that works for thousands of companies and millions of workers in practically all areas of the economy will be destroyed. This is because the measure proposed by the government at best involves a rise in labour costs and at worst the loss of activity, the judicialisation of employment relations or the relocation of employment abroad.

"This will lead to a rise in the costs of these activities, so that many large companies could end up subcontracting them abroad", warns Alfredo Aspra, Employment Law partner at Andersen Tax & Legal. "Including construction is crazy, because there are many companies that specialize in certain processes," says Federico Duran, Garrigues' advisor and professor of employment law, who also reminds us that this area already has specific legislation on subcontracting.

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