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Working Conditions: Companies Must be Liable for Subcontractors
added: 2009-02-12

Companies must be responsible for the conditions of workers employed by their subcontractors and an EU legal instrument is needed to make sure this is the case say Members of the EP Employment and Social Affairs Committee, referring to the concept of "joint and several liability".

The rise of subcontracting has had far-reaching consequences for labour relations and sometimes this makes it difficult clearly to determine the branch of law applicable to the relationships between the various elements of a production chain, according to the committee's own-initiative report, drafted by Lasse Lehtinen (PES, FI).

The committee welcomes the fact that eight Member States (Austria, Belgium, Finland, France, Germany, Italy, the Netherlands and Spain) have already responded in their national law to problems connected with the duties of subcontractors as employers. It urges other Member States to consider similar schemes. However, implementing the rules in cross-border subcontracting processes is especially difficult when Member States have different systems in place.

A legal instrument at European level

In the draft directive providing for sanctions against employers of illegal immigrants, currently before Parliament for a first reading, the European Commission introduced into Community legislation the idea of "joint and several liability". This is a "suitable instrument" to ensure that companies are responsible for the practices of their subcontractors, says the report.

MEPs in the committee call on the Commission to establish a clear-cut Community legal instrument introducing joint and several liability at European level, while respecting the different legal systems in place in the Member States. They also want the Commission to launch an impact assessment on the added value and feasibility of a Community instrument on chain liability as a way of increasing transparency in subcontracting processes. Lastly, they believe that the scope of liability in such an instrument should cover at least wages, social security contributions, taxes and damages in relation to work-related accidents.


Source: European Parliament

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