What does the Spanish Subcontracting Law say?

The Subcontracting Law in Spain is mainly regulated by the Workers' Statute and Law 32/2006, of October 18, 2006, regulating subcontracting in the construction sector. The main purpose of this legislation is to establish a clear and precise regulatory framework for subcontracting, ensuring the protection of the rights of subcontracted workers and the joint and several liability of the contracting companies.

According to this law, companies that subcontract works or services must guarantee that subcontracted workers enjoy the same rights and working conditions as those hired directly, including, among other aspects, salary, working hours, social security and occupational risk prevention.

Which companies must be governed by the subcontracting law?

The Subcontracting Law in Spain, Law 32/2006, applies to all companies operating in Spanish territory and involved in subcontracting activities, especially those involved in the construction sector. However, its scope of application is not limited exclusively to this sector.

In general terms, any company that contracts another company for the performance of works or services in its economic activity must be governed by this law. This includes companies in different sectors such as industry, services, logistics, among others. Companies must ensure that subcontracted companies comply with all applicable labor and safety regulations.

It is important to note that the law also affects foreign companies operating in Spain that use local subcontractors for their projects. These companies must comply with the same requirements and obligations as domestic companies to ensure the protection of subcontracted workers and compliance with regulations.

What does this law regulate?

The Subcontracting Law in Spain regulates several key aspects related to the subcontracting of works and services. Among the main aspects it regulates are:

• Labor conditions and workers' rights: The law ensures that subcontracted workers have the same working conditions as direct employees of the contracting company. 
• Joint and several liability: Establishes the joint and several liability of the contracting companies with respect to the labor and social security obligations of the subcontracted companies. This means that, in the event of noncompliance by the subcontractor, the main company may be liable.
• Occupational risk prevention: Obliges companies to ensure that subcontractors comply with occupational risk prevention regulations, including the necessary training and equipment for the safety of workers.
• Register of Accredited Companies (REA): Establishes the obligation for subcontractors to register in the REA in order to be able to operate legally. This registry certifies that the company complies with training and occupational risk prevention requirements.
• Written contracts: The law requires that all subcontracting contracts be formalized in writing, detailing the working conditions and obligations of each party.

When is labor subcontracting considered?

Labor subcontracting is considered when a company (main or contracting company) commissions another company (subcontracting company) to carry out certain works or services that are part of its normal economic activity. This type of agreement may involve the provision of specialized services, the development of specific projects or the performance of auxiliary tasks that complement the main activity of the contracting company.

Labor subcontracting is characterized by the existence of a contract between the main company and the subcontracting company, where the conditions of the work to be performed are specified, including aspects such as the term of execution, price, and occupational health and safety conditions, among others.

It is important to note that, in order to be considered labor subcontracting, the subcontracting company must provide its own personnel and resources for the execution of the work. 

When does illegal subcontracting occur?

• Lack of registration in the REA: If the subcontracting company is not registered in the Register of Accredited Companies, the subcontracting is illegal.
• Inferior working conditions: When subcontracted workers do not receive the same working conditions and wages as direct workers of the main company, it is considered an illegal practice.
• Non-compliance with occupational risk prevention regulations: If the subcontracting company does not comply with the obligations regarding occupational risk prevention, including the lack of adequate training and protective equipment, the subcontracting is illegal.
• Chain subcontracting without justification: The law limits the number of subcontracting levels, especially in the construction sector, to avoid labor casualization. Chain subcontracting without adequate justification is considered illegal.
• False self-employed: The use of self-employed workers who should actually be under a labor contract is also considered a form of illegal subcontracting.

What do companies need to be outsourced?

In order for a company to be legally subcontracted in Spain, it must comply with a series of legal requirements and obligations. 

• Registration in the REA: Subcontractors must be registered in the Register of Accredited Companies, which certifies that they comply with training and occupational risk prevention requirements.
• Compliance with labor regulations: Companies must guarantee that they offer their workers the labor and salary conditions established by applicable legislation and collective bargaining agreements.
• Occupational risk prevention: Subcontractors must comply with all obligations regarding occupational risk prevention.
• Technical and economic solvency: Subcontractors must demonstrate that they have the technical and economic solvency necessary to carry out the works or services contracted.

Complies with regulations using a CAE platform

To facilitate compliance with subcontracting regulations, many companies in Spain use a CAE platform. Dokify offers you the perfect digital environment to manage subcontracting-related regulations.