News April 6, 2017

Learn about the changes brought by the new Outsourcing Law

Sanctioned this past March 31 by the Presidency of the Republic, the New Outsourcing Law (Law 13,429/2017) allows companies to outsource their workforce, including those considered ‘core activities’. In practice, see some of the changes brought by this development.

Previously, there was no specific law. What existed was an interpretation by the Superior Labor Court (TST) that prohibited the outsourcing of a company’s core activity – the one connected to its main business – and allowed contracting for ‘ancillary activities’ – a less clear definition, but one that can be illustrated by the cleaning or gardening activity of a company that produces food, for example.

Now there is unrestricted authorization for the outsourcing of all activities, except those that have a special and specific law, such as domestic work, security companies and the transport of valuables.

 

Labor law – The new outsourcing law guarantees all labor rights to the CLT workers of the service-providing companies. What actually changes is the role of the contracting party with respect to labor obligations, such as the payment of contributions, salaries and benefits.

Previously, the contracting company was jointly liable for the labor obligations that were eventually not borne by the outsourced service provider. In other words, if the worker brought a claim before the courts for any reason, the contracting party and the contracted party were equally answerable to the action.

Now, under the new outsourcing law, the contracting company is liable on a subsidiary basis before the courts, which is to say that, only as a last resort, the contracting party will be called upon to bear any labor debt of the service provider toward its outsourced employee.

 

Moreover – There are still other changes. With the new law, the so-called ‘quaternary outsourcing’ (quarteirização) of services is expressly permitted, that is, the company contracted to provide the services may subcontract other companies to provide them.

Some minimum rules were also created so that companies may provide outsourced services, among them the need to have corporate capital compatible with the number of employees.

Access the Law here.

 

(Sources: Uol, Estadão, planalto.gov.br, Conjur and contabilizei.com.br)

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