Peru : vote of a law regulating subcontracting

The law regulating outsourcing activities was promulgated b the Peruvian President Alain Garcia after ratification by the Congress despite the discontent of the private sector. The text requires all subcontractor firms to be clearly identified in an official register with a high level of independence from the firms using their services. This measure is intended to prevent firms from setting up their own subcontracting services in order to apply lower wage rates and circumvent workers’ rights. In this respect, the law also compels subcontractor to have more than one client, to have his own financial, technical and material resources and to be responsible for the results of his business operations. Furthermore, its workforce must be entirely under its authority. 
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ices in order to apply lower wage rates and circumvent workers’ rights. In this respect, the law also compels subcontractor to have more than one client, to have his own financial, technical and material resources and to be responsible for the results of his business operations. Furthermore, its workforce must be entirely under its authority.

Joint responsibility. However, one of the most disputed issues of the reform is the requirement of “joint responsibility” of the firms placing orders. The

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