Companies draw a route map to face possible changes in outsourcing

Note published on march 11, 2021, on El Economista, section Empresas by María del Pilar Martínez
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Companies have begun outlining different scenarios, among which we find assuming 10% of costs in order to hire workers directly.

In the first three months of this year, and during the wait for changes in subcontracting matters, companies have begun outlining different scenarios, among which we find assuming 10% of costs in order to hire workers directly.

“Companies have considered three scenarios, Plan A, transferring people and assuming the corresponding costs, particularly the cost of Employee Participation in Company Profits, known as PTU; Plan B, the reconfiguration of benefits to compensate the “PTU expense” by adjusting other benefits, and Plan C, terminating personnel”, explained Jorge Sales Boyoli, within the framework of the “Covid Secondary Effects” webinar.
According to Congresswoman Anita Sánchez, there is no draft opinion yet, but the possibility that the reform on subcontracting matters may be approved before April cannot be ruled out; “this is a good moment for companies to conform with the law”, she pointed out.

“All of these companies that have decided to use subcontracting legally, and I believe that this possibility of capping the PTU can aid the bill, and it would also be very helpful if a reasonable term for its entry into force (of the reform) were established; additionally, the authority is already taking actions to persecute those companies that use outsourcing as an undercutting or tax evasion scheme”, added Sales Boyoli.
In turn, Ricardo Martinez Rojas, a labor lawyer, said that there is uncertainty, but a change has already begun to be noticed in companies that have outlined their own strategies, “legislation does not always go hand in hand with reality, companies have to anticipate adjustments, otherwise, they run the risk of being paralyzed.”

They also agreed that a proper vigilance and the persecution of improper conducts are enough; this could contribute to more appropriate and harmonious decisions.

“It is also true that, even in the worst scenarios of this bill, it will take some time and employers will be granted a certain margin, of weeks or months, to react. It is important to recall that this bill was not chosen as a preferential bill and that it has to be discussed in a full session of the House of Representatives and then be sent to the Senate; I believe that this is the margin that will allow companies to react but, in practice, large companies are the ones that have the resources and the necessary conditions to make preventive plans”, stated Boyoli.