Legal Counseling in Outsourcing

Outsourcing is a form of contracting that enables companies to carry out their business objectives. This contracting entails various benefits for the contracting entity, such as access to specific services and knowledge, cost reduction, and externalizing responsibilities for the outsourced activity.

From the perspective of Labor Law, outsourcing may imply certain risks for the contracting company, depending on how this relationship is carried out.

The main risk of contracting outsourcing services is when the contracted service provider does not demonstrate sufficient capital or organizational autonomy. In this case, the outsourcing company could be classified as an “intermediary”, which would cause both the beneficiary company of the service and the provider to be jointly and severally liable for the various consequences that may arise from the employment relationship. These contingencies include work risks, compensation (minimum wage, overtime, holiday and vacation pay, etc.), and non-compliance with social security obligations.

The specialist lawyers of our firm are prepared to provide counseling before and during the contracting of outsourcing services to provide the greatest legal certainty and minimize the risks associated with this type of contract. The above is carried out through advice and the creation of strict control policies to verify the financial, organizational, and reputational reports of the service provider companies before and during the hiring process.

Likewise, our professionals will make recommendations on the good practices that should be implemented during the service provision contract to strengthen the organizational independence between the company receiving the service and the personnel of the outsourcing company. The preceding, to prevent judicial or administrative claims that may represent a contingency for the contracting company derived from a possible joint and several liabilities in the event of legal breaches that the workers allege and the authorities declare.

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