{"id":79101,"date":"2013-10-27T18:15:47","date_gmt":"2013-10-27T17:15:47","guid":{"rendered":"https:\/\/gespreobra.com\/news\/the-subcontracting-law-key-aspects\/"},"modified":"2013-10-27T18:15:47","modified_gmt":"2013-10-27T17:15:47","slug":"the-subcontracting-law-key-aspects","status":"publish","type":"post","link":"https:\/\/gespreobra.com\/en\/news\/the-subcontracting-law-key-aspects\/","title":{"rendered":"The Subcontracting Law: Key Aspects"},"content":{"rendered":"

THE SUBCONTRACTING LAW<\/h1>\n

Subcontracting Chains.<\/em><\/h2>\n

The excessive number of subcontracting chains, particularly in the construction sector, allows the participation of companies with hardly any organizational structure to guarantee minimum conditions for the proper fulfillment of the mandatory obligations regarding worker safety and health protection<\/strong>.<\/p>\n

The aforementioned, combined with \u201cpiecework<\/strong>\u201d, bogus self-employment, and precarious employment, made specific regulation of subcontracting necessary, with the aim of controlling these phenomena. <\/p>\n

The Subcontracting Law<\/strong> or Law 32\/2006, of October 18, regulating subcontracting in the Construction Sector<\/a>, introduces a series of solvency and quality requirements for companies wishing to participate in the subcontracting process in the construction sector. It regulates the subcontracting regime, strictly indicating the circumstances under which the subcontracting chain could be extended, introduces the so-called Subcontracting Book, and strengthens the participation mechanisms for worker representatives from the different companies involved in the execution of the work.<\/p>\n

Likewise, the Subcontracting Law introduces modifications to the current Consolidated Text of the Law on Infractions and Sanctions in the Social Order, approved by Royal Legislative Decree 5\/2000, of August 4, establishing an adequate classification of administrative infractions that may arise from non-compliance with its provisions.<\/p>\n

For its part, Royal Decree 1109\/2007, of August 24, develops Law 32\/2006 in four points: the Register of Accredited Companies, the Subcontracting Book, the rules for calculating percentages of permanent workers, and the documentary simplification of obligations established for construction works in the legal system.<\/p>\n

The Subcontracting Law primarily establishes three types of measures to regulate subcontracting in construction. Firstly, a series of quality and solvency requirements are determined<\/strong> that all companies and professionals participating in the subcontracting chain must meet. For this purpose, a Register of Accredited Companies (hereinafter REA) is established, dependent on the competent labor authority of each autonomous community with legal effects throughout the state.<\/strong> <\/p>\n

Secondly, a new regime for its ordering and limitation is established<\/strong>. In this regard, it is prohibited, for example, for a third-tier subcontractor or a self-employed professional to subcontract. Subcontracting is also limited in the case of \u201cintensive subcontractors\u201d<\/strong>, i.e., subcontractors who only provide labor and hand tools, including portable motorized ones, necessary for carrying out the contracted activity. <\/p>\n

Thirdly, it is worth noting that specific transparency and special documentation requirements are added to the entire subcontracting process<\/strong>. For example, contractors are obliged to have a Subcontracting Book,<\/strong> which must remain on site at all times and where all subcontracts carried out on the site until its completion must be recorded. This aims to promote work quality and ensure compliance with health and safety regulations. <\/p>\n

\"Subcontracting
Subcontracting Chain according to the Subcontracting Law<\/figcaption><\/figure>\n

What is understood by subcontracting?<\/em><\/h2>\n

The form of productive organization by virtue of which the contractor or subcontractor entrusts another subcontractor or self-employed worker with part of what has been entrusted to them. This commercial practice is established in a series of steps which are the so-called subcontracting levels. <\/p>\n

The subcontracting regulations apply whenever subcontracting contracts are entered into, in both the private and public sectors, for execution within a CONSTRUCTION WORK.<\/p>\n

A \u201cConstruction Work<\/strong>\u201d is defined, according to RD 1627\/1997, on minimum safety and health provisions in construction works, as \u201cany work, public or private, in which construction or civil engineering work is carried out, whose non-exhaustive list includes:<\/em><\/p>\n