Amendments to regulations governing labor outsourcing services

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Through Supreme Decree No. 001-2022-TR, the Peruvian Government has amended part of the regulations governing labor outsourcing services. Said amendments limit outsourcing scenarios by introducing the concept of “core business”.

It is worth mentioning that outsourcing is a type of provision of services whereby a company (i.e., the main company) transfers or delegates one or more parts of its main activity (which are linked to the different stages of the production process of goods and the provision of services) to one or several outsourcing companies, which provide the main company with works or services related or integrated to said main activity.

Below is a comparison of certain key aspects which have been amended with respect to the previous regulations.

Validity and period of adaptation

This regulation requires companies to abide by its provisions in 180 calendar days, counted since February 24, 2022 (i.e., by August 22, 2022). In case of failure to abide by these amendments, the nature of the outsourcing services will be deemed to be distorted, without prejudice to the penalties that may be imposed.

Regarding the prohibition to dismiss employees

During the referred adaptation period, outsourcing companies cannot terminate the employment contracts of the employees who were transferred to perform the activities forming part of the core business, due to reasons related to the adaptation referred to by this regulation, unless such employees are directly hired by the main company.

Recommendations

  • With respect to the main company’s business object, determine its core business in accordance with the new provisions.
  • Review contracts with third parties to identify restrictions, if applicable.
  • Implement the necessary adaptation measures within the period prescribed by the regulation.
  • Continually review service agreements to verify compliance with applicable regulations.

Contact

Carina Dávila, Legal Manager, Business Services & Outsourcing