17-06-2025
Law banning subcontracting faces many challenges
Tunisia recently passed a law regulating employment contracts and prohibiting labor sub-contracting in certain sectors. The law aims to combat job insecurity and ensure workers receive stable, permanent contracts.
Former Employment Minister Hafedh Laâmouri acknowledged that several issues have emerged since the law's enactment but stressed that solutions are possible.
In an interview with Express FM, he noted that most insurance companies lack formal employment contracts, as do businesses operating on shift schedules.
He added that the law faces difficulties in security and cleaning sectors, where workers would become direct employees of the companies they serve, making replacements during absences more complicated.
Laâmouri added that many companies struggle to interpret and apply the law, leading to a wave of layoffs. While no law can cover every scenario, he emphasized that adjustments are feasible.
The minister stated that 'the law on work contract organization and sub-contracting bans attempts to balance worker protections with business interests, but it imposes significant costs on companies that previously benefited from sub-contracting.'
The Subcontracting Ban Law, which came into force in May 2025, is a new law that regulates employment contracts and prohibits subcontracting. Its purpose is to strengthen labor relations and guarantee employees' rights.
According to many experts, this law eliminates forms of subcontracting that are detrimental to workers and establishes a direct relationship between employees and the companies benefiting from their services.
Furthermore, Hafedh Laâmouri believes that this law provides an opportunity to revise collective agreements in light of its provisions without contradicting them while considering the particularities of various sectors.
On another note, he stated that the dismissal of several employees in the private sector could be explained by a misinterpretation of the law, with many employers fearing an increase in the wage bill.
Laâmouri therefore ruled out the possibility of an increase in unemployment, which stood at 15.7% in the first quarter of 2025.
Conversely, the expert predicts that this figure will decrease during the last quarter of 2025. This is because, in his view, employers will realize the need to guarantee job security for employees affected by the new law, who are in permanent employment.
He also said that subcontracting companies operating in the security and cleaning services sectors have complied with the provisions of the new law to avoid penalties.
Finally, he dismissed rumors that implementing regulations were already in place, stating that a circular would be published to guide labor inspectors in uniformly applying the law.
It should be noted that on May 21, Parliament adopted a new law regulating employment contracts and limiting subcontracting.
The law, known as the 'subcontracting ban law', imposes penalties, including potential prison sentences, on individuals who hire under sub-contracting agreements.
It replaces fixed-term contracts with permanent contracts, though certain exceptions are permitted.
The Tunisian General Labor Union (UGTT) has highlighted numerous shortcomings and loopholes in the new legislation and warned of its potential repercussions for workers.
According to the government, the purpose of this law is to prevent fixed-term employment contracts, eliminate the subcontracting of labor, and guarantee the right to permanent and stable employment.
The government asserts that these objectives are in line with the Tunisian state's social vision.
