Marco Legal Outsourcing Colombia

On April 8, the government, with the signature of the Minister of Labor, Luis Eduardo Garzón, issued Decree 583, which regulates the general aspects of the administrative sanction of investigations into the outsourcing of illegal work in Colombia. 8. That reference is consistent with the fact that it is possible to transfer workers from the beneficiary to the supplier and that this constitutes unlawful outsourcing only if the rights they had when they were direct. ACTION IN CONTRACTUAL DISPUTE – Rejection SUMMARY OF THE CASE – The public services supervisory authority contends that the Court should: order Mr Germán Silva Villarreal to pay the damage resulting from the alleged infringement of Datum Ltda., of which he was the legal representative, under contract No 158 of 20 December 2000 for the supply. It is important to remember that when the Colombian government negotiated the Labor Action Plan (PAL) with the U.S. government, it indicated that it would prohibit the abuse of worker cooperatives (ATCs) and any other form of relationships that interfere with workers` rights. In other words, it recognized the need for comprehensive and systematic regulation of the phenomenon of illegal outsourcing. Unlike outsourcing, internalization refers to personnel dependent on the company, i.e. people who have a direct employment contract, as opposed to the requirement of companies or external persons, in general, its practice involves hiring new employees, either permanently or temporarily. In principle, the company that outsources its work does not assume responsibility for the work with the workers hired by this number, since the company signs a civil or commercial contract with the supplier of the labor or other, and this third party is the one who has the responsibility with the workers it sends to respect the outsourcing contract.

2, 3, 4, If these elements are present, there is illegal outsourcing, this has not been declared by the courts as indicated in the decree, which are elements to be directed, now that labour standards are violated and wages are not paid – benefits, as provided for in paragraphs 6, 9, How can it be to conduct an investigation and not cause punishment? In this regard, in December 2010, Law 1429 was adopted, which, when recruiting staff by CTA, stipulated in Article 63: “The personnel necessary in an institution and / or a public and / or private company for the development of permanent missionary activities may not be carried out by cooperatives for related work that carry out a placement or in the context of any other type of relationship, that infringes constitutional rights. Legal and benefits enshrined in applicable labour standards”. Did the decision of the Council of State declare the outsourcing of services illegal? No, what the Council of State has done is to declare null and void the definition of outsourcing by Decree 583 of 2016, which regulates Article 63 of Law 1429 of 2010, which invokes, among other things, the exceeding of State functions because it stipulates that it defines something (outsourcing and illegal outsourcing) that was not included in Law 1429 of 2010, This should be regulated. Decision No. 424 of 31. May 2016 on the award of the contract to the outsourcing of Seasin Ltda is clarified The definition of labor outsourcing implied by the decree is: “Labor outsourcing is the process that a beneficiary develops to obtain goods or services from a supplier as long as they meet current labor standards.” It follows that any outsourcing is legal if current labour standards are respected. And to further emphasize the concept, he notes that outsourcing is illegal when “in a public and/or private institution and/or company, two elements coincide: the staff is connected for the development of permanent missionary activities by a provider of those mentioned in this decree, and the staff is connected in a way that touches on constitutional rights, Legal and benefits enshrined in applicable labour standards”. That is, the prohibition of outsourcing missionary and permanent activities will only be illegal and therefore punishable if the form of the commitment affects rights.

Or what is the same thing: any outsourcing of missionary and permanent activities will be legal if it is related to people in a way that does not affect rights. In most cases, outsourcing is used to hire staff through temporary contractors, in these cases extreme caution is recommended because Colombian legislation in Decree 1072 of 2015 establishes some specific cases where outsourcing is illegal, you can read more about the subject in our recommended article. It is also illegal to outsource labor when contracting with unauthorized companies such as CTA or another company that is not a temporary service company. By hiring an outsourcing company, it is possible to invest more concentration in the activities carried out, thus increasing the efficiency of the activities by being able to focus on the tasks that generate revenue. In some cases, the company can become dependent on external partners and lose its own experience, this is never a positive thing, it should be borne in mind that outsourcing service is an advantageous strategy that brings countless benefits, but it is necessary to have an additional plan in case this person stops doing his job or even if the contract is terminated. What cannot happen is that the company remains in the hands of those who hired it. According to the Colombian legal framework, for outsourcing to be legal, outsourcing must meet the following criteria: outsourcing refers more to the processes associated with the management of the company, its main demand is usually related to activities related to information technology, accounting and finance, customer service, human resources and marketing, provided that it is a request addressed to them, who opt for this option.