Peru: strong restrictions on labor outsourcing will increase informality and unemployment

18, August

The Peruvian government established infractions and fines in the General Labor Inspection Law. The Ministerio de ...

The Peruvian government established infractions and fines in the General Labor Inspection Law.

The Ministerio de Trabajo y Promoción del Empleo (MTPEE) established a series of measures that appear to go against the strengthening of the various forms of labor outsourcing.
that seem to go against the strengthening of the various forms of work and the promotion of employment.
promotion of employment.
The articles of the decree contemplate, among others, the following points on which the following will be applied.
significant fines:
If labor outsourcing is used to develop activities that form part of the “core
of the business”.
If outsourcing is used for the development of any activity other than the “core business” activities.
core activities
If it is used as a simple provision of personnel
The “core business” is understood as the corporate purpose of the company.
This measure, which denotes a profound ignorance of the concept of work in the 21st century, will have a strong impact on the entire Peruvian economy.
will have a strong impact on the Peruvian economy as a whole.
The ratification, through this decree that toughens the system with heavy fines, of the decree that called for the
the decree that called for the adaptation to a new regime within 180 days (which expires on August 23rd), leaves Peru with a new
August 23), leaves Peru without the figure of the triangular labor relationship between employee/employer/company.
employee/employer/user company, which has proven its efficiency for more than half a century in the creation of more dynamic labor markets.
the creation of more dynamic, more flexible and more formal labor markets.
Informality in Peru is among the highest in the region. 76.8% of workers lack social protection and/or a set of rights.
social protection and/or a set of labor rights. Restrictions of this type can only aggravate the situation.
the situation.
It is estimated that the measure puts at risk more than 70,000 jobs in small companies and more than 40,000 in large companies.
more than 40,000 in large companies. In addition, some 1,000 companies could be forced to close.
close.
Peru should ratify ILO Convention 181 on private employment agencies, generate an efficient public-private
efficient public-private articulation to increase the employability of its workers and, at the same time, to have mechanisms that enable the
mechanisms that enable easy access to the labor market. The data on the contribution of these
The data on the contribution of these organizations to the world of formal employment are convincing. Monitoring
partnership and a strategy of inclusion and formality together with private employment agencies is the formula.
the formula; unfortunately, the Peruvian government seems to have chosen the opposite path.
opposite path.