Subcontractors in Spain

A new Law regarding subcontracting in the construction industry came into
force in Spain on 19 April 2007.
The main purpose of this Law is to limit the number of subcontractors on a
construction site. The Law acknowledges that subcontracting is necessary in
order to achieve a good level of productivity, but using an excessive number of
subcontractors, which has been common in Spain, does create some risks.
These risks affect not only the quality of the works, but also the rights of the
workers, particularly regarding health and safety.
The Law establishes a limit of three tiers of successive subcontracting for
specialised activities, and only one tier for labour intensive jobs, with some very
limited exceptions. Companies that breach these limits will be jointly liable for
any damage caused.
Companies acting as contractors or subcontractors should progressively
increase the number of their employees with an indefinite term employment
contract up to a minimum of 30% by 19 October 2009. In addition they must
provide the necessary health and safety education to the employees.
Companies that wish to subcontract or be subcontractors must be registered
with a special registry of the labour authorities and they should keep a so-called
Subcontracting Book.
Trade Unions hope that this Law will reduce the high accident rate in Spanish
labour market. The construction sector currently employs 2.6 million workers
(13% of the Spanish working population).