Within the European Commission and the European Parliament there is a discussion ongoing on limiting the number of subcontracting levels and extending the liability to the entire subcontracting chain. The idea is that by doing so, labour law problems can be avoided.

ELCA, together with SMEunited, is monitoring this topic. Landscape garden companies often work in subcontracting relations for example in taking care for planting trees in a larger road construction project or give assignments to arborists in tree pruning and maintenance work. In a first glimpse on this topic, we are not convinced that limiting the number of subcontracting levels is the solution to labour law problems. We see more merit in looking at the daily public procurement practice in which the division of projects in specific green lots can be a solution to limit the number of subcontracting levels. This is also what we plead for in the current evaluation of the EU Public Procurement Directives. The European Employer’s Institute concludes in a recent study, that there are already several different types of legislative means to address labour law problems in subcontracting chains in existing EU law. From that perspective we would recommend to look at the existing legislative labour framework, instead of taking initiatives on limiting the number of subcontracting levels and extending the liability in the subcontracting chain.

What do you think?
We are curious to hear your opinion. Do you agree with our first glimpse on the topic? Have you points of attention or relevant experiences you want to share regarding subcontracting? Please let us know by sending your reaction to contact@elca.info.