Contractor Management
The topic of outsourcing entered the corporate agenda in the early 1990s. Meanwhile, outsourcing had already been implemented in the mid-1980s with considerable success in developed countries.
History of Outsourcing
For over two decades, the practice of outsourcing was primarily guided by Precedent 331 of the TST (Superior Labor Court). However, this precedent restricted outsourcing to so-called non-core activities. This condition was a source of great legal uncertainty, given the interpretative subjectivity and divergences within the judiciary itself.
Changes in outsourcing legislation
Since March 31, 2017, with the enactment of Law 13,429/2017, which regulated outsourcing, we experienced an initial shift in the landscape.
The legislation removed the restrictions on outsourcing and authorized the outsourcing of any defined and specific service. In other words, as long as the company was specialized and the service was defined, there were no longer limits to the practice.
On the other hand, the text of PLC 38/17, approved on July 11, 2017, took another step forward.
Therefore, while the new legislation will drive an increase in outsourcing, it also highlights the need to improve the structuring of contractor management processes. Consequently, the service recipient must establish or enhance its processes for monitoring compliance with labor and social security obligations.
Field monitoring also becomes an essential activity in this process, aiming to:
- minimize losses related to secondary liability;
- enhance its partner chain;
- protect the professionals involved.
Thus, more contractors create a greater need for management and risk prevention.
Conclusion on outsourcing and managing the contractors involved in service provision
Therefore, we are entering a new phase in our labor relations which, depending on the planning and management processes we implement, can generate either opportunities or risks.
In conclusion, supported by Level's proprietary technological solution combined with cognitive intelligence technology, Level Group's Contractor Management solution provides a structured process for preventing administrative and legal liabilities by monitoring contracts, contractors, and compliance with legal obligations, delivering greater safeguards for companies (client and contractor) and for the resources used in providing the services.
