Sittings · Document

OPINION (2025/2133(INI)) 2025-11-13

On addressing subcontracting chains and the role of intermediaries in order to protect workers’ rights

Committee on the Internal Market and Consumer Protection · Rapporteur: José Cepeda

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AMENDMENTS

The Committee on the Internal Market and Consumer Protection submits the following to the Committee on Employment and Social Affairs, as the committee responsible:

Amendment 1

Motion for a resolution

Citation -1 a (new)

Motion for a resolutionAmendment
– having regard to Articles 16 and 31 of the Charter of Fundamental Rights of the European Union,

Amendment 2

Motion for a resolution

Citation 4 a (new)

Motion for a resolutionAmendment
– having regard to Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement1a, ______________ 1a OJ L 94, 28.3.2014, p. 65, ELI: http://data.europa.eu/eli/dir/2014/24/oj.

Amendment 3

Motion for a resolution

Citation 4 b (new)

Motion for a resolutionAmendment
– having regard to Directive (EU) 2024/1760 of the European Parliament and of the Council of 13 June 2024 on corporate sustainability due diligence and amending Directive (EU) 2019/1937 and Regulation (EU) 2023/28591a, ______________ 1a OJ L, 2024/1760, 5.7.2024, ELI: http://data.europa.eu/eli/dir/2024/1760/oj.

Amendment 4

Motion for a resolution

Citation 5 a (new)

Motion for a resolutionAmendment
– having regard to the Commission green paper of 31 January 2013 on unfair trading practices in the business-to-business food and non-food supply chain in Europe (COM(2013)0037),

Amendment 5

Motion for a resolution

Citation 8 a (new)

Motion for a resolutionAmendment
– having regard to the Sixth European Working Conditions Survey,

Amendment 6

Motion for a resolution

Citation 18 a (new)

Motion for a resolutionAmendment
– having regard to the Commission communication of 29 January 2025 entitled ‘A Competitiveness Compass for the EU’ (COM(2025)0030),

Amendment 7

Motion for a resolution

Citation 18 b (new)

Motion for a resolutionAmendment
– having regard to the report by Mario Draghi of 9 September 2024 entitled ‘The future of European competitiveness’ (the Draghi report),

Amendment 8

Motion for a resolution

Recital A

Motion for a resolutionAmendment
A. whereas labour exploitation and abuse in the EU labour market constitutes a widespread and urgent challenge, manifesting under various terminologies, including but not limited to work-related crime, undeclared work, the grey economy, social dumping, labour exploitation and modern slavery;A. whereas labour exploitation and abuse in the EU labour market constitutes a challenge and negatively affects the internal market by creating an unfair playing field;

Amendment 9

Motion for a resolution

Recital A a (new)

Motion for a resolutionAmendment
Aa. whereas subcontracting is an expression of the freedom to conduct a business enshrined in Article 16 of the Charter of Fundamental Rights of the European Union; whereas, in the context of a market economy, any form of business organisation is lawful, provided that it is exercised in accordance with EU law and national laws and practices;

Amendment 10

Motion for a resolution

Recital A b (new)

Motion for a resolutionAmendment
Ab. whereas companies, particularly small and medium-sized enterprises (SMEs) and microenterprises, do not always have all the required technical expertise, know-how, tools or infrastructure available in-house to address specific challenges in relation to their core business;

Amendment 11

Motion for a resolution

Recital A c (new)

Motion for a resolutionAmendment
Ac. whereas subcontracting is an important element of the employment landscape, particularly for SMEs and microenterprises; whereas subcontracting can help companies and public sector bodies to address specific needs and provide technical expertise; whereas subcontracting can encourage specialisation, which has economic benefits;

Amendment 12

Motion for a resolution

Recital A d (new)

Motion for a resolutionAmendment
Ad. whereas European companies are currently facing enormous global economic pressures, and EU regulators and Member State governments have highlighted the importance of addressing declining EU competitiveness as a priority;

Amendment 13

Motion for a resolution

Recital B a (new)

Motion for a resolutionAmendment
Ba. whereas in 2024, the International Labour Organization (ILO) reported that the total annual illegal profits from forced labour in Europe were the highest in the world1a;
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1a Article published on 19 March 2024 on ILO website entitled ‘Annual profits from forced labour amount to US$ 236 billion, ILO report finds’.

Amendment 14

Motion for a resolution

Recital C a (new)

Motion for a resolutionAmendment
Ca. whereas reliance on non-standard forms of employment and complex cross-border arrangements can blur workers’ rights and employers’ responsibilities and further complicates awareness, monitoring and enforcement of labour laws and applicable collective agreements;

Amendment 15

Motion for a resolution

Recital E

Motion for a resolutionAmendment
E. whereas subcontracting is a well-functioning and important practice in many sectors, facilitating access to specialised expertise; whereas long and complex subcontracting chains can, however, increase risks related to fraud, criminal infiltration, the occupational health and safety of workers, and to unfair competition for enterprises, especially small and medium-sized enterprises (SMEs);E. whereas subcontracting is a well-functioning and important practice in many sectors, facilitating access to specialised expertise, and is especially important for SMEs to thrive; whereas long and complex subcontracting chains can, however, increase risks related to fraud, criminal infiltration, the occupational health and safety of workers, and to unfair competition for enterprises;

Amendment 16

Motion for a resolution

Recital E a (new)

Motion for a resolutionAmendment
Ea. whereas subcontracting is a useful business practice that allows companies to access specialised expertise and respond to demand fluctuations in a cost-effective manner;

Amendment 17

Motion for a resolution

Recital E b (new)

Motion for a resolutionAmendment
Eb. whereas, in certain cases, a lack of transparency and oversight in extended subcontracting arrangements can make it more difficult for contracting authorities to ensure compliance with applicable EU and national law;

Amendment 18

Motion for a resolution

Recital F

Motion for a resolutionAmendment
F. whereas some Member States have adopted legislation limiting the length of subcontracting chains in certain sectors; whereas the Commission considers a limitation to the levels of subcontracting and the extension of subcontracting liability to the full chain as a good practice for Member States; whereas there are also enterprises that have voluntarily restricted the length of their subcontracting chains;F. whereas some Member States have adopted legislation limiting the length of subcontracting chains in certain sectors, although with varying degrees of success and implementation; whereas there are also enterprises that have voluntarily restricted the length of their subcontracting chains;

Amendment 19

Motion for a resolution

Recital G

Motion for a resolutionAmendment
G. whereas the practice of labour intermediation is not defined in law and can take many forms, ranging from larger established companies to individual recruiters, informal brokers and even gangmasters;G. whereas the practice of labour intermediation is not defined in law and can take many forms, ranging from larger established companies to individual recruiters or informal brokers; whereas improving the competitiveness of businesses and the proper functioning of the single market are strategic priorities, while the importance of protecting workers’ rights through decent, inclusive and fair working conditions should be recognised;

Amendment 20

Motion for a resolution

Recital G a (new)

Motion for a resolutionAmendment
Ga. whereas legal disparities and weak law enforcement can mean that multiple layers of subcontracting dilute responsibility and can increase the risk of labour law violations and hinder effective law enforcement;

Amendment 21

Motion for a resolution

Recital G b (new)

Motion for a resolutionAmendment
Gb. whereas in sectors with widespread subcontracting, the practice of ensuring that workers maintain their rights and working conditions when transferred as a result of a change in contractor is essential to protect employment stability, guarantee health and safety standards, and prevent social dumping;

Amendment 22

Motion for a resolution

Recital G c (new)

Motion for a resolutionAmendment
Gc. whereas unfair trading practices, including purchasing below the cost of sustainable production, imposing short lead times and making late payments, are identified as key factors driving unauthorised subcontracting;

Amendment 23

Motion for a resolution

Recital G d (new)

Motion for a resolutionAmendment
Gd. whereas SMEs often participate in public contracts via subcontracting, and can suffer when the main contractors make late payments;

Amendment 24

Motion for a resolution

Recital I

Motion for a resolutionAmendment
I. whereas the process of regulating subcontracting chains and labour intermediaries at national level can be lengthy and difficult for Member States, not least due to legal ambiguities stemming from internal market rules;I. whereas the process of regulating and monitoring the legal compliance of subcontracting chains and labour intermediaries at national level varies significantly from one Member State to another;

Amendment 25

Motion for a resolution

Recital I a (new)

Motion for a resolutionAmendment
Ia. whereas decent work is not only a matter of employment and social protection, but also of governance, which must include dialogue with social partners at all levels of the global chain and at all stages of the production processes in the single market;

Amendment 26

Motion for a resolution

Paragraph -1 (new)

Motion for a resolutionAmendment
-1. Acknowledges that in order to have a competitive and socially fair internal market, it is necessary to ensure both the freedom to provide services and the protection of workers; stresses that subcontracting may generate added value for contracting authorities, enhance efficiency and innovation, particularly in sectors exposed to global competition, by allowing the inclusion of specialised SMEs, and can be a strategic lever for staying competitive and adapting to a rapidly changing economic environment; stresses that subcontracting can allow for the creation of employment, particularly in specialised areas, and help to reduce the costs of large contracts and infrastructure development; stresses, further, that it can allow SMEs to participate in procurement processes for large contracts; recalls that the freedom to conduct a business, as enshrined in Article 16 of the EU Charter of Fundamental Rights, includes the right to engage in an economic or commercial activity, freedom of contract and free competition, in accordance with EU law and national laws and practices; recalls, furthermore, that fair and just working conditions, as enshrined in Article 31 of the EU Charter of Fundamental Rights, include the right to working conditions which respect health, safety and dignity, among other things;

Amendment 27

Motion for a resolution

Paragraph -1 a (new)

Motion for a resolutionAmendment
-1a. Recalls that the EU needs to preserve and enhance its competitiveness and be a place where businesses can thrive, both within the EU and on the global stage; stresses the importance of the Commission’s competitiveness compass as a new roadmap to restore the EU’s dynamism and boost its economic growth; highlights, in this regard, that improving the competitiveness of businesses and the proper functioning of the single market are strategic priorities, while also recognising the importance of protecting workers’ rights through decent, inclusive and fair working conditions;

Amendment 28

Motion for a resolution

Paragraph 1

Motion for a resolutionAmendment
1. Stresses the need for a comprehensive European approach to labour exploitation in general, and abusive forms of subcontracting and labour intermediation in particular, and calls, therefore, for a European strategy to combat labour exploitation;1. Stresses the need to tackle abusive forms of subcontracting across the EU while promoting competitiveness and SME participation in the economy; highlights the Commission’s commitment to present a fair mobility package in 2026 within the single market strategy; calls on the Commission to support Member States in sharing best practice concerning subcontracting; emphasises that enforcing current rules, ensuring better cooperation between Member States and providing targeted support for labour inspectorates are essential to addressing many of the concerns and ensuring fair practices in subcontracting; adds that any abuse, fraud or violation of labour and social legal requirements in the context of subcontracting should be sanctioned effectively;

Amendment 29

Motion for a resolution

Paragraph 2

Motion for a resolutionAmendment
2. Regrets the lack of legal clarity as regards the possibility for Member States to regulate long and complex subcontracting chains; calls on the Commission to clarify that Member States are not prevented by EU internal market rules from adopting legislation to address long and complex subcontracting chains, including requiring direct employment relationships in high-risk sectors, where feasible and justified by evidence;2. Takes note of the fact that only some Member States regulate long and complex subcontracting chains; calls on the Commission and the Member States to take measures to address illegal practices in subcontracting chains in order to ensure business competitiveness and fair and safe working conditions in these chains, including, where feasible, proportionate and supported by evidence, encouraging direct employment relationships in high-risk sectors, in the light of overriding reasons of public interest, namely the protection of workers and their rights, and provided that such measures do not create unjustified obstacles to the free movement of goods and services within the single market; stresses that the identification of national high-risk sectors should be the responsibility of the Member States, following consultations with the most representative social partners;

Amendment 30

Motion for a resolution

Paragraph 3

Motion for a resolutionAmendment
3. Reiterates its call11 on the Commission to consider a framework directive to address the challenges related to abusive forms of subcontracting and labour intermediation in Europe and for this framework directive to introduce a general legal framework, limiting subcontracting and ensuring joint and several liability throughout the subcontracting chain, as well as to introduce measures regulating the role and responsibilities of labour intermediaries, other than temporary work agencies;3. Reiterates its call11 on the Commission and the Member States to address the challenges related to abusive forms of subcontracting and labour intermediation in Europe, providing the necessary transparency and considering joint and several liability throughout the subcontracting chain, especially in cross-border business; recalls, in addition, that while ‘horizontal subcontracting’ can often bring benefits, such as allowing companies to take on larger projects or ensuring collaboration between companies, in certain circumstances, if misused, it can also lead to the circumvention of liability and oversight, which is a form of abuse that must be addressed;
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11 Resolution of 13 March 2025.11 European Parliament resolution of 13 March 2025 on social and employment aspects of restructuring processes: the need to protect jobs and workers’ rights (OJ C, C/2025/3156, 20.6.2025, ELI: http://data.europa.eu/eli/C/2025/3156/oj ).

Amendment 31

Motion for a resolution

Paragraph 4

Motion for a resolutionAmendment
4. Emphasises that national and regional policies to limit the levels of subcontracting have often been initiated jointly by social partners, including SME representatives; calls on the Commission to put forward proposals for setting a general rule limiting subcontracting to a maximum of two levels below the main contractor for sectors with a high risk of labour exploitation; stresses that the identification of national high-risk sectors and the establishment of a process for deviating from the general rule, where duly justified, should be the responsibility of Member States in cooperation with social partners;4. deleted

Amendment 32

Motion for a resolution

Paragraph 5

Motion for a resolutionAmendment
5. Notes that the increasing use of subcontracting for core business activities can lead to fragmented workplaces and greater exposure of workers to longer hours, lower wages and job insecurity; calls, in this regard, on the Commission to ensure equal treatment for equal work and to promote direct employment in sectors where such risks occur;5. Stresses that subcontractors in the EU are often SMEs or craftspeople; recognises that subcontracting can provide flexibility for companies and opportunities for specialised SMEs in supply chains, thereby helping these SMEs, sole traders, and mobile, self-employed workers to thrive and creating a dynamic and innovative market for providers; notes that long and complex subcontracting chains for core business activities can increase risks of exposing workers to labour and social law infringements when a lack of transparency and clear responsibilities prevents the effective enforcement of the applicable rules; recalls, in this regard, the need to ensure equal treatment for equal work, fair working conditions and safe environments for all workers;

Amendment 33

Motion for a resolution

Paragraph 5 a (new)

Motion for a resolutionAmendment
5a. Emphasises that the EU has adopted a number of legal acts aiming at combating labour exploitation and illegal work, and that the application of these acts at the national level needs to be improved; calls on the Commission to take stock of the application of current rules, not least in high-risk sectors, and to undertake concrete measures to reinforce, where justified, infringement procedures against Member States that are failing to comply with the applicable rules; stresses, furthermore, the need to engage with the Member States to ensure the effective implementation and enforcement of current legislation concerning the posting of workers;

Amendment 34

Motion for a resolution

Paragraph 6

Motion for a resolutionAmendment
6. Is concerned about the lack of legal clarity as regards the differentiation between genuine and fraudulent postings of third-country nationals; calls on the Commission, in line with the Letta report, to review enforcement challenges and take the appropriate initiative to close identified legislative gaps;6. Notes the lack of legal clarity and certainty as regards the differentiation between genuine and fraudulent postings of third-country nationals; calls on the Member States, in line with the Letta report, to review enforcement challenges and take the appropriate initiatives where necessary, especially in terms of cross-border cooperation; recalls the overall conclusion of the Letta and Draghi reports of the need to enhance the competitiveness of the single market;

Amendment 35

Motion for a resolution

Paragraph 6 a (new)

Motion for a resolutionAmendment
6a. Stresses that the Commission and the Member States should assess how best to address unfair trading practices in the context of subcontracting, in particular by identifying the practices that lead to unauthorised subcontracting and labour exploitation;

Amendment 36

Motion for a resolution

Paragraph 7 a (new)

Motion for a resolutionAmendment
7a. Recalls that the 2023 Strategic Analysis on the construction sector by the European Labour Authority1a and the Commission report on the application and implementation of Directive (EU) 2018/9572a have determined that long and complex subcontracting chains can pose numerous challenges for labour enforcement authorities when they are used to escaping legal responsibilities, and may lead to unclear accountability and difficulty in ensuring compliance with public procurement contracts and labour obligations; notes, in that context, that Directive 2014/24/EU does not provide contracting authorities with sufficient tools to effectively address the non-performance of public contracts, and in some cases even hampers authorities wishing to take proactive measures;
_________________
1a 2023 Strategic Analysis entitled ‘Construction sector: Issues in information provision, enforcement of labour mobility law, social security coordination regulations, and cooperation between Member States’. 2a Commission report on the application and implementation of Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (COM(2024)0320).

Amendment 37

Motion for a resolution

Paragraph 7 b (new)

Motion for a resolutionAmendment
7b. Considers that contracting authorities must be guaranteed access to information on all subcontractors involved in the performance of public contracts in order to ensure accountability, facilitate inspections and safeguard consumer confidence in the quality and integrity of services, especially those funded with public money;

Amendment 38

Motion for a resolution

Paragraph 7 c (new)

Motion for a resolutionAmendment
7c. Calls on the Commission, in order to end abusive subcontracting and to protect workers’ rights in the context of public procurement, to strengthen transparency and accountability throughout the supply chain, and to consider introducing a well-defined regime for the joint and several liability of economic operators and subcontractors and for ensuring transparency regarding the subcontractors involved and the share of the contract that the contractor intends to subcontract;

Amendment 39

Motion for a resolution

Paragraph 7 d (new)

Motion for a resolutionAmendment
7d. Calls for a revision of the exclusion criteria in procurement processes, enabling these criteria to better address specific sectoral risks related to fraud, corruption and criminal infiltration; stresses that different sectors require separate, tailored exclusion criteria, reflecting their specific vulnerabilities; firmly believes that contracting authorities should be empowered to adapt procurement procedures to combat and address criminal activity; highlights that in order to promote greater efficiency and simplification, provisions relating to grounds for exclusion should be streamlined through an exhaustive list and a clear distinction between mandatory grounds for exclusion, intended to protect the public interest, and optional grounds for exclusion, intended to protect the interests of the contracting authorities or entities; adds that any economic operator that breaches its obligations under applicable labour and environmental laws pursuant to Article 18(2) of Directive 2014/24/EU should effectively be excluded from the public procurement process in question;

Amendment 40

Motion for a resolution

Paragraph 9

Motion for a resolutionAmendment
9. Recalls that Directive 2006/22/EC13 already sets minimum rules for checking compliance with social legislation in road transport and calls on the Commission to present a legislative initiative to require Member States to ensure an adequate minimum labour inspection capacity for all high-risk sectors, in line with the ILO benchmark of at least one labour inspector per 10 000 workers;9. Recalls that Directive 2006/22/EC13 already sets minimum rules for checking compliance with social legislation in road transport and calls for its full implementation and enforcement;
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13 Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC (OJ L 102, 11.4.2006, pp. 35, ELI: http://data.europa.eu/eli/dir/2006/22/oj).13 Directive 2006/22/EC of the European Parliament and of the Council of 15 March 2006 on minimum conditions for the implementation of Council Regulations (EEC) No 3820/85 and (EEC) No 3821/85 concerning social legislation relating to road transport activities and repealing Council Directive 88/599/EEC (OJ L 102, 11.4.2006, p. 35, ELI: http://data.europa.eu/eli/dir/2006/22/oj).

Amendment 41

Motion for a resolution

Paragraph 10 a (new)

Motion for a resolutionAmendment
10a. Notes the ongoing implementation of other EU legislative frameworks, such as the European Digital Identity Framework1a, that will improve the ability of authorities to tackle criminal behaviour without damaging the employment market, burdening SMEs or increasing costs for consumers; ______________ 1a Regulation (EU) 2024/1183 of the European Parliament and of the Council of 11 April 2024 amending Regulation (EU) No 910/2014 as regards establishing the European Digital Identity Framework (OJ L, 2024/1183, 30.4.2024, ELI: http://data.europa.eu/eli/reg/2024/1183/oj).

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that he included in his opinion input on matters pertaining to the subject of the file that he received, in the preparation of the opinion, prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register
EUROPEAN TRADE UNION CONFEDERATION (ETUC)
CEOE - Confederación Española de Organizaciones Empresariales
BUSINESSEUROPE
UNIÓN GENERAL DE TRABAJADORES DE ESPAÑA (UGT)
Confederación Sindical de Comisiones Obreras (CCOO)
Council of European Employers of the Metal, Engineering and Technology-based Industries (Ceemet)
2. Representatives of public authorities of third countries, including their diplomatic missions and embassies

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted11.11.2025
Result of final vote+: –: 0:43 2 2
Members present for the final voteAlex Agius Saliba, Pablo Arias Echeverría, Jeannette Baljeu, Arno Bausemer, Biljana Borzan, Anna Cavazzini, Stefano Cavedagna, David Cormand, Henrik Dahl, Dóra Dávid, Adnan Dibrani, Klara Dostalova, Hanna Gedin, Sandro Gozi, Maria Grapini, Elisabeth Grossmann, Maria Guzenina, Svenja Hahn, Anna-Maja Henriksson, Virginie Joron, Pierre Jouvet, Arba Kokalari, Nikola Minchev, Piotr Müller, Reinis Pozņaks, Christel Schaldemose, Andreas Schwab, Tomislav Sokol, Dimitris Tsiodras, Inese Vaidere, Adina Vălean, Kim Van Sparrentak, Marion Walsmann
Substitutes present for the final voteMarc Angel, José Cepeda, Veronika Cifrová Ostrihoňová, Salvatore De Meo, Dirk Gotink, Sophia Kircher, Alice Kuhnke, Marlena Maląg, Gaetano Pedulla’, Joanna Scheuring-Wielgus, Tomáš Zdechovský, Kosma Złotowski
Members under Rule 216(7) present for the final voteSiegbert Frank Droese, Pál Szekeres