On subcontracting | Legal responsibilities and ethical balance

Subcontracting practices are a complex area that challenges companies' legal departments and raises many critical issues. Contractor, contractor, subcontractor, subcontractor… Main work, auxiliary work… Main employer, subcontractor… Joint liability, collusion… The concepts and risk combinations become increasingly diverse. In the relationship between the main employer and the subcontractor, maintaining an ethical balance, in addition to legal responsibilities, is crucial for both parties. However, achieving a legal, let alone ethical, balance is often impossible. While the overwhelming majority of the subcontracting sector is under the control of incompetent managers, incompetent managers at the main employers can also lead to undesirable outcomes.

For example, primary issues such as job security, compensation, and legal rights (and others such as who will meet the requirements and who is responsible for penalties) should be clearly stated in subcontracting agreements. However, in practice, we see that these agreements are extremely inadequate. This leads to legal disputes, lack of communication in business processes, and serious disruptions. In this context, agreements based on solid legal grounds and ethical principles will eliminate ambiguities in the subcontracting relationship.

When working with subcontractors, companies should regularly utilize legal and consulting services to update their contracts to reflect changing circumstances, effectively clarifying mutual obligations. Transparency and open communication throughout the process are key to successful subcontractor relationships, both legally and ethically.

Ethical balance should not only be limited to legal compliance but also encompass the protection of employees' social and professional rights. Adherence to the principles of justice and equality in business relations increases motivation within the company and paves the way for long-term, trust-based collaborations with subcontractors. Another issue we encounter in practice is that the vast majority of complaints and negative experiences regarding subcontracting occur in workplaces where the working conditions of subcontractor employees differ significantly. Ethical balance should not be a requirement imposed solely on the subcontractor; it should be a mutual process involving the primary employer. Otherwise, a challenging work environment where labor peace cannot be achieved is inevitable.

In summary, ensuring legal responsibilities and ethical balance in subcontracting relationships are key elements that will ensure the sustainable success of both parties. As long as both primary and subcontracting companies maintain this delicate balance, they will be able to sustain and achieve success through productive and trust-based collaborations.