The responsibility of companies in outsourced construction contracts

Abstract

Nowadays, there has been a boom in housing projects and trading in the country, which had led development companies and construction companies to increase and emerge to new legal forms of hiring such as outsourcing within the commercial contracts; still without a regulation and with an attempt to do so with “Regulation and Management of outsourcing Law Project, Subcontracting and Employment intermediation”, which is under revision since 2009 at the National Assembly of Nicaragua. It´s approval and implementation is necessary for uniqueness between all State Institutions who monitor the labor policy compliance, not defining beforehand what we know as outsourcing, subcontracting and intermediation. These last two are regulated by the Labor Code of Nicaragua, therefore is the need to precise what exactly Outsourcing is, due to a confusion on its own definition and characteristics, not only among the State Institutions but within the private companies and employees as well. In addition, to point out the companies liability on the agreement, especially when there are requirements to operate as an outsourcing company in order to avoid the labor rights to be transgressed.