Pursuant to the Labour Protection Act, a company is deemed for the purposes of that Act to be the employer of any outsourced workers, where such workers perform core duties of the business of the employer. Pursuant to the Act, the employer is obliged to ensure that such outsourced workers receive fair benefits and welfare without discrimination as compared to direct employees. Thus employment sub-contractors may be subject to the usual employment obligations of an employer, for example, the collection and remittance of social security or workmen’s compensation contributions.
In contrast, if the outsourced worker is performing non-core functions and duties (eg businesses often outsource functions such as cleaning or catering within their offices), then the non-discrimination obligation will not apply.