mygimwali - FotoliaLimiting subcontracting chains
European Parliament calls for greater protection of workers.
CP – 10/2025
Many workers are affected by abuse and exploitation – particularly in sectors such as agriculture, transport and logistics, food processing, and care work. One of the main causes is often the long and complex chains of subcontractors. This often leads to a loss of control over who is responsible for ensuring health, safety, and employment standards. The consequences are longer working hours, lower wages, and uncertainty about accountability in the event of workplace accidents. The Committee on Employment and Social Affairs (EMPL) therefore recognises the need for action at the European Union (EU) level. In early September, the responsible rapporteur Johan Danielsson (S&D, SE) presented his draft own-initiative report (INI), proposing measures to improve the situation.
More oversight, less exploitation
The draft report rests the protection of workers on three key pillars: prevention, oversight, and sanctions. To prevent exploitation, the report calls for a framework directive that limits subcontracting in high-risk sectors to a maximum of two tiers below the main contractor and introduces joint and several liability throughout the subcontracting chain. According to Danielsson, there is uncertainty among Member States as to whether they are even permitted to take action with regard to the regulation of subcontracting chains. The European Commission should therefore clarify that Member States are not prevented from introducing legislation to regulate complex subcontracting chains by internal market rules.
To enhance control and enforcement, the draft report calls, among other things, for the strengthening of the European Labour Authority (ELA). Other proposals include the swift introduction of the European Social Security Pass (ESSPASS) and the digital enforcement of social security rights and fair labour mobility, including real-time checks and information exchange between enforcement authorities. Furthermore, the rapporteur calls on the European Commission to introduce a legislative initiative to ensure that all Member States are required to appoint at least one labour inspector per 10,000 workers in high-risk sectors.
With regard to sanctions, the European Commission should ensure that any imposed trade ban is automatically recognised across all Member States and that the exchange of information on sanctions between Member States takes place in a timely manner.
Broad support within EMPL
The presentation of the draft report by the rapporteur received mixed reactions in the committee. Members of the European Parliament (MEPs) from the European People’s Party (EPP) shared the goal of combating exploitation but expressed concern that the proposed solution could place an excessive burden on businesses. MEPs from the Socialists & Democrats (S&D), Renew Europe, and the Greens welcomed the proposal, with the Liberals advocating for a balanced approach between the report’s position and that of the EPP. The Left also supported the draft but considered the two-tier subcontracting limit in high-risk sectors insufficient, arguing instead that such rules should apply across all sectors. MEPs from the far-right Patriots for Europe (PfE) group did not support the report.
Next steps
The 252 proposed amendments by EMPL members have already been submitted, and compromise negotiations will continue until mid-November. EMPL is expected to vote on the INI report in early December. The subsequent plenary vote is scheduled for January 2026.