27 May, 2025On 21 May, Tunisia’s Parliament passed a new law regulating employment contracts and restricting subcontracting. The law, referred to as the “subcontracting law,” introduces penalties, including potential imprisonment, for those hiring through outsourcing arrangements. It also replaces fixed-term contracts with open-ended ones, while allowing some exceptions. The Tunisian General Labour Union (UGTT) reveals numerous shortcomings and loopholes in the new text and warns of repercussions on workers.
According to the government, the law aims to prevent fixed-term employment contracts, eliminate labour subcontracting and guarantee the right to permanent and stable employment. The government says that the objectives of the law are in line with the Tunisian state's vision based on the social role of the state.
These amendments, which affect workers, come amid tense relations between UGTT and the Tunisian government and the suspension of dialogue.
Before the amendments were presented to the parliament, UGTT issued a document containing its observations. According to the UGTT, the amendments have been made without consultation, which is a legal flaw. The law requires the government to consult within the National Council for Social Dialogue, which did not happen.
UGTT state that, despite its importance, the proposed revision represents a partial and limited response to the phenomenon of precarious employment, which does not guarantee decent work, social justice and human dignity, objectives that can only be achieved through a comprehensive review of labour legislation. UGTT called for a review of many of the concepts and details contained in the draft law that could open the door to numerous interpretations that could affect the right to strike or pave the way for new forms of exploitation. UGTT called for the adoption of a model/standard employment contract that includes all details and provides guarantees for workers.
Unions discuss the impact on workers
The administrative body of Fédération Générale du Textile, de l'Habillement, Chaussure et Cuir - FGTHCC-UGTT, which met on 17 May 2025, criticized the lack of clarity in several chapters and called on the Parliemant to consult before approving the amendments. The administrative body for Fédération Générale de la Métallurgie et de l'Electronique - FGME-UGTT, which met on 19 May 2025, warned of the repercussions of the amendments on workers and the general social climate in the sector. According to the administrative body, the law will encourage employers to terminate many contracts to avoid workers becoming permanent in their jobs.
Fédération Générale de la Pétrochimie - FGP-UGTT organzsed a seminar on the amendments from 15 to 17 May 2025. Experts attending the seminar said that the law contains many vague details that could cause tension in labour relations and called for further clarification of the concepts. They said that the new feature of the law is the recognition by Tunisian law that employment contracts are of indefinite duration.
Said Habib Hazemi, IndustriALL vice president and general secretary of Tunisia’s FGTHCC-UGTT:
“The new law is vague. The ambiguity in the definition of subcontracting may be an obstacle to foreign investment and the work of international companies in Tunisia. It's therefore necessary to clarify matters by distinguishing between subcontracting, which means the exploitation of workers, and subcontracting, which means a Tunisian company obtaining a share of the market.”
Abdelaziz Arfaoui, general secretary of FGME-UGTT, said:
“The law has profound implications for workers, and we witnessed a major layoff campaign before the law was debated. Companies are seeking to avoid the effects of the new law. Workers and unions in the metal and electronics sectors will pay the price for the amendments.”
Salouan Smiri, general secretary of FGP-UGTT, stated that:
“The opinion of UGTT is important, and it would have been more appropriate for Parliament to listen to workers' representatives. This did not happen, which is a major shortcoming. We fear that the lack of clarity in the law will lead to an increase in litigation and injustice for workers.”