The Assembly of the Representatives of the People is holding a plenary session this Tuesday, 20 May, to examine a draft law on the regulation of employment contracts and the prohibition of subcontracting. Minister of Social Affairs Issam Lahmar is attending the session, which has drawn significant attention from hundreds of thousands of workers facing precarious employment conditions.
A Reform Project Welcomed by Labour Law Experts
According to Hafedh Laamouri, a labour law specialist, the bill is expected to be approved by Parliament with only minor amendments. Speaking to the Tunis Afrique Presse (TAP) agency, he described the bill as a decisive step toward ensuring job stability for workers currently employed under fixed-term contracts (FTCs). Notably, the proposed legislation introduces the principle of equal pay between subcontracted workers and permanent employees, while also criminalising the practice of subcontracting.
Toward a Generalisation of Open-Ended Contracts
The bill seeks to overhaul the Labour Code in accordance with a presidential decision dated 6 March 2024. It establishes the open-ended contract (CDI) as the standard form of employment, particularly for the core and permanent functions of companies. Under the proposal, the use of fixed-term contracts would be limited to three exceptional cases: the temporary replacement of an absent employee, the performance of seasonal or exceptional tasks, and work that, by its very nature, can only be undertaken through a temporary contract.
Concrete Measures Against Precarious Employment
The draft also introduces new provisions regulating probationary periods, which would be set at six months, renewable only once, and applicable exclusively to open-ended contracts. During this period, termination must be preceded by at least 15 days’ notice. Furthermore, any subsequent hiring must be direct and cannot include a repeat probationary period. The bill also stipulates that if a fixed-term contract is tacitly renewed beyond its term, it will automatically be converted into a permanent contract, with seniority calculated from the beginning of the initial employment relationship.
A Clear Crackdown on Subcontracting
The proposed legislation takes a firm stance against subcontracting. Article 28 introduces a total ban on such practices, while Article 29 imposes a fine of 10,000 dinars on violators—an amount that could be supplemented by a prison sentence in the event of repeat offenses. Existing “secondary labour providers” would be replaced by “service and works companies,” whose operations will be strictly regulated. These companies will be legally required to provide proof of wage payments and social security contributions to the beneficiary company within seven days of contract signing.
Changes to Free Economic Zone Regulations
The bill also calls for the repeal of Article 23 of Law No. 81 of 1992 on free economic zones, which previously deemed all employment contracts within those zones to be fixed-term, regardless of their nature.
Transitional Measures to Protect Workers’ Rights
A dedicated chapter of the bill outlines transitional provisions to ensure the protection of workers’ rights as the law comes into effect, particularly those affected by fixed-term contracts or subcontracting arrangements.
A Structural Reform of the Labour Market
Submitted to Parliament by President Kaïs Saïed on 14 March 2025, the bill is part of a broader package of reforms aimed at establishing a more equitable and sustainable employment framework. If adopted, it could mark a turning point in Tunisia’s labour legislation by strengthening workers’ rights and curbing long-tolerated forms of precarious employment in various sectors.
Source: TAP (Tunis Afrique Presse)
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