Tunisian Parliament Passes Landmark Bill on Labor Contracts and Subcontracting Ban
After a marathon plenary session that began on Tuesday morning and lasted until the dawn of Wednesday, May 21, 2025, the Assembly of the People's Representatives passed Bill No. 16-2025, relating to the organization of labor and the prohibition of subcontracting.
The text was adopted in its entirety with 121 favorable votes, 4 abstentions, and no votes against. Only one amendment was retained, while other proposals were rejected due to a lack of majority. The text thus retains its original version presented by the government, testifying to a broad consensus on its general direction despite some divergences on details.
Chapter 1: Normal Form of Employment
The first chapter of the text establishes that the indefinite-term contract constitutes the normal form of employment. Fixed-term contracts remain exceptional, only authorized in specific and justified circumstances, such as temporary increased activity, replacing an employee, or performing seasonal work. The probationary period is set at six months, renewable once, in a bid to strike a balance between employment stability and flexibility for the enterprise.
Chapter 2: Ban on Subcontracting
The second chapter prohibits the use of third parties to perform permanent and essential missions within enterprises, whether public or private. Only certain punctual technical interventions are permitted, on condition that they do not become a means of circumventing workers' legal entitlements. This marks a significant legal breakthrough in Tunisia, putting an end to several years of controversy surrounding subcontracting and its impact on job insecurity.
Chapter 3: Sanctions
The chapter on sanctions provides for severe measures to enforce the law, including financial penalties and the automatic recognition of a direct employment link between the employee and the beneficiary enterprise. Offending enterprises may also be excluded from benefits or public markets.
Transitional Provisions Finally, transitional provisions are planned to enable enterprises to adjust their situation, ensuring a gradual implementation of reforms without perturbing production or existing contractual relationships.
