Subcontracting Chains Under EU Scrutiny by Tanel Feldman

Subcontracting Chains Under EU Scrutiny by Tanel Feldman

What HR Needs to Know About Control, Responsibility and Compliance

Subcontracting chains have become a core feature of cross-border service delivery across sectors. But as these structures expand, they increasingly fragment responsibility, obscure employer identity, and create significant compliance risks.

Recent developments at both national and EU level confirm a clear shift: enforcement authorities are moving beyond contractual arrangements and focusing instead on the actual organisation of work, the exercise of control, and the economic reality of operations.

A landmark judgment of the Belgian Court of Cassation (21 January 2026) illustrates this approach. The Court confirmed that complex subcontracting structures do not shield companies from liability where, in practice, they exercise employer authority over workers.

At EU level, the European Parliament’s February 2026 Resolution reflects the same concern: