Subcontracting chains under the EU spotlight

On 12 February 2026, the European Parliament adopted a resolution on addressing subcontracting chains and the role of intermediaries in order to protect workers’ rights (2025/2133(INI)).

The resolution highlights growing concerns over long and opaque subcontracting chains and labour intermediation structures that can blur employer responsibility and, in practice, facilitate exploitation — particularly in cross‑border settings. Its focus is on visibility, traceability and accountability across labour supply chains, including where work is organised through staffing providers, subcontractors, vendors, recruiters or other intermediaries.

What’s on the table?

• An EU strategy to combat labour exploitation, including illegal work and abusive subcontracting
• More room for Member States to tackle long and complex subcontracting chains
• Greater transparency and accountability throughout the supply chain, including clearer responsibility for intermediaries
• A clear stance against so‑called “financial subcontracting”
• Stronger enforcement, including a reinforced role for the European Labour Authority (ELA)

If implemented, this would move ELA beyond coordination — towards operational enforcement, supported by closer cooperation between national authorities.

At the same time, Parliament stresses the need to strike the right balance: Joint and several liability as a tool to protect workers — without creating unnecessary barriers to cross‑border business.

The resolution also zooms in on key risk areas:

• Fraudulent posting and letterbox companies
• Housing conditions for posted workers
• Stricter social criteria in public procurement
• health & safety in high risk sectors such as construction

Impact

The resolution does not, as such, change EU law. However, it obliges the Commission to respond within three months — potentially paving the way for EU legislative initiatives on labour protection, enforcement and supply‑chain transparency.

Bottom line?

Subcontracting chains are increasingly framed as a core compliance and enforcement challenge — at EU level.

The resolution is particularly relevant for the staffing industry, as well as for contractors and user companies relying on flexible or outsourced labour models. Increased enforcement is likely to translate into greater scrutiny by labour inspectorates, not only of illegal arrangements, but also of legitimate intermediation models and how responsibility is organised in practice.

The debate ahead will therefore not be limited to fraudulent structures. It will touch upon fundamental questions: who is considered responsible in complex labour chains, how posting rules are applied, how far the competences of the ELA may extend, and how enforcement is balanced with the freedom to provide services.

For businesses, expectations are rising that they can demonstrate robust controls, effective checks and endtoend traceability throughout these chains.

The Parliament has set the political agenda.The legal refinement will now depend on what the Commission chooses to do.