The Supreme Court of Peru has annulled Supreme Decree No. 001-2022-TR, which prohibited the outsourcing of core activities in companies, a decision that ends a controversy that has lasted nearly four years. This ruling, issued by the Constitutional Chamber, considers that the decree, enacted during Pedro Castillo’s administration, violated the principle of normative hierarchy by introducing the concept of ‘core business,’ which was not defined in the existing legislation.
With the annulment, the use of outsourcing is reinstated, although the Court made it clear that this practice will be penalized if used fraudulently. Labor lawyer Luis Vinatea emphasized that the decision significantly impacts the labor and business sectors, allowing companies to outsource core activities as long as the workers are not under their direct dependency.
On the other hand, the General Confederation of Workers of Peru (CGTP) criticized the ruling, arguing that it opens the door to labor abuses. In contrast, business groups such as the National Society of Industries (SNI) celebrated the ruling, arguing that the annulled regulation created uncertainty and affected investments. This judicial decision also closely follows the recent pronouncement of the Constitutional Tribunal, which had supported the constitutionality of the decree in October 2025.
