Contradictions in neoliberal reforms: the regulation of labor subcontracting

Neoliberalism is typically associated with the commoditization and flexibilization of the labor market and a project of deregulation. In constructing responsibility between the employees and employer, deviations from the “standard employment relationship” (SER) indicate the neoliberal thrust. However, this study reveals a growing body of state-led regulation of one such deviation—mediated employment through temp-work agencies and subcontractors. The body of regulations, a source of social action, derives from collective bargaining, extension decrees, judicial decisions, and formal regulation by statutes and executive action. The chapter critically examines two interpretations of these legal developments: one that refutes the claim that neoliberalism dissolved the state’s responsibility, as evidenced by the ever-growing safety net; and another which claims that regulation is merely a token correction of dualism and fragmentation in the labor market.