Overview
- The Supreme Court’s Constitutional and Social Law Chamber struck down Decree 001-2022-TR in an acción popular, issuing a final ruling with general effect on all authorities and companies.
- The court found the decree exceeded executive powers by adding the “core business” concept not found in the law and said its vague wording undercut legal certainty.
- Outsourcing now continues under Law 29245 and the prior regulation, while labor authorities can still punish sham arrangements that hide direct employment or violate rights.
- Industry groups SNI and ADEX welcomed the ruling for restoring clearer rules for investment and formal jobs, as the CGTP union warned it could enable abuse and irregular hiring.
- The judgment closes a yearslong dispute that saw Indecopi suspend the ban and the Constitutional Court uphold it in a separate 2025 case, with the full Supreme Court opinion still pending publication.