During a parliamentary committee hearing on March 26, 2025, Tunisia’s Minister of Social Affairs, Issam Lahmar, announced that reforms to the Labor Code will soon be introduced. These reforms aim to make permanent contracts (CDI) the standard while restricting fixed-term contracts (CDD) to three exceptional cases: temporary increases in workload, temporary replacement of permanent employees, and seasonal work, which is common in agriculture and tourism.
The minister emphasized that the principle of permanent contracts is not new to the Labor Code, which already includes some exceptions. However, the upcoming reform seeks to clarify that fixed-term contracts should be the exception rather than the rule, used only to meet specific job-related needs rather than employer preferences.
Lahmar also addressed subcontracting, noting that its regulation was considered during the 1996 Labor Code revision. He argued that subcontracting has failed to resolve labor exploitation issues, and the current reform aims to address this gap. The new law will primarily impact the private sector while introducing measures to regularize the status of subcontracted public sector workers, who currently operate under special regimes.
This reform follows a call from Tunisian President Kaïs Saïed in March 2024, who demanded a ban on subcontracting and action against fraudulent labor practices. The goal is to strengthen workers’ rights and ensure greater stability in professional relationships.
However, the reform may not satisfy economic operators, who already complain about Tunisia’s lack of labor flexibility. It is also unlikely to boost investment, as labor costs remain a key factor for both Tunisian and foreign investors. While the Tunisian Union of Industry, Commerce, and Handicrafts (Utica) and other employer organizations have not yet reacted to the announcement, it’s likely their concerns differ from those of government officials.
