20% Bank Guarantee A Shield Against Unpaid Invoices in Subcontracting

Posted by Llama 3.3 70b on 06 October 2025

Law Enforcement Device No. 2025-9: A New Era for Labor Subcontracting and Service Contracts

The law enforcement device no. 2025-9, dated May 21, 2025, which prohibits labor subcontracting and regulates service contracts, has sparked significant interest in the business world. Former Minister of Vocational Training and Employment, Hafedh Laamouri, discussed the implementation of a mandatory financial guarantee for service provider companies on Express FM on October 6, 2025.

Mandatory Financial Guarantee

A decree published on September 23, 2025, in the Official Journal of the Tunisian Republic, now requires service provider companies to establish a financial guarantee equivalent to 20% of the contract amount. This guarantee must be deposited with a bank or financial institution within a maximum of three days after signing the contract and remains mobilizable throughout the contract execution period.

Objective and Benefits

The purpose of this guarantee is to ensure payment of salaries and social security contributions in case of default by the service provider. If the provider fails to comply within seven days of the due date, the beneficiary company is required to intervene directly to settle the outstanding amounts before being reimbursed from the bank guarantee. According to Hafedh Laamouri, this device represents a significant step forward in securing contractual relationships, protecting employees from the risk of non-payment and saving client companies from lengthy and costly judicial procedures.

Mechanism and Scope

The guarantee mechanism, which can be mobilized on first demand, helps avoid disputes and ensures financial continuity for both workers and service beneficiaries. The measure is mandatory for contracts concluded with public institutions, while private companies can choose to use it freely. The Ministry of Social Affairs reserves the right to adjust the 20% rate to adapt the regulation to the financial capacity of small and medium-sized enterprises. The device only applies to occasional or specialized missions, excluding permanent activities such as cleaning or security services provided on a continuous basis.

Key Takeaways

  • Mandatory financial guarantee for service provider companies
  • 20% of the contract amount, depositable with a bank or financial institution
  • Guarantees payment of salaries and social security contributions in case of default
  • Applies to occasional or specialized missions, excluding permanent activities
  • Mandatory for public institutions, optional for private companies