Peru Ruling Allows Outsourcing of Core Business Activities to Resume

In April 2026, Peru’s Supreme Decree No. 001-2022-TR was ruled null and void by the country’s supreme court. The ruling allows organizations to resume the outsourcing of business activities as long as statutory requirements are met. However, businesses must be diligent in avoiding worker misclassification.

The court’s decision follows a challenge against the decree, which, according to DLA Piper, included:

• A restriction on outsourcing activities that were considered part of a company’s “core business”
• Criteria to identify such activities
• Additional grounds that allow outsourcing arrangements to be disregarded for employment purposes
• A deadline by which companies needed to adjust their existing contractual arrangements

The court ruled that the decree imposed restrictions on businesses that were not laid out in the law that governs outsourcing, Law No. 29245. The court also held that criteria for defining “core business” activities were ambiguous, which made them difficult to apply.

While companies can now outsource these core activities, such arrangements are still subject to oversight by the Peruvian Labor Authority. This means that businesses need to ensure that outsourcing arrangements are genuine and not used to work around labor protections. Compliance risk around the outsourcing of work to external parties still exists.

Sources: DLA Piper, Outsource Accelerator