For the last few years some companies in Nicaragua, have been using outsourcing or subcontracting, as a strategy to improve the efficiency and productivity of their business. As a result of the constant use of this contractual mechanism by local companies, a bill was submitted in the National Assembly in 2009 to regulate outsourcing, however, to date such bill has not been approved.
In spite of this commercial practice, to date, outsourcing is not specifically regulated or prohibited in Nicaragua, but there are certain regulations provided for in the Labor Code and related laws that must be complied with since they are related with the common practice of outsourcing in Nicaragua.