Social insertion enterprises. Analysis of their legal regimen facing a possible amendment of Act 44/2007

Abstract

This paper aims to study the legal framework of insertion enterprises (from now on referred to as IEs). These companies are characterized by the performance of any economic activity whose corporate purpose is the social and labor integration of people in a situation of social exclusion as a transition to regular employment. The article begins by analyzing the EIs' conceptualization and categorization as social economy enterprises, social enterprises, and WISEs. Subsequently, the geographical and temporal distribution of IEs will be examined, which are closely related to the enactment of Spanish’s IE regulations. This section will allow us to address our main objective, which is to dissect the legal framework and legal regime of the IEs in our Spanish legal system. To this end, we will first analyze the legal framework of the IEs, as well as the controversial distribution of competencies made with the enactment of the Insertion National Law (Act 44/2007). Secondly, the legal regime of the EI will be presented. This will lead us to conduct a comparative study of the varied legislative frameworks across Spain. This analysis will be contextualized within the prospective reform of Act 44/2007, as part of the forthcoming Integral Law for the Promotion of the Social Economy.