Fundamentals of CAE (For Beginners)
Have you ever wondered what happens when several companies (bricklayers, electricians, computer technicians, cleaning staff...) work at the same time in the same place, such as an office or a construction site? Who makes sure that the risk of one does not become the accident of another? The answer to that question is the Coordination of Business Activities, or as you know it by its acronym, CAE.
In a nutshell, CAE is the set of actions and procedures organised to prevent occupational risks when two or more companies coincide in the same workplace. It is a compulsory health and safety dialogue to protect all workers involved.
What exactly is the Coordination of Business Activities?
Imagine the CAE as the conductor of an orchestra. Each musician (company) is an expert on their instrument (their job), but if everyone plays at their own pace without coordinating, the result is chaotic and dangerous noise. The conductor (the CAE) makes sure that everyone follows the same safety score to create a harmonious and, above all, safe melody.
The Main Objective: Why is the CAE so necessary?
Beyond being a simple legal obligation, the CAE is a fundamental tool for three key reasons:
Accident Prevention: Its ultimate aim is to protect the life and health of workers, preventing the risks of different activities from combining and multiplying.
Comply with the law: Ignoring the CAE can lead to very serious financial penalties and legal liabilities (civil and even criminal) for employers.
Improved Efficiency: A safe working environment is a productive environment. CAE helps to better organise tasks, avoid interference and optimise resources.
Key Concepts to Master
To get to grips with the world of the CAE, you need to know its basic «dictionary»:
Workplace: The physical place, whether it is a building, factory, farm or undeveloped area, where workers go to do their work. It is the «setting» where the concurrence occurs.
Concurrence: The fact that workers from different companies coincide in the same workplace, either simultaneously or one after the other.
Own Activity: This is a crucial concept. It refers to tasks that are inherent, core or indispensable to the core business of the company owning the workplace. For example, in a hotel, cleaning rooms is «own business», but installing new management software may not be. Defining this correctly determines the level of responsibility.
Legal Framework and Responsibilities
The CAE Regulations: Royal Decree 171/2004 in plain language
The whole structure of the CAE in Spain is based on one main regulation: Royal Decree 171/2004. This decree did not come out of nowhere; it developed article 24 of Law 31/1995 on Occupational Risk Prevention, the mother law of health and safety at work.
What this Royal Decree does is to put theory into practice: it tells us who has to do what, how and when for coordination to be real and effective.
Joint and Several vs. Subsidiary Liability: Who pays if something goes wrong?
When an accident occurs or regulations are breached, the law looks for those responsible. In the CAE field, two terms generate a lot of confusion, but understanding them is vital. We've created this table to help you see the difference at a glance:
Characteristic, SOLIDARITY Liability, SUBSIDIARY Liability
Who to claim from, Payment of the debt or penalty can be demanded at the same time from both the principal debtor and the jointly and severally liable person, First an attempt should be made to collect from the principal debtor. Only if this fails, payment can be demanded from the person who is jointly and severally liable.
Scope of the debt, The jointly and severally liable person can be held liable for 100% of the debt, not just a part of it, He is liable, but only if the principal debtor fails to do so.
Collection process, The administration can initiate the collection process against the jointly and severally liable party without waiting for a final judgement on the principal debtor, The collection process cannot be initiated against the vicariously liable party until the collection attempt on the principal debtor has been declared unsuccessful.
Practical example: You are the main employer and you subcontract a task of your «own activity». If the subcontractor does not pay its social security debts, the administration could claim the entire debt directly from you, you are the owner of a premises (principal employer) and a company that rents the space from you has a debt. The administration will first go after the tenant company, and only if it is unable to collect, will it turn to you.
Export to Spreadsheets
The CAE Protagonists
Several actors are involved in this coordination scenario, each with a defined role. Knowing them is essential to know what your obligations are.
The Entrepreneur: Headline vs.
Owner-entrepreneur: This is the owner of the workplace, the person or entity that has the capacity to make it available. For example, the owner of an industrial building who rents it to another company. His main duty is to inform about the risks of the workplace itself.
Principal Entrepreneur: This is the company that hires others (contractors or subcontractors) to carry out work or services that correspond to its own activity. For example, a construction company that subcontracts plumbing. Its responsibilities are much greater, including monitoring the regulatory compliance of its subcontractors.
Participating Companies: Contractor, Subcontractor and Freelancers
- Contractor: The company that is contracted by the principal employer to perform a specific job.
- Subcontractor: The company that is hired by the contractor.
- Self-employed worker: This is considered a company for the purposes of the CAE and has the same coordination obligations.
The Key Role: The Business Activity Coordinator
When the situation is complex (due to the hazardous nature of the activities or the number of companies), this figure must be appointed. Its functions include, among others:
- Encourage the exchange of information.
- Organise means of coordination.
- Ensure that working procedures are applied consistently and safely.
Who can this be? Normally it is a prevention technician with appropriate training, who can be from the company's own company, the main company or an external prevention service.
Other Preventive Figures
The CAE also involves the Preventive Resources (present at times of special risk), the Prevention Delegates and the Health and Safety Committee, which are the workers' representatives.
The CAE in Action (The Practical Part)
How is an effective CAE implemented? The Means of Coordination
The law does not impose a single method, but offers a range of «means of coordination» for companies to choose from:
- Exchange of information and documentation: This is the basis of everything. Before starting work, companies should exchange their Risk Assessments, Preventive Plans and information on the specific risks of their tasks.
- Periodic meetings: Bringing together the heads of all the companies involved to plan work, review procedures and solve problems.
- Joint Work Instructions: Create and share specific safety protocols for tasks to be performed concurrently (e.g. «Procedure for work at height»).
- Presence of Preventive Resources: Appoint one or more persons to monitor on site that preventive measures are being complied with.
Documentary Management: The Heart of the CAE
Let's be honest: CAE involves a huge amount of paperwork. Managing and validating documentation for each company, worker and machine can become an administrative nightmare.
Checklist of Essential Documentation for Contractors
Here is a basic list of the documents that are usually requested:
Administrative Documentation:
- [Certificate of being up to date with payments to the Social Security.
- [Certificate of being up to date with payments to the Tax Agency.
- [Civil Liability Policy and proof of payment.
- [Form TC1/RLC (Nominal List of Workers) and proof of payment.
Preventive Documentation:
- [Contract with an External Prevention Service (or preventive modality adopted).
- [Risk Assessment and Planning of the Preventive Activity.
- [Certificates of training and risk information for workers.
- [Proof of delivery of Personal Protective Equipment (PPE).
- [Certificates of medical fitness of workers (health surveillance).
Digitising CAE: What is a CAE Platform and how can it help you?
Faced with this tsunami of documents, technology has become the best ally. A CAE platform is online software designed to automate and simplify all this management.
What does it do?
Centralise: All the documentation of all the companies in a single place.
Automate: Send document expiry notices, preventing an expired piece of paper from leaving you in non-compliance.
Validate: Helps to check that documents are correct and up to date.
Access Control: Ensures that only workers with all the necessary documentation have access to the workplace.
Investing in a CAE platform is not an expense, it is an investment in peace of mind, security and efficiency.
CAE Case Studies by Sector
On a construction site: The builder (principal employer) must coordinate the plumber, electrician and painter so that, for example, painting work does not affect newly made installations and safe passage areas are respected.
In a shopping centre: The management (owner/principal entrepreneur) coordinates the shops, the cleaning company and the security company to manage emergencies, evacuations and the maintenance work that is carried out at night.
In a community of neighbours: The community (owner-entrepreneur) hires a company to renovate the façade. It must coordinate with the company to inform the neighbours of the risks (falling objects) and ensure that the scaffolding does not block emergency exits.
Frequently Asked Questions (FAQ) about CAE
Does a self-employed person with no employees have to do CAE?
Yes, for the purposes of the law, a self-employed person is considered a company and must coordinate and submit the relevant documentation.
If I am only going to do a one-hour one-off repair, does CAE also apply?
Yes, the law does not distinguish by duration of work, but by concurrence. If your workers coincide with those of another company, the CAE applies.
What happens if a subcontractor does not provide me with documentation?
As the principal employer, your duty of care obliges you not to allow work to commence until the documentation is in order. Allowing them to work without the papers in order makes you jointly responsible.
As you have seen, the Coordination of Business Activities is much more than a formality. It is the backbone of prevention in complex work environments. Understanding its concepts, knowing your responsibilities and using the right tools will not only save you from fines, but above all, it will protect the most valuable thing: people's health and safety.
Managing CAE may seem like a mountain, but you don't have to climb it alone.
Need to bring order to your document management and ensure compliance? Contact our experts and find out how a CAE platform can transform the way you work, giving you the security and peace of mind you need.
