Executive Branch announces agreement with private sector to move forward with outsourcing bill
8 abril 2021

MEXICO

On April 5, President Andrés Manuel López Obrador (AMLO) announced an agreement with the private sector to advance in the regulation of labour outsourcing. In this regard, Senator Ricardo Monreal (Morena – ruling party) gave more details of the agreement, assuring that a series of reforms will be sent to the outsourcing bill presented in November 2020 by the President.  Deputy Anita Sánchez Castro (Morena – ruling party) stated that the Finance and Public Credit and Labour and Social Welfare committees will seek to debate the text this week so that the Chamber of Deputies can approve it on April 13.

After the agreement was signed, Monreal gave further details. He explained that outsourcing would not be eliminated, but that it would be regulated, establishing mechanisms to “prevent this legal figure from continuing to be used to harm the rights of workers and to avoid or evade tax obligations”. 

Between the modifications agreed with the private sector, it proposes that companies providing specialised services should have a registration before the Secretariat of Labor and Social Welfare (STPS, in Spanish) that must be renewed every three years in order to be able to have workers under this type of employment. Also, in tax terms, it determines that payments or considerations for subcontracting specialised services may be deducted, as long as the company providing the service is registered before the STPS. In addition, it incorporates a maximum of up to 90 days of profit sharing for workers.

On the other hand, the companies that execute or provide the type of services mentioned will have to provide information every four months on the contracts they have signed during that time. In addition, it proposes that the company that hires a specialized services company should verify that the contractor is registered before the STPS and that once the bill comes into force, companies will have three months to obtain the required registration.

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