The End of Outsourcing? (Part 2)

On April 5, 2021 the Mexican Government, the workers’ sector and the employers’ sector reached some agreements which will be subject to the discussion and approval of the Congress when the amendment bill is discussed; herein you will find a summary of such
agreements:

1. outsourcing personnel will be prohibited (both outsourcing and insourcing);
2. both specialized services and specialized work will only be allowed for activities not related to the corporate purpose or main activities of the contracting company. The supplementary or shared services and works between companies of the same corporate group, will also be considered specialized only if such services are not part of the corporate purpose or the main activity of the entity receiving such services;
3. companies providing specialized services or works must be registered with the Ministry of Labor and Social Welfare and with the public registry applicable to such companies;
4. there will be joint liability for the contracting party if the services provider does not comply with its labor and social security obligations with its personnel;
5. a term of three months will be granted to transfer the employees that are outsourced to the payroll of the real employer; and
6. there will be a limit for profit sharing payments (a) three months of salary; or (b) an average of the profit sharing received in the last three years; the amount more beneficial to the employee will apply.

Once the amendment bill is approved by Congress, we will let you know.

Juan Tejedo, juan.tejedo@gmt.mx
Alfonso García-Mingo, a.garciamingo@gmt.mx
Carlos Acle, carlos.acle@gmt.mx