2021 – 2 Labor

Mexico President´s office announces agreement on outsourcing initiative

On April 5, the President of Mexico met with representatives of both the private and the employee’s sectors, as well as congressmen and officers of the federal government to discuss several matters associated with the outsourcing bill. As a result of such meeting, the following items were agreed to be included in the bill filed to the Mexican Congress shortly:

(i) the prohibition of subcontracting (outsourcing) of staff and personnel;

(ii) the regulation for subcontracting of specialized services, other than those provided within the corporate purpose or main course of business of the contractor;

(iii) the registration before the Ministry of Employment, together with the enrollment on a public registry of companies dedicated to render specialized services;

(iv) the joint liability for contracting parties regarding non-compliance of the contractors with their labor, tax and social security obligations;

(v) a transition period of three months after the bill is passed will be granted for employees to be relocated within the operating companies; and

(vi) the limitation on the individual amount of profit sharing payable to employees up to an amount of 3 months of salary or the averaged amount paid to each employee throughout the past 3 years.

It is expected that in the following days, the modified and agreed texts to the bill will be sent to the Mexican Congress for their integration and discussion to the overall reform project, aiming

for a potential approval and publication of this reform by the end of the current ordinary legislative period taking place on April 30, 2021.

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Mexico City

   April 2021

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