Chihuahua, Chih., April 15, 2021.
Dear friends and clients.
We hereby inform you that on Wednesday, April 14th, the House of Representatives approved the amendment bill that regulates outsourcing services, and submitted it before the Senate for its further discussion and vote.
The amendment promotes the removal of harmful practices to the rights of employees in Mexico, in order to eliminate several simulation schemes practices that harm the working sector and public funds.
LAWS TO BE AMENDED.
Federal Labor Law (LFT), Mexican Social Security Institute Law (LSS), National Worker´s Housing Fund Law (INFONAVIT), Federal Fiscal Code (CFF), Income Tax Law (LISR).
Outsourcing of personnel is prohibited.
Outsourcing of personnel shall be understood as:
Providing or rendering one’s own workers for the benefit of another.
Only outsourcing of specialized services and works is allowed.
In order to comply with the foregoing, 4 essential elements are required:
That the services or works are unrelated to the corporate purpose of the recipient.
That the services or works are not related to the main economic activity of the recipient.
That the contractor is registered and said registration is updated before the Ministry of Labor and Social Welfare (STPS).
The outsourcing shall be executed through an agreement that must include the following:
Name, corporate name, corporate purpose, economic activity, tax, corporate and conventional domicile, Taxpayer Identification Number (RFC), Employer’s Registration number before the Mexican Social Security Institute (IMSS), public deeds information, purpose of the agreement, term, list of workers to be hired, the employee´s Unique Population Registry Number (CURP), employee´s Social Security number, base salary, and employee´s RFC, copy of the registration issued by the STPS.
The foregoing must be updated on a quarterly basis.
Complementary or shared services or works rendered between companies of the same corporate group will be considered as specialized, provided that:
They do not have any relation with the corporate purpose.
They are not directly linked to the main economic activity.
FINES.
From 2,000 to 50,000 times the Measuring and Updating Unit (UMA) for companies that provide outsourcing services without being registered and for those companies that benefit from unregistered or unregulated outsourcing.
The above without taking into consideration other penalties to which they may be subject such as:
The non-crediting or deduction of fines of the CFF, LIVA and LISR.
Criminal penalties.
Transitory regime:
TERMS.
Following the publication date on the Federal Official Gazette.
In 30 days: The STPS will issue general provisions that determine the procedures related to the registrations.
In 3 months: During three months, employer substitution will be permitted without the requirement of transferring assets, provided that the employees are transferred with all their conditions, including seniority. Thereafter, there will be no employer substitution without the transfer of the assets of the substituted employer.
In 4 months: All entities that provide outsourcing services must register.
All outsourcing service providers must file information before IMSS.
We remain at your service for any inquires or comments regarding the abovementioned information, hoping you find a correct decision making in the administration of your business. We recommend being vigilant to the new provisions to be issued to the particular topic.
Published by:
Mr. Daniel Alfonso Jiménez Lara / Partner of the Labor Practice Group
