Chihuahua, Chih., July 22, 2021.

Dear Clients and Friends,

We hereby inform you that on July 20^th, 2021, the bill to amend certain provisions of the outsourcing decree issued on April 23^rd, 2021 (the “Decree”) was published in the Gazette of the Permanent Commission of the Senate.

This bill seeks to modify certain deadlines for the execution of various obligations, in order to grant employers a reasonable time frame for their due compliance.

Within its main modifications, we highlight the following:

1. The term for the Decree to be effective is extended for one month, from August 1 to September 1 of this year.
2. The term granted for the registry before the Ministry of Labor and Social Welfare for those individuals or entities who provide outsourcing services is extended from July 23^rd to September 1^st of the current year.
3. Likewise, the term granted on the article fourth of the Decree is modified, from July 23^rd to September 1^st, 2021 for the transfer of employees and, if applicable, of the assets of the company or establishment.
4. Additionally, article five is amended by extending the term to September 1^st, 2021, for those employers that have previously requested the Mexican Social Security Institute to assign one or more class-based employer registrations, to cancel such employer registrations and, if necessary, request to said Institute the granting of another employer registration pursuant to the social security legislation.
5. The obligation to provide information regarding the rendering of services or specialized works is extended until September 1^st, 2021.
6. The initiative states that from the effective date of the amendment and until September 1^st, 2021, for the purposes of the Social Security Law, the transfer of employees of companies that used to operate under the labor outsourcing regime will be considered as employer substitution, as long as their labor rights are recognized.

Lastly, it is important to mention that said bill was submitted to the labor and social welfare, finance, and public credit commissions of the Chamber of Deputies for its review; therefore, it has not yet been discussed or approved by the legislative authority.

For further information on this matter, please contact Mr. Jorge Almanza Rios, partner of the corporate area, at the following e-mail address: jalmanza@iclmx.com