Chihuahua, Chih., February 17th, 2023.

Dear Clients and Friends

On February 3^rd , 2023, the Ministry of Labor and Social Welfare (STPS) published in the Federal Official Gazette (DOF) a decree which amended a series of provisions related to the Registry of Specialized Services Providers or Specialized Works (REPSE), creating new obligations for service providers and beneficiaries of specialized services.

Among the modifications contained in said decree, the following stand out:

1. The STPS may request information from companies that are beneficiaries of the services or specialized works.
2. The criteria that labor inspectors will verify during the inspection of service providers and beneficiaries is detailed.
   • To renderers: i) that the activities that are subject to specialized services do not form part of the preponderant activities of the beneficiary, ii) the service and specialized works agreements pursuant to Article 14 of the Federal Labor Law (“LFT”), iii) that the information provided in the registry platform coincides with the actual conditions of the work center, and that the obligations to register employees before the IMSS are met, and iv) that the salary is paid pursuant to the provisions of the LFT.
   • To beneficiaries: i) that the service provider’s employees are duly identified with badges and distinctive elements, ii) that they have entered into agreements for specialized activities, and iii) that the outsourced employees do not perform activities that fall within the corporate purpose or main activity of the company.
3. An administrative procedure will be filed as a sanction for those who fail to comply with the inspected criteria.
4. Registry may be cancelled by the authority if the documents or data provided online differ from those collected during the inspection visits.
5. Individuals or legal entities may at any time cancel their registry or request the registration of new activities.

Consequently, due to the amendments previously described in decree, the following recommendations are hereby offered:

1. Verify that its corporate purpose does not include activities similar to the contracted specialized services or works.
2. Review and ensure that the actions performed within the company by the service providers coincide with  the agreements for specialized services or works. And that the personnel is fully identified as a service provider.
3. Be prepared for possible requests for information and/or documentation, questioning or inspection visits by the labor authority.

If you would like further information, please do not hesitate to contact Mr. Rolando Castellanos Macal at rcastellanos@iclmx.com; and Mr. Jorge Almanza Rios at jalmanza@iclmx.com