On November 30th, 2012 a series of Federal Labor reforms were published in the Official Federal Gazette. The labor reform, which has been promoted as a tool for increasing the productivity of the country, was generally well received by the business and labor community, since it introduced novel legal concepts.
Federal Labor Law Reforms regarding "Subcontracting"
December 11th, 2012.
One of the aspects that has been controversial , however, is regarding subcontracting. Many abuses have been committeed in recent years through subcontracting.,attempting to eliminate or reduce labor rights (principally benefits) and to entirely or partiallly evade the payment of contributions to social security. In order to combat these abuses, the Congress of the Union introduced a series of limitations on subcontracting; however,they have caused concerned among the business and legal sector because the regulation introduced is not completely clear or specific regarding how it should be applied. This brief note describes the reforms introduced regarding subcontracting and the effects such regulation may have on companies and their operations in Mexico.
Please refer to the attachment or click here. For additional information contact:
Javier Lizardi, Partner: jlizardi@vwys.com.mx
Luis Burgueño, Partner: lburgueno@vwys.com.mx
Rodolfo Trampe, Associate rtrampe@vwys.com.mx