Today, the President of the Republic of Mexico, together with the Ministry of Labor and Social Welfare and representatives of the Legislative Branch, announced an agreement with the principal representatives of the business and labor sectors regarding the reform bill to regulate subcontracting, a bill submitted at the end of last year.
This agreement stems from the various dialogue tables and forums held over the past 3 months. In this regard, and pending review of the text of the bill, which must be reviewed and, as the case may be, approved by the Chamber of Deputies and, subsequently, by the Senate, we consider the most relevant points to be the following: 1. The prohibition on the subcontracting of personnel (outsourcing or insourcing) is confirmed, consisting of an individual or legal entity providing or making available its own workers for the benefit of another. 2. The subcontracting of specialized services or the execution of specialized works is regulated, provided that they do not form part of the corporate purpose and the predominant economic activity of the contracting company, and provided that the company holds the registration before the Ministry of Labor and Social Welfare. This represents a change to the bill, since previously there was no mention of a registration but rather of an authorization and, on the other hand, there is now mention of the subcontracting of specialized services. 3. A period of three months from its publication would be granted for subcontracted workers to become part of the payroll of the actual employer (of the contracting company), in those cases involving the subcontracting of personnel. This is a relevant matter since the bill did not contemplate a period for its entry into force. 4. It is intended that the payment of profit sharing be capped at a maximum of three months' salary or the average of the profit sharing received over the last three years, whichever is more favorable to the worker being applicable. In other words, a cap on the PTU (workers' share in company profits) is proposed. Nevertheless, it is important to know the terms in which the bill will actually be amended, which will have to be reviewed and approved by both Chambers. For more information on the bill, we share the links to our newsletters of November 13 (click here) and 18 (click here), 2020. We will keep you informed of developments and remain at your disposal to advise you on the implementation of an action plan to comply with the terms of the bill. For additional information, please contact our experts: Rodolfo Trampe, Partner: +52 (55) 5258 1054 | rtrampe@vwys.com.mx Alix Trimmer, Associate: +52 (55) 5258 1016 | atrimmer@vwys.com.mx Alejandro Pérez, Associate: +52 (55) 5258 1054 | alperez@vwys.com.mx
