Approval by the Senate of the reform initiative on subcontracting

Approval by the Senate of the reform initiative on subcontracting

In previous days we reported on the approval by the Chamber of Deputies of the reform initiative to regulate subcontracting. Following up on this, we hereby inform you that today it was likewise approved by the Senate. This means that the reform has been approved in its entirety, and only its publication in the Official Gazette of the Federation (DOF) remains for it to enter into force, which is expected to occur on May 1 or earlier.

The main points of this widely discussed reform are: 1. Prohibition of the subcontracting of personnel. The subcontracting of specialized services is permitted. 2. Registration of individuals and legal entities that provide specialized subcontracting services. 3. Cap on the payment of profit sharing (three months' salary or the average of the share received over the last three years). 4. Sanctions for those who violate the provisions of the reform (joint and several liability, non-deductibility and non-creditability, and fines). For further information regarding the content of the reform, we share our latest publication (click here). We reiterate that we are at your disposal to resolve any questions regarding this significant reform, which will undoubtedly entail restructuring in most companies, and to support you in the drafting and implementation of action plans to comply with the reform. For additional information, contact our experts: Rodolfo Trampe, Partner: +52 (55) 5258 1054 | rtrampe@vwys.com.mx Fernando Moreno, Partner: +52 (55) 5258 1008 | fmoreno@vwys.com.mx Jorge Díaz Carvajal, Associate: +52 (55) 5258 1008 | jdiaz@vwys.com.mx Alix Trimmer, Associate: +52 (55) 5258 1016 | atrimmer@vwys.com.mx Diego Benítez, Associate: +52 (55) 5258 1008 | dbenitez@vwys.com.mx Alejandro Pérez, Associate: +52 (55) 5258 1054 | alperez@vwys.com.mx