In their crosshairs
A coordinated inspection and surveillance strategy to detect outsourcing practices was first adopted in 2019.
|§ The STPS [Department of Labor and Social Welfare], the IMSS [Mexican Social Security Institute], the SAT [Tax Administration Service] and the Financial Intelligence Unit and the Office of the Attorney General for Fiscal Matters participated in the strategy.
§ An example of the practices found is: 14 thousand 553 companies terminated all of their personnel in December of that year and rehired part of said personnel in January, 2020.
|§ Each one of these companies had between 100 and 500 workers, or more, and affected over 60 thousand workers with this practice.
§ They found that the decrease in the collection of IMSS dues caused by illegal subcontracting was of 21 thousand million pesos.
§ They also found that around six thousand companies conducted abusive subcontracting, affecting over 860 thousand workers.
Mexico City (March 05, 2020).- The terms of the ruling on the reform to the Federal Labor Law in regard to outsourcing were moderate, in contrast to the original project presented by Senator Napoleón Gómez Urrutia, informed labor lawyers.
In the opinion of experts, the main change is that the connotation of outsourcing being a criminal practice was removed, which creates certainty in the business sector.
“The ruling includes several interesting points because, on one hand they removed the notion of criminalization and, on the other, the creation of a registry of companies is being considered and this could bring uncertainty in regard to this topic. It is necessary to see what changes are planned to be made to the ruling, but, in general terms, it is somewhat more moderate than expected”, pointed out Germán de la Garza, of the Morwat Law Firm.
The ruling is expected to be discussed in the Joint Commissions of Labor and Social Welfare and Legislative Studies.
The ruling establishes that the contracting party is jointly liable for the obligations assumed toward the workers.
This, with the objective of ensuring that workers are not left unprotected in the event that their labor rights are violated by the outsourcing company.
Additionally, the contractor must be registered in the National Registry of Subcontracting Companies, which will be managed by the Department of Labor.
In order to be registered in said Registry, compliance with employers’ obligations must be guaranteed.
Furthermore, Article 15-D establishes that the subcontracting regime will not be permitted when workers are transferred from the contracting party to the subcontracting party with the objective of reducing labor rights.
For his part, Oscar de la Vega, of the De la Vega & Martínez Rojas Firm, pointed out that the supervision over companies will increase through the outsourcing companies’ registry.
“This means strengthening the State’s supervisory capability which, to the extent that there is no corruption and the people in charge of this operation are properly trained, could be a good thing. However, it can lead to a high degree of corruption, particularly in the absence of training, as can be seen in the case of labor inspectors”, stated De la Vega.
The ruling also establishes that employers who refuse to receive inspectors from the labor authorities will be subject to a fine of 250 to 5 thousand times the Unit of Measure and Update.