Companies will sign commitment to eliminate bad practices in outsourcing

Note published in El Sol de México, Política [Politics] Section by Bertha Becerra.
Read the note in its original source

Some of the business leaderships involved are the Business Coordinating Council and the Confederation of Industrial Chambers

The analysis of labor subcontracting or outsourcing stopped being discussed at the House of Representatives and, in return, the business representatives: Business Coordinating Council (CCE) and Confederation of Industrial Chambers (Concamin) will sign, shortly, a commitment for eliminating its bad practices or “insourcing”.

These bad practices are, among others, eliminating any contact in which the transfer of people to perform a job in favor of a third party is agreed, in the opinion of Labor Law specialist, Héctor de la Cruz.

Also, not establishing inferior working conditions for those working under this subcontracting mode, he said in an interview.

Companies or employers must not register their workers at the Mexican Social Security Institute (IMSS) with a salary that is lower than their actual one, which is the most usual illegal practice.

Another bad practice is to pay a part of the salary in cash in order to avoid obligations, such as the payment of Social Security, Infonavit [National Worker’s Housing Fund Institute] fees and tax evasion, he told El Sol de México.

The simulation of labor contracts should be eliminated, this is, disguising them as contracts for fees, of partnership, for professional services or any other type of contract that does not acknowledge the person as a worker.

It must be made very clear that only specialized services that are not found within the company can be subcontracted and it is not allowed to have employees in two or more companies doing the same job, with some of them earning less than others.

The Labor Law expert from the De la Vega & Martínez Rojas Firm believes that these practices must be subjected to analysis and included in the commitments that entrepreneurs will sign to counteract the negative effects of subcontracting.

And, at the same time, mechanisms for monitoring compliance with these entrepreneurial commitments must be implemented, pointed out lawyer De la Cruz.