“A semi-formal relationship would be illegal and it would leave workers unprotected in the same manner or even in a worse one that outsourcing”, said the lawyer, a specialist in Labor Law.
If subcontracting or outsourcing disappear, companies will find it necessary to opt for other semi-formal hiring avenues; this is a relationship that meets only certain obligations and excludes others, said Héctor de la Cruz, a lawyer specialized in Labor Law.
“In any case, a semi-formal relationship would be illegal and it would leave workers unprotected in the same manner or even in a worse one that outsourcing”, he continued.
He pointed out that, in terms of the law, a formal relationship is that in which the employer complies with the payment of the worker’s salary, benefits and social security and pays the respective taxes, Mexican Social Security Institute (IMSS), Infonavit [National Worker’s Housing Fund Institute] and retirement fees, among others.
Consequently, a “semi-formal” relationship would be the one in which the employer only pays the salary, but does not register the workers in the IMSS, or reports a lower salary for tax purposes and pays the remaining portion in cash, to avoid the payment of taxes.
“In my opinion, the reform on subcontracting will not be the cause for contractual relationships to move to a semi-formal relationship. Nevertheless, the effects that it may have on the different branches of industry need to be analyzed, identifying fragile sectors that may require special support to avoid subcontracting or informality”, emphasized the specialist from the De la Vega & Martínez Rojas Firm.
For Héctor Márquez, director of Institutional relations at ManpowerGroup, if the reform to the subcontracting mechanism is approved, 60% of companies will be able to hire directly and add the people that work in the temporary subcontracted employment mode to their workforce.
Semi-formality will make benefits less accessible
And semi-formal hiring, he agrees, would comply with the payment of taxes, but it would keep people from having access to benefits provided by law and social security.
On the formal market in this country: 19.7 million people registered in the IMSS, 14% is temporary personnel.
Subcontracting of temporary personnel creates savings and is more efficient for the majority of companies. That is why micro, small and medium companies (mipymes) resort to subcontracting.
As of the closing of 2020, according to the IMSS, 2 million 766 thousand 379 people found a job opportunity in temporary employment.
And the sectors with the greatest number of temporary workers last December were transformation industries with 776 thousand 562; Services with 585 thousand 451 and construction with 542 thousand 122 people.