Representatives expect to approve the reform to outsourcing next week

Note published on April 6 in El Economista, Empresas [Companies] Section by María del Pilar Martínez.
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According to Representative Anita Sánchez, “everything is ready for conducting the discussion and analysis of the proposal made by the Executive Power, we will have enough time to rule on and to approve the modifications to outsourcing in this period.”

The proposal for the reform on subcontracting matters will advance rapidly in the House of Representatives; the document with the new agreements signed by the federal government with the employers’ and the workers’ sectors, which will be included in the bill to be discussed this week in the Commission on Labor and Social Welfare of the legislative body arrived last Monday.

According to Representative Anita Sánchez, “everything is ready for conducting the discussion and analysis of the proposal made by the Executive Power, we will have enough time to rule on and to approve the modifications to outsourcing in this period.”

The legislator said that, while the Agreement reached in Palacio Nacional [Seat of the Federal Executive Power] represents progress, subcontracting cannot be definitively eliminated “it exists throughout the world and Mexico cannot be excluded from these practices but, with the bill and with the ruling in which we will work, it is a way of putting order in over 4,000 ghost companies that evaded the payment of taxes, this will allow a greater collection.”

The legislative work that will be conducted, stated the Morena representative, will clearly establish the manner in which the employee will work, and his rights and guarantees will be set in writing. “Subcontracting companies will only be able to conduct recruiting, selection and training of workers, but they will not substitute the employer.”

It is a reform with a fiscal hue

In this regard, Ricardo Martínez Rojas, partner at the D&M Abogados Firm, stated that this “proposal is definitively a fiscal reform; what the federal authorities are seeking is having a higher income, specifically from VAT because, the way things stand now, many companies deducted this tax.”

According to representatives of the Labor Observatory, this reform proposal in all of its fiscal aspects “is one of the toughest ones because, formerly, what companies did was to deduct the entirety of the subcontracting account, and now they cannot deduct it at 100%, like they used to. They can deduct the salary; it is deducted at 30%.”