Tax and legal changes are foreseen without outsourcing

Eliminating subcontracting, as established in the ruling on the labor reform promoted by the Executive Power will carry important tax and legal changes that companies must take into account to adapt to the new regulation within a period of only three months, warned specialists.

Partners at SKATT, a Firm specializing in tax services, considered that one of the most sensitive points of the project will be the transfer of workers who were subcontracted to the staff of the company receiving their services.

They explained that this adjustment will imply registering a large number of workers with labor benefits and obligations, such as profit sharing, IMSS [Mexican Social Security Institute] and Infonavit [National Workers’ Housing Fund Institute] within a maximum of three months.

Óscar de la Vega, labor lawyer and partner at De La Vega y Martínez Rojas, explained that subcontracting will only be permitted in cases of specialized services or works, as long as personnel that performs the same activity as the company is not hired and the contractor is registered in the public registry of the Department of Labor.

He added that, under this mode, the possibility of insourcing is open, that is, when a company offers services to another one belonging to the same business group, provided that they are not part of the same economic activity.

Specialists highlighted that, under the new law, there can be no companies without workers and, therefore, it will be easy for the SAT [Tax Administration Service] and the Department of Labor to identify the ones with high invoicing and low labor costs.

The World Employment Confederation (WEC), a global business association of private employment agencies, urgently called on Congress to acknowledge subcontracting of temporary personnel in the law, in a way that adjusts to the Mexican reality and to the needs of the labor market.