The key to the success of the reform on outsourcing will lie in the STPS regulations: experts

Note published on April 14 in El Economista, Empresas [Companies] Section by María del Pilar Martínez.
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In accordance with the order approved by legislators, the agency will have one month, from the entry into force of the reform, to present these regulations, which are waited for by companies engaged in personnel subcontracting.

The eradication of bad practices and the innumerable modes that arose with outsourcing will be in the hands of the Department of Labor and Social Welfare (STPS) who will have to prepare regulations on which are works that are considered to be specialized and can be subcontracted by companies.

According to specialists, the key to the success of the reform on subcontracting matters that the House of Representatives approved last Tuesday will lie in the regulations “this part that is the responsibility of the Department of Labor, because it will be the one who will determine which are specialized works and the force that will be exerted in the case of simulation which will still be attempted”, said the coordinator of the Labor Observatory, Alfonso Bouzas.

In accordance with the order approved by legislators, the agency will have one month, from the entry into force of the reform, to present these regulations, which are waited for by companies engaged in personnel outsourcing.

In turn, Óscar de la Vega, founding partner of D&M Abogados, explained that once the reform is approved by the Senate, “there can be no companies with no workers, it will be easy to identify those companies that have high invoicing and low labor costs, with the aid of the SAT [Tax Administration Service] and the Department of Labor and Social Welfare, it will be a topic for inspections.”

He added that “accepting that we are subcontractors has an effect, the first one is that we will be jointly liable for the workers of that company that provides services to us. Specialization was not included within the possibilities, which is also important, the STPS will be the one to determine whether a service is specialized or not; the negative part that we see in this is that when bureaucracy puts these knots in place, there is a risk of corruption, the very serious problem is that if we are seeking to encase everything, this will have serious effects on compliance with labor responsibilities.”

Thus, De la Vega pointed out, the easiest way to migrate personnel is through labor substitution, the Department of Labor only requests notice by both parties, and a transfer of assets; “however, this process can be conducted for 90 days with no complications, but it does not hurt to have this notice.”

Outsourcing in Mexico: 3 pieces of information on labor subcontracting
4.6

million workers

are calculated to be related

with some mode of

labor subcontracting.

200,000

jobs

are added each year to the numbers

of workers under some mode of

subcontracting recorded in registries.

 

 

20,000

million pesos

is what the federal government calculates as the amount

of taxes evaded due to bad practices in labor subcontracting.

SOURCE: STPS                                                                                                                      ILLUSTRATION: EL ECONOMISTA