With the prohibition of subcontracting, there will be no companies without employees

Note published on April 20 in El Universal, Cartera [Portfolio] Section by Rubén Migueles.
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Note published on April 20 in Grupos de Diarios América, Noticias [News] Section by El Universal.
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Note published on April 20 in SER News, Noticias [News] Section, by El Universal.
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Note published on April 20 in SER UNO Noticias Morelos, Noticias [News] Section by El Universal.
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Note published on April 20 in El Pulso de San Luis, Valores [Securities] Section by El Universal.
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The prohibition of insourcing and outsourcing will have an immediate effect, upon being considered to be an illegal practice, it will imply a series of tax and legal effects; “there will be no companies without workers, it will be easy to identify those companies that have high invoicing with a low labor cost,” said Oscar De La Vega, Founding Partner of D&M Abogados.

While conducting an analysis on the new provisions that will bring a change in the reform on this matter, De la Vega explained that companies will be allowed to subcontract specialized services or the execution of works that are not part of their corporate purpose or their main economic activity; “provided that the contractor is registered in the Public Registry and it must be formalized by means of a written contract in which the object of the services to be provided or the works to be executed is specified.”

Since changes will be required once the reform is promulgated, organizations must keep in mind that there are timings for compliance with the new provisions. “For employer substitution, in the case of companies that operate under a subcontracting regime, the transfer of the goods that are the object of the company or establishment during the term of 90 calendar days from the date of entry into force of the Executive Order will not be required.”

It must be taken into account that in regard to the payment of profit sharing (PTU), the amount will have a maximum limit of 3 months of the worker’s salary or of the average of the participation in profits received in the last 3 years. It should be noted that the salary is understood as the amount that each worker receives in cash as a daily wage.

For employer registration, workers must be registered; they will have a term of 90 calendar days to cancel said employer registrations and, if necessary, request employer registration in terms of the provisions of the Regulations of the Social Security Law.

Likewise, the deductibility of expenses is conditioned, conditioning it on compliance with the obligations established in the Federal Labor Law, including registration of subcontracting companies; penalizations are imposed and even the commission of tax crimes due to non-compliance is provided for.

Specialized Services

Contracting of specialized services or the execution of specialized works must comply with the conditions and requirements established in the Federal Labor Law.

  1. Said services or works may not be part of the corporate purpose or of the main economic activity of their beneficiary.
  2. The employer must be up to date in its social security obligations.
  3. The employer must register before the STPS [Department of Labor and Social Welfare].
  4. The person contracting specialized services or works with another who fails to comply with its obligations in social security matters will be jointly liable for the workers used in said contracts.
  5. Employers providing specialized services or executing specialized works may not have more than one employer registration per class.
  6. Employers with one or more employer registrations per class will have 90 calendar days to process their cancellation before the IMSS [Mexican Social Security Institute] and requesting a new one.