The Senate approves the reform regulating subcontracting in its general aspects

With 110 votes in favor, one against and one abstention, legislators endorsed the reform decree that only allows outsourcing in specialized activities.

The Senate of the Republic endorsed by majority – 110 in favor, 1 against and 1 abstention – the reform decree on subcontracting matters, whose central axis is regulating its use and only allowing it in specialized activities; therefore, more than 4 million workers that are hired under this scheme must be regularized once it is promulgated by the Federal Executive Power.

In a quick legislative process, of two days, senators endorsed, in its entirety, the contents of the decree sent by the House of Representatives last week, arguing that they agreed with the assessments made by the representatives of the 26 initiatives under their responsibility in attention to the key aspects that seek to eliminate abusive or simulated practices to the detriment of workers’ rights.

After the vote, the president of the Senate Commission on Labor , Napoleón Gómez Urrutia, stated “today we are making a radical change, it is probably the most important reform in labor matters by this government, so far.” He added that “we are opening a new page in the world of labor, because we are firmly advancing in the defense of labor rights and social justice.”

In this regard, Senator Patricia Mercado emphasized that “finally, after these two years; I talked in the commission about perseverance by those of us who are part of the Commission on Labor and the other commissions involved in this ruling, finally, what we voted on today is the product of an agreement and this calls for celebration.”

The content gives 90 days for adjustments

Senator Ana Lilia Rivera presented the key changes of the reform: it poses the prohibition of personnel subcontracting; it allows subcontracting of specialized services or of the execution of specialized works that are not part of the main economic activity of the beneficiary of these services or works and as long as that the contractor is registered in a National Registry of the Department of Labor and Social Welfare.

Likewise, she pointed out that subcontracting companies that seek to be registered before the Department of Labor and Social Welfare must be up to date in their tax and social security obligations; that those who perform and provide subcontracting services in an irregular manner will be severely penalized both in the administrative and in the criminal spheres.

In this regard, Mónica Flores, former president of AmCham, said that the effects of the reform will be seen over time and only in this way will it be possible to demonstrate that flexibility is essential to sustain a dynamic and recovering economy with more formal jobs.”

Héctor de la Cruz, a specialist at D&M Abogados, said that “workers may demand that their employment relationship be acknowledged by the true employer and that this employer be responsible for the payment of their salary, benefits, registration with the IMSS [Mexican Social Security Institute] among other obligations, as the work force cannot be the subject of any contract.”