Amparo suits against the reform to outsourcing are anticipated

Note published on May 6 in Reforma, Negocios [Business] Section by Verónica Gascón.
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A shower of amparo suits awaits the reform for the regulation of outsourcing, experts from the Hogan Lovells Firm anticipate.

They consider that these suits will be filed by several affected human capital companies and non-union employees that receive a lesser amount as profit sharing.

Luis Ricardo Ruiz, an expert in labor law at Hogan Lovell’s, explained that the cap of three months of salary will be the maximum limit that workers may receive.

“(This) will generate a great deal of controversy, it will create confusion, and this will probably bring impugnation by unions of by non-union personnel”, he warned.

The cap on profit sharing can also be calculated as the average of the profits of the last three years, whichever is more beneficial to the worker.

On the other hand, he said, companies in the line of business of personnel outsourcing could also object since they will no longer be able to make personnel available to other companies.

“I believe that it is feasible that there will be companies that file amparo suits against this reform; evidently, there are companies that are seriously affected, particularly those in the outsourcing business”, Ruiz pointed out.

He explained that in order to impugn, those that are dissatisfied will have a term of 30 days to present the petition for a writ of amparo, starting on April 24, when the reform entered into force.

Another form of amparo is when the authority intends to enforce action for any breach.

To comply

The reform entails changes within companies that used the insourcing and outsourcing modes.

  • Article 13 is amended to allow subcontracting of specialized services or for the execution of works that are not part of the corporate purpose or of the main economic activity of the beneficiary.
  • Companies must be registered in the public registry provided for in Article 15 of the Law.
  • Article 14 warns that subcontracting must be formalized by means of a written contract in which the objective of the services to be provided or the works to be executed is specified, as well as the approximate number of workers that will participate in the fulfillment of said contract.Source: D&M