Filing amparo suits due to the reform to outsourcing is being evaluated

Note published on May 6 in El Financiero, Economía [Economy] Section by Zenyazen Flores.
Read original source

Companies and even some unions are in the stage of evaluation of filing petitions for writs of amparo against the reform to outsourcing, as they consider that the new regulation impacts the operation of organizations and, in the case of unions, the amount received as Profit Sharing is affected.

“It is feasible that there will be companies that will file petitions for writs of amparo against this reform, there are companies that are seriously affected, particularly by the prohibition of subcontracting”, anticipated Luis Ruiz Gutiérrez, partner at Hogan Lovells.

He said that it is believed that the amparo suits will be presented individually by companies and he said that the fact that the reform was agreed upon by consensus between the private sector, unions and the government does not limit the right of companies or union organizations to impugn the reform.

During the “Outsourcing in México: What you need to know about the Reform” webinar he mentioned that another motive for presenting writs of amparo is the way in which Employee Participation in Profit Sharing (PTU) was regulated, as there are sectors that will be affected in the distribution of this benefit.

The reform to the Federal Labor Law (LFT) establishes that that the amount of participation in profit sharing will have, as an upper limit, three months of the worker’s salary or the average of the participation received in the last three years; the amount that is most favorable to the worker will apply.

Ruiz Gutiérrez believes that “this manner of profit sharing will generate controversy and confusion and it will probably bring impugnation by unions or by non-union personnel that will be upset because they will be expecting a certain amount of profits; upon the application of these caps, it could generate dissatisfaction with the received amounts.”

For his part, independently, Ricardo Martínez Rojas, founding partner of the De La Vega & Martínez Rojas Firm, agreed that there are companies that are evaluating the possibility of resorting to amparo suits because the only contracting that will be allowed is that of specialized services or works that do not fall within the main corporate purpose of the main commercial activity of the contracting party.