Mary Kay opens the door for more legal proceedings

Note published on June 14 in El Financiero, Economía [Economy] Section by Zenyazen Flores and Ignacio Alzaga.
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Ricardo Martínez Rojas, founding partner of the De La Vega & Martínez Rojas Firm, pointed out that that there are more companies that have filed amparo suits because they consider the reform on subcontracting to be “unconstitutional”.

Mary Kay obtained a stay of execution against the reform on labor matters through which outsourcing is regulated; it is the first provisional stay that has been granted, according to sources.

It named, as the government action being contested, the executive order amending, adding to and derogating various provisions of the Federal Labor Law, the Social Security Law, the Infonavit [National Workers’ Housing Fund Institute] Law, the Federal Tax Code, the Income Tax Law and the Value Added Tax Law and of the Federal Law of Workers at the Service of the State, Regulatory Law on Part B) of Article 123 of the Political Constitution of the United Mexican States.

These laws were amended to regulate labor subcontracting in the sense of only allowing specialized services or works through contractors that must be registered, starting on May 24, in the Public Registry of Contractors of Specialized Services or Works

Ricardo Martínez Rojas, founding partner of the De La Vega & Martínez Rojas Firm, pointed out that there are more companies that have filed amparo suits because they consider the reform on subcontracting to be “unconstitutional” and he added that, after the temporary stay was granted in favor of Mary Kay, the door has opened for more companies to seek amparo proceedings.

He explained that firms that feel that they have been aggrieved can still file an amparo suit, not against the law, because that possibility ended on June 6, but it could be against the first act of application, in which several moments stand out; one at the time of registration in the registry as, if subscription is denied, it is possible to resort to the legal remedy.

“Several amparo suits have been filed, it is probable that more could arise, and we expect the same courage from other judges and that they grant the stay, as it is impossible to comply in 90 days and it is totally against the Constitution to prohibit a lawful activity”, he said.

Guillermo Mendieta, member of the Technical Commission on Tax Auditing of the Public Accountants Association of Mexico (CCPM), agreed that the provisional stay could encourage other companies to seek amparos.

“The first act was to impugn the reform, and they have done so, there has been a ruling”, he said.