It is raining amparo suits against outsourcing

Companies started filing writs of amparo against the reform that eliminated outsourcing, published on April 23, as a consequence of which only subcontracting of specialized services that are not part of the corporate purpose is permitted.

Federal courts in Mexico City and Monterrey received, in the last three weeks, writs of amparo from at least 135 companies including Pepsico, Gamesa, Maizoro, Siemens, Comercial Mexicana and Sumesa, Mary Kay Services, Frisa and Park Royal hotels.

The majority of the claimants, however, are medium-sized and small firms that offered personnel to other companies.

Some amparo suits contest the entire reform, others only challenge the term of 90 days for the formerly outsourced personnel to become employees of the true employer.

The majority of the amparo suits have not been admitted, as judges in labor matters consider that this is an administrative issue, while administrative judges maintain that it is a labor issue.

Labor lawyers warned that the implementation of the reform is confusing, and the term of three months established by the law for eliminating subcontracting is insufficient.

“The companies that filed amparo suits did so because they do not have sufficient time to make the adjustments they have to make, they are companies that have thousands of workers, but the only way for them to have more time is through an amparo suit”, acknowledged Oscar de la Vega, a lawyer at the [De la Vega y Martínez Rojas] Law Firm.