Note published on June 18 in El Contribuyente, Noticias [News] Section, by Diego Coto.
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The basis for this is that the transition period for companies is of three months, while the transition period for the government is of one year.
The reform on outsourcing in Mexico entered into force on April 24. The fundamental change of the reform is that subcontracting is prohibited; instead, only the temporary hiring of specialized services is allowed.
To date, 135 companies have filed amparo suits against the reform. Among the most important ones, we find PepsiCo, Sumesa, Siemens, Comercial Mexicana and Mary Kay Services. Additionally, there are several small and medium-sized companies whose line of business is outsourcing.
The reasons for the amparo suits are also diverse. Some are fully focused on the reform; others on the term of 90 days for the transition of personnel to the new employer. However, one main cause can be identified: the difference in the time in which the law enters into force for companies and for the government.
Three months versus one year
The president of the Nuevo León Institute of Public Accountants (ICPNL), Nora Idalia Flores, said in May that the difference between the time of entry into force for the IP [Private Sector] and the federal government could cause the filing of amparo suits.
It is worth recalling that, in the case of the federal government, the entry into force is in 2022. In contrast, companies only have a transition period of three months.
In an interview with El Economista, Óscar de la Vega, founding partner of De la Vega & Martínez Rojas, explained that the difference is a discriminatory factor. Additionally, this could open the door for more writs of amparo to be granted.
Last week, Mary Kay became the first company to obtain a provisional stay against the reform. This means that the company can continue working under the outsourcing mode as it had been doing before the reform. According to the specialist, this also opens the possibility of more writs of amparo being filed and granted.
With information from El Economista.