The STPS reinforces its surveillance on subcontracting

Note published on February 6 in El Sol de México, Finanzas [Finance] Section by Bertha Becerra.
Read original source

On February 6, the Department of Labor published a series of amendments in regard to the surveillance performed on companies that provide specialized services and those who hire them.

The Department of Labor and Social Welfare (STPS) published in the Official Gazette of the Federation (DOF) amendments to the executive order through which the new provisions of a general nature for the registration of natural persons or entities that provide specialized services or execute specialized works and inspections on said matter are made known.

The inclusion of the Chapter on Surveillance stands out; this chapter describes these surveillance actions to be conducted by the STPS in relation to the natural persons or entities that are subscribed in the Registry of Providers of Specialized Services or Specialized Works  (REPSE) and the companies that benefit from these services.

This reinforces surveillance activities and clearly establishes the requirements that will be requested at the moment in which an inspection is carried out.

Likewise, it is established that the STPS can request, at any time, additional information or documentation from companies that are applying for registration, any government entity or companies that benefit from specialized services or works in order to corroborate and validate the information provided by the requesting company.

Another change is that users, if they so require, can now request the cancellation of their registration notice and will have the possibility of amending or updating their registered activities as well as make modifications to the platform for the benefit of the users.

A flood of inspections is expected

In regard to these recent changes to the regulation of labor subcontracting, lawyer Héctor de la Cruz, a specialist in Labor Law, told El Sol de México:

“The new executive order on the provisions of the Federal Labor Law (LFT), in its Article 15, regarding the registration of companies providing specialized services was published in the Official Gazette of the Federation (DOF) on February 3.”

Among other things, articles are amended and added, in addition to a series of provisions that explain the effects for the service provider and for whoever hires him in the event that the contracts are not a match with the core objective of the company.

Or even that the salary reported to the Mexican Social Security Institute (IMSS) is not the real one, which could cause their cancellation in the Registry of Providers of Specialized Services or Specialized Works  (REPSE).

According to labor lawyer Héctor de la Cruz, the noteworthy point of these amendments is that the company that benefits from the services will be another source of information and corroboration for the Department of Labor and Social Welfare (STPS).

Additionally, the STPS will be aided in the inspection of both registered companies and the beneficiaries of their services by the registry comprised of the companies that registered in accordance with the provisions of Article 15 of the LFT. “That is, a flood of inspections”, he said.

The specialist from the De la Vega & Martínez Rojas Firm, told El Sol de México  that during the inspection the STPS will verify that the information that was registered at the subscription of the company to the STPS Registry matches the day-to-day reality.

The STPS will also verify strict compliance with the provisions of Article 13: “That the activity is not part of the corporate purpose or of the main economic activity.”

Additionally, the inspection will put emphasis on the provisions of Article 14, that is “that the agreements for the provision of the services are in place.”

And, in his opinion “the causes for the cancellation and, now, the modification of the registration notice are ratified.”

In summary, he stated: “There is an avalanche of inspections coming.”

That is, all specialized service companies that subscribed will be reviewed. “Nevertheless, this does not mean that those that did not register are exempt from complying with the law.”

And it is therefore possible that companies not registered in the REPSE will be inspected and, if they are subcontracting personnel they will be penalized, “because simulation still persists”, explained lawyer De la Cruz.