After four months of negotiations between the government, companies and unions on the “order” of outsourcing and the scope of a tripartite profit-sharing agreement, the Chamber of Deputies plenary generally approved the reform that governs the subcontracting of workers in the EU and the private sector federal public sector.
The legislature has approved the opinion with the tripartite agreement on the participation of employees in profits (PTU), which consists in that the amount of the PTU has a maximum limit of three months of the employee’s salary or the average participation in the PTU last three years; The most favorable amount for the employee is used.
There is a difference with regard to the entry into force of the reform for the private sector and the federal public sector. For companies, it will begin to apply on the day after its publication in the official gazette of the federal government and for the federal government. It will apply in 2022.
According to labor lawyers and union advisors, “The reform does not satisfy all sectors, after all, subcontracting is not going away. The original idea of going out of outsourcing was not possible, on the one hand it allows it and on the other.” legitimizes it, it is a complicated scenario, and the wording of the reform still allows evasive maneuvers of the law. “
Relevant points and observations
- These reforms are aimed at banning or regulating the subcontracting of non-welfare personnel under the provisions that are currently regulating.
- The proposed changes will eliminate those practices that harm labor rights by eliminating the actions currently underway through various forms of simulation to the detriment of people, workers and the treasury.
- Clear rules for employer substitution and employee registration will be proposed. A maximum profit-sharing limit of 90 days of the employee’s salary or the average of the last three years is set, whichever is more advantageous for the employee.
- Proposals were added to the agreements of the National Palace to include the seventh article in the draft decree and an article 10 Bis in the federal law of workers in the State Services, Regulatory Authority of Section B) of Article 123 of the Constitution, as well as the eighth article to add Article 2 Bis of the Regulatory Act of Section XIII Bis of Section B of Article 123 of the Constitution.
- These changes prohibit the subcontracting of staff in favor of the agencies and institutions referred to in Article 1 and that only the subcontracting of specialized services or the execution of specialized works is allowed, provided that the contractor is in the public register that the Ministry of Labor and Social Affairs (STPS) will have.
- In addition, the first transitional article has been amended so that “the provisions of articles seven and eight of this decree will come into force in fiscal year 2022.
- The tenth temporary has also been added to indicate that the bodies and bodies of the federal public administration involved in the implementation of this decree will take the necessary measures to ensure that the expenses resulting from the entry into force and implementation are chargeable to the budget that each has been approved by them in the current and subsequent financial years.
- The difference between subcontracting specialized services or performing specialized work is noted, unless they are part of the company’s purpose or the predominant economic activity.
- There is an obligation for these companies to be entered in the registry responsible for the STPS so that, before entering into a contract, they can demonstrate the specific nature of the services they provide and are up to date with their tax obligations and social security.
- Relevant institutes and authorities to verify compliance with the tax obligations set out in various laws celebrate cooperation agreements with the STPS on the exchange of information and the implementation of joint verification measures in the respective area of responsibility.
- Sanctions will be tightened for employers who refuse to conduct inspections, as well as those who subcontract in violation of the law.
- The temporary articles stipulate that the reforms will take effect the day after their publication, that companies providing subcontracting services must be registered with the STPS within three months of their publication, and that the Ministry of Labor 30 Days to publish the new rules for this registry.
SYMBIOSIS is actively advising Canadian companies with operations in Mexico on all aspects of the broad Legal Compliance and Corporate Governance. We are tracking developments and are available to assist foreign investors with questions about Mexico’s legal framework and strict compliance options.
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