On 23 April 2021, the Mexican government published a decree to
prohibit companies from relying solely on subcontracting. The
'outsourcing regulation' is designed to bring more workers
into the formal economy and claim back the rights of workers who
have not received adequate protection as subcontractors.
The regulation will significantly impact many companies,
including those with internal shared services, and those that are
being served by a provider with a subcontractor model. With the
different pieces of regulation coming into force on or before 1
August 2021, it is vital for companies to act right away and ensure
that their structures and processes comply with the new law, ahead
of the impending deadline.
