On Friday, April 23, 2021, a decree that reforms labor
outsourcing in Mexico was published in the Federation's
Official Gazette. This new decree amends the outsourcing provisions
of the Federal Labor Law (FLL), the Social Security Law, the Law of
the Institute of the National Housing Fund for Workers, the Federal
Fiscal Code (FFC), the Income Tax Law and the Value Added Tax
Law.
The new language of the law expressly prohibits
subcontracting, defined as the practice of providing
or making available workers for the benefit of another person or
legal entity.
Further, a contractor would be allowed to provide services
or perform specialized works that are not part of the corporate
purpose or the economic activities of the beneficiary as long as
the provider is duly registered as a provider of specialized
services with the Ministry of Labor and Social Welfare (STPS,
for its acronym in Spanish).
