Outsourcing is an English term that in Spanish means subcontracting.           

It is an economic process, also known as outsourcing, which consists of contracting third party companies or individuals to provide specialized services.         

An organization hires an outsourcer and delegates to him or her a certain responsibility or specialized task that may or may not be entirely related to the line of business in which the company is engaged.

Outsourcing in Mexico

In Mexico we are seeking to regulate the abuse of subcontracting, there have been many companies that used outsourcing or creating an insourcing company in their group, to reduce the rights of workers, especially in the payment of PTU (Employees’ Statutory Profit Sharing).

On the other hand, several paper companies have been created with the purpose of issuing invoices without backing for services generated, thus seeking to avoid paying taxes.

Prior to the publication of the reform to the laws in the tripartite meeting, the business sector insisted on establishing the PTU payment ceiling, since it was not equitable and discourages the development of business activities.

Outsourcing Reform in Mexico

The reform published on April 23, 2021 refers mainly to the LFT, but at the same time influences the provisions of other laws. It prohibits the subcontracting of personnel to keep the payroll of the workers that should remain with the beneficiary, also the reform to the law establishes the limit of payment of PTU.

On the other hand, specialized services or works rendered in activities that are not part of the main corporate purpose and preponderant economic activities of the beneficiary, are allowed as outsourcing, i.e. the beneficiary must hire its own personnel to develop the activities of the main corporate purpose and preponderant economic activities. Also the rendering of services between companies of the same group will be considered as specialized services.

Registration with the STPS is required for individuals or legal entities that perform specialized services or works and for this purpose provide or make available their own workers for the benefit of another, must perform the following.

Apply for registration before August 24 (Congress is discussing the possibility of extending the deadline).

After 20 days after the request, if no notification is received within this period, a request for notification of the resolution may be made within 3 days, and if there is no response within the same period, the registration will be deemed to have been effected.

The secretary may deny or cancel the registration of those who do not meet the requirements at any time.

Those who obtain their registration will be included in a public registry that will be available for consultation on the Internet.

Those companies that have engaged in the outsourcing of personnel within the beneficiary’s group may liquidate the company, merge with the beneficiary or may opt to spin off the company or continue to operate as a specialized service provider.

It should be noted that, as of July 25, subcontracting that is not regulated will be penalized.