Provisions for the registration of specialized services or works providers

Following the reform on subcontracting published in the Official Federal Gazette April 23, 2021, today the general provisions for the registration of individuals or legal entities that provide specialized services or perform specialized works referred to in Article 15 of the Federal Labor Law were published. They can be consulted in this link.

It is important to remember that, although the new Article 12 of the Federal Labor Law sets forth that subcontracting of personnel is prohibited, which is understood as when an individual or legal entity provides or makes available its own workers for the benefit of another, Article 13 provides that the subcontracting of specialized services or the execution of specialized works that are not part of the corporate purpose or the main economic activity of the beneficiary is permitted provided that the contractor is registered in the public registry referred to in Article 15 of the law, namely the Public Registry of Contractors of Specialized Services or Specialized Works.

In terms of the third transitory article of the labor subcontracting reform, individuals or legal entities that provide subcontracting services of specialized services or execution of specialized works, must obtain the registration before the Ministry of Labor and Social Welfare within 90 calendar days from the publication of the general provisions referred to in this alert.

It should be noted that the registration will also be mandatory for those companies that provide complementary or shared services or works in the same business group.

The registry will operate through an online platform available at http://repse.stps.gob.mx through which individuals and companies wishing to register will be able to do so.

The agreement published today recognizes as specialized services or works those that have distinctive elements or factors of the activity performed by the contractor, which are supported, among others, by training, certifications, permits or licenses that regulate the activity, equipment, technology, assets, machinery, level of risk, average salary range and experience, which provide added value to the beneficiary. Among the requirements included in article eight of the agreement is to demonstrate that the persons seeking registration are up to date with their tax and social security obligations with the Tax Administration Service, the Mexican Social Security Institute and the National Workers’ Housing Fund Institute.

Should you require further information in connection with this or assistance in determining whether your company should register, please do not hesitate to contact us.

Yours sincerely,

Cannizzo