Initiative for the extension of deadlines on labor subcontracting

Two initiatives have been presented before the Permanent Commission of the Congress to amend transitory articles of the Decree that amended several transitory provisions regarding labor outsourcing, published on April 23, 2021 in the Official Federal Gazette.

The transitory articles of the relevant decree set forth certain deadlines for employers to transition to a state of compliance with the new regulation, including a deadline to transfer their employees from the service company (outsourcing or insourcing) to the operating company and to register in the registry of specialized contractors of the Ministry of Labor.

The initiatives presented to the Congress by MORENA and PAN seek to respond to the request made by multiple employers seeking a longer term to allow them to conclude the pending procedures for the regularization of their workforces and the registration of their services.

In view of the presentation of such initiatives, the Technical Council of the Mexican Institute of Social Security (IMSS) has decided to extend, as an administrative facility, according to a press release, the deadlines for compliance with the obligations exclusively related to social security arising from the labor reform until such time as the Congress resolves the initiatives presented.

As indicated, the aforementioned initiatives are in the process of discussion; therefore, it will not be possible to consider the existence of any modification to the subcontracting reform published last April until the Congress approves it and such resolution is sanctioned by the Federal Executive and published in the Official Federal Gazette.

Should you require further information in connection with this matter, please do not hesitate to contact us.

Yours sincerely,

Cannizzo