Mexico: Labour outsourcing regime related reforms initiative
On 12 November 2020, the Federal Executive submitted a Law initiative before the Mexican Congress containing several reforms.
On 12 November 2020, the Federal Executive submitted a Law initiative before the Mexican Congress containing several reforms to the Federal Labour Law, the Social Security Law, the National Housing Fund Institute for Workers Law, the Federal Fiscal Code, the Income Tax Law the Value Added Tax Law with aims to regulate the labour outsourcing (“outsourcing”) regime in Mexico.
The initiative filed by the Federal Executive must yet to be approved by the Congress. If approved as it is currently being proposed, the initiative would drastically affect the operation of Mexican companies since it would eliminate the possibility of having an “insourcing” or a service company within the same group, even though the same had been in due compliance with their tax and social security obligations.
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