On Sunday, August 1, the Decree by means of which several provisions in labor matters within the Mexican legal framework were amended (the "Decree") went into effect, all of this with the purpose of taking a step forward with the reform that prohibits outsourcing, for which the following points were established:

I)   Registration 
To perform work under the subcontracting regime, individuals or legal entities must obtain registration with the Ministry of Labor and Social Welfare no later than September 1, 2021. 


II)  Transfer of the Company's Subject Assets

For companies operating under a subcontracting regime, the transfer of the assets of the company or establishment will not be required until September 1, 2021, provided that the contractor transfers the workers to the beneficiary within such term, recognizing their labor rights, including the seniority generated as a result of the labor relationship.



III)   IMSS 
Employers who have requested the IMSS to assign one or more employer registrations by class, in order to register their workers at the national level, will have until September 1 to cancel such employer registrations and, if applicable, request the IMSS an employer registration in terms of the provisions of the Regulations of the Social Security Law.

IV) Specialized Services and Specialized Works
Individuals or legal entities that provide specialized services or perform specialized works must provide the complete information of the company referred to in Sections I and II of Article 15 A of the Social Security Law until September 1, 2021, after the Secretary of Labor and Social Welfare makes available to such persons the mechanism for obtaining the reference document.

V)  Employer Substitution 
For purposes of the Social Security Law, from the effective date of this reform and until September 1, 2021, the migration of workers from companies that operated under the labor subcontracting regime is considered as employer substitution, provided that the company to which the workers are sent recognizes their labor rights, including their seniority and the terminated labor risks before the corresponding legal authorities.

If you require further information about this note, please contact us at info@rapa.mx.