Recently, Mexican President Andrés Manuel López Obrador filed a proposal before Mexico’s congress to reform the practice of subcontracting labor. According to the document sent to the legislative branch, the Mexican government seeks to:
The proposed ban would be enforced by fines or charges of tax evasion.
Similar proposals were also discussed in both the House of Representatives and the Senate, but no vote has occurred. Therefore, this is the third legal reform proposal, but the first filed by the Mexican Executive Power.
We regularly monitor the Mexican legislative agenda and can react quickly to any changes that may impact our clients. For clients requiring an analysis of their labor and employment structure to discover how the subcontracting reform could impact their organization, please contact Angel Ramirez.