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On April 23, 2021, the Federal Government published in the Official Gazette the amendment of several provisions of the Federal Labor Law, the Social Security Law, the Law of the National Workers Housing Fund (Infonavit), the Federal Tax Code, the Income Tax Law, the Value Added Tax Law (VAT), the Federal Law for State Employees, and the Federal Law regulating paragraph (b) of Article 123 of the Federal Constitution (collectively the Amendments ) to entirely modify the current regulation of personnel outsourcing.
Main Purpose
In general terms, the purpose of the Amendments is to prevent “outsourcing,” understood as a mechanism through which a beneficiary hires its required personnel through a third-party aiming to avoid or reduce employer’s liabilities and obligations under Mexican law. The Amendments’ goal is to incentivize companies benefiting from personnel to hire them directly, under labor agreements reflecting market conditions and that trigger the tax and social se
Friday, April 30, 2021
On April 23, 2021, the Federal Government published in the Official Gazette the amendment of several provisions of the Federal Labor Law, the Social Security Law, the Law of the National Workers Housing Fund (Infonavit), the Federal Tax Code, the Income Tax Law, the Value Added Tax Law (VAT), the Federal Law for State Employees, and the Federal Law regulating paragraph (b) of Article 123 of the Federal Constitution (collectively the
Amendments ) to entirely modify the current regulation of personnel outsourcing.
Main Purpose
In general terms, the purpose of the Amendments is to prevent “outsourcing,” understood as a mechanism through which a beneficiary hires its required personnel through a third party aiming to avoid or reduce employer’s liabilities and obligations under Mexican law. The Amendments’ goal is to incentivize companies benefiting from personnel to hire them directly, under labor agreements reflecting market conditions