Changes you should know about in outsourcing
The new Outsourcing Reform was approved by the Senate in April 2021. This reform regulates outsourcing, prohibiting the subcontracting of personnel but allowing the subcontracting of specialized services or the execution of specialized projects that are not part of the company's core business or primary economic activity. The goal of this reform is to prevent companies from continuing to engage in unethical practices, such as tax evasion or violations of workers' rights established in the Federal Labor Law. WHAT ARE THE MULTIPLE CHANGES TO THE REGULATION OF SUBCONTRACTING IN OUR COUNTRY? The legal changes that will be applied in relation to outsourcing are as follows: Companies that choose to disregard these new regulations will be subject to fines. OUTSOURCING FINES: IN CASE OF VIOLATION OF THE LAW… The approved modifications include reforms to the Federal Labor Law to impose a fine of up to 4,481,000 pesos (up to 50,000 UMAs) for anyone who carries out or provides subcontracting services without the corresponding registration. Likewise, changes will be established to the Federal Tax Code to consider this practice as a tax fraud offense, punishable by up to three years in prison. If an employer does not allow inspection and oversight by the authorities, they will be subject to a fine of between 22,000 and 448,000 pesos. ACTIONS THAT THE HUMAN RESOURCES DEPARTMENT MUST TAKE With this new reform, HR departments will have to implement multiple changes within companies. This department is responsible for driving organizations toward optimal management of their employees. Among the activities that will need to be carried out, we can find: These activities must be completed by August 1, 2021, at the latest, in order to be adapted to the new legislation.