Outsourcing, what it means. The term is an anglicism composed of the voices outside, which means “out”, and the source, which translates to “source”. Therefore, in Spanish, we define outsourcing as an external source. -There will be harsher penalties for illegal outsourcing: it will be assimilated to tax fraud; For those who do not comply with the new regulations, fines of 173,000 to 4 million pesos have been set and the tax deduction is prohibited. To launch a digital transformation process in companies, outsourcing can be the first step. Since this diagram makes it easier to familiarize companies with new technologies. But it also makes it possible to integrate these innovative systems into the organization`s processes. “These regulations could deter foreign investment,” he noted. “Many international companies that rely on outsourcing to operate in Mexico could eventually leave. Companies need to assess the financial impact of implementing these changes and explore alternatives. With the new provisions of the law, the key is this: it is legal to outsource specialized work or services to subcontractors as long as they are NOT the contractor`s core business. Tax evasion and non-compliance with employee obligations are the main bad practices related to outsourcing in Mexico.

To eradicate them, the current government of Manuel López Obrador intends to reform the Federal Labour Law 2020. With this reform of the outsourcing contract system, many companies will have new obligations to their employees. “We will introduce a bill to put everything related to outsourcing in order. This has been used as a form of tax evasion and affects workers. De esta forma, el presidente Manuel López Obrador anunció su intención de reformar la ley para regular el outsourcing en México. Members can download a copy of our sample forms and templates for their personal use in your organization. Please note that all of these forms and policies should be reviewed by your legal counsel to ensure they comply with applicable law and are appropriate to your company`s culture, industry and practices. Neither members nor non-members may reproduce these samples in any other way (for example, for republication in a book or for use for commercial purposes) without the permission of SHRM. To request permission for specific items, click the Reuse Permissions button on the page where you find the item. La figura de subcontratación u outsourcing es un esquema laboral bajo el cual una empresa terceriza el servicio de contratación.

If you work for one company, but your contract is not signed by that company± but by another, you©may be working under the outsourcing or outsourcing program. Since 2021, when a labour reform took place, the prohibition for companies to stop subcontracting services has been introduced, understood as the series of basic activities for the company`s corporate purpose, but carried out by employees of a third-party company. Outsourcing is one of the most common processes in medium and large companies around the world. This is due to the advantages it offers to businesses. Among them we can highlight: In April 2021, the Mexican government enacted labor and tax laws prohibiting the outsourcing of workers. Several experts said Mexico`s modified outsourcing rules will have a significant impact on companies that hire subcontractors. In this article, we will analyze the initiative against outsourcing in Mexico: Similarly, companies have a period of 90 days from the entry into force of the decree to regularize their employees and eliminate outsourcing and internalization programs. This Wednesday©, September 1, the reform of outsourcing in Mexico©comes into force. For many companies, this outsourcing reform meant that employees who worked for them were added to their payroll even if they were hired by another company. According to the Mexican Social Security Institute, about 5 million people worked in the subcontracting system before the reform; By the beginning of August, half of them had already left to be hired directly by the companies they work for. This change is positive for workers, as it brings them benefits such as access to social security, benefit sharing, recognition of seniority, among others. The main problem with outsourcing in Mexico was that it facilitated the transition of various key areas of companies to other companies that provided lower staff, salaries and benefits than core staff, with the same responsibilities.

The outsourcing reform in Mexico©prohibits the subcontracting of personnel and only allows the subcontracting of specialized services or the performance of special work that is not part of the corporate purpose or predominant economic activity of a company. The Minister of Labour and Social Affairs estimated that around 300,000 workers who were subject to hiring and outsourcing arrangements have already been recognised and transferred by the companies for which they actually work. To date, many employers in Mexico rely on the work of outsourced employees to fulfill their contractual obligations to their customers, Rangel explained. According to the Asociación Mexicana de Empresas de Capital Humano or the Mexican Association of Human Societies, about 4.5 million Mexican employees work under outsourcing service contracts. Of course, not all of them are advantages when we talk about outsourcing companies. Some of the main disadvantages of this work program are: And in this last point, one of the main disadvantages of outsourcing lies in Mexico. Because within these resources, people are most often used, that is, talents. In Mexico, some companies use outsourcing to facilitate human resource management and reduce the time and costs of their business. As mentioned earlier, Outsourcing 2020 in Mexico is a legal system governed by the Federal Labor Law. However, it is also a modality that has led to irregular subcontracting practices in many companies.

This generates the greatest criticism of the activity. The countdown begins in such a way that all companies adapt to the lines marked by the reform of outsourcing or subcontracting of personnel. On April 20, the Senate approved this reform and on April 24, it came into force. If you`re wondering, what is outsourcing to Mexico? In this note, we will explain in detail what outsourcing in Mexico means. HR departments need to understand, adapt and comply with changes in outsourcing in Mexico, Rangel noted. The changes to outsourcing included the reform of seven laws: the Federal Labour Act, the Social Security Act, the National Employee Housing Fund Institute Act, the Federal Tax Act, the Income Tax Act, the Value Added Tax Act and the Federal Law on State Employees. ▶ If your business is dedicated to making furniture, you can NOT outsource to those who make it, but perhaps you could outsource the distribution, advertising, and sale of furniture, as well as cleaning, accounting, advertising, etc. All these services must be provided by providers legally registered with the STPS. ▶ On the other hand, if your bylaws state that you are involved in the manufacture, distribution, and sale of furniture, you cannot outsource the hiring of those who make, distribute, or sell it.

Everyone should be part of your staff. Outsourcing leads to workers being denied work performance, Mexican President Andrés Manuel López Obrador said when he sent Congress a proposal to ban outsourcing by companies without prior government approval, according to Mexico News Daily.