Mexico: Mexican Authorities Fine 25 Companies for Breach of the Subcontracting Reform
The Secretariat of Labour and Social Welfare has set a goal of over forty thousand labour inspections related to the new regulations of the subcontracting reform, will take place this year.
Since the publication in the Official Journal of the Federation on 23 April 2021, employers throughout Mexico, who provide specialised services have had to comply with new regulations; many of which require the employers to regularise and rectify their legal and financial status with the labour and tax institutions, including the proper registration before REPSE; this last requirement is mandatory and according to the authorities, all information collected is for bona fide research purposes. However, the government has the capacity to inspect any employer in order to verify the veracity and existence of the information and documents collected at registration. Because of this, the Secretariat of Labour and Social Welfare has dispatched inspectors with the sole task of verifying topics regarding the subcontracting reform, who have found inconsistencies and the lack of backed-up documents while inspecting.
Key Action Points for Human Resources and In-house Counsel
Employers must be very careful in order to comply with new regulations, as well as new registration obligations, and they must be thorough with every requirement, because any such breach will result in financial repercussions.