Mexico: government rows back on banning the practice of employee outsourcing

On 09 December, and less than a month after submitting a bill to Mexico’s Parliament that would prohibit the practice of outsourcing workers (c.f. article No.12224), which is largely implemented and abused, the Head of State presented a tripartite agreement to ‘regulate’ the practice of outsourcing in companies. While the reform project does still remain on the table, discussions have been postponed until February 2021.
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So it will no longer be a question of ‘prohibiting’ outsourcing, as President Andrés Manuel López Obrador triumphantly declared on 12 November when presenting his government’s bill, but instead it will be a question of regulating the practice that is regularly accused of encouraging tax evasion, social security under-payments and even non-attribution of social benefits.

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