July 23, 2021

General Recommendations for Specialized Services Providers in Mexico

By Abigail Maya

Based on recently approved amendments to Mexican labor laws prohibiting the outsourcing of personnel (with the only exception being those providing specialized services), it is crucial for those companies that customarily engage specialized services to take certain actions to avoid any violations of Mexico’s new labor regulations. As such, companies with specialized service providers should consider carrying out the following actions:

  1. Prepare a detailed list of vendors to identify which vendors must be registered with the Providers of Specialized Services or Works Registry (REPSE per its acronym in Spanish) of the Mexico’s federal Department of Labor and Social Welfare.
  1. Carefully review the terms and conditions of any contracts and/or purchase orders executed with such providers.
  1. Notify service providers of the implications of the amendments described mentioned and request their compliance with each and all obligations set forth in the new regulations, including, including registration with the REPSE, and requesting specific documents to verify such compliance.
  1. Depending on the review of these contracts and/or purchase orders, determine if any amendments to such are needed, or if such agreements need to be terminated and replaced with newly executed contracts and/or purchase orders.
  1. Create an internal procedure that includes a detail of all the steps needed to verify, on an ongoing basis, full compliance of each service provider with its obligations under the new outsourcing rules.

Our firm is closely following the amendment process.  We have reviewed in detail the requirements of the new regulations. We are consulting with many clients on these major legal changes and are available to review specific issues or questions your company may have.