In April of 2021, Mexico’s Federal Government amended several provisions of the Federal Labor Law. The goal of these amendments was to essentially prohibit employer subcontracting or “outsourcing,” which the law defines as “when a natural or legal person provides or makes available their own workers for the benefit of another.”

Amendment Exceptions and Limitations

There are several important exceptions and limitations to the law’s general prohibition on subcontracting or “outsourcing.” Most importantly, the subcontracting of “specialized services” or the “execution of specialized works” that are not part of the corporate purpose or the predominant economic activity of the beneficiary employer is allowed.

Companies are hoping these exceptions make the new law feel a little less restrictive when it comes to day-to-day operations. Those of you who are subscribers to Global People Strategist’s Mexico profile, please expect to see updates come through in several sections of the Country Profile.

For a more detailed summary of the situation, we have provided a link to a National Law Review Article that summarizes the major changes here.

For access to the actual law itself, please click here.