When expanding your business to another country, there are a plethora of different factors you have to consider, starting with why you are moving there in the first place. Do you want to capture the local market, harness local talent or some natural resource, take advantage of the local infrastructure or geographic location, or you might simply be looking for affordable labor? These questions and the underlying factors can have significant sway over your expansion decision.

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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.”

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