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Mexico Publishes Decree Restricting Outsourcing of Employees

|Approved Changes|Mexico
Mexico

On 23 April 2021, Mexico published in the Official Gazette the Decree amending various provisions of the Federal Labor Law, Fiscal (Tax) Code, Income Tax Law, Value Added Tax Law, and other legislation to reform the country's labor outsourcing system. The Decree, submitted in Congress by the government in November 2020, effectively eliminates most outsourcing (subcontracting) of employees in Mexico in order to protect labor rights and abolish practices that allowed employers to avoid their o…

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