Back

Economy & Business - December 2020

MEXICO: Business leaders may limit outsourcing reform

Mexico’s President Andrés Manuel Lopez Obrador on 12 November sent a bill to congress that virtually bans all forms of outsourcing, which was regulated in the 2012 labour reform with the aim of introducing much needed flexibility into the domestic labour market. The motivation behind the bill is that the practice, which allows firms to reduce their costs by up to 50% by subcontracting workers that are not in a company’s payroll, is considered “abusive” by the government.  According to the tax prosecution office at the finance ministry there are more than 6,000 firms that engage in illegal subcontracting to evade some M$21bn every year.

End of preview - This article contains approximately 871 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

LatinNews
Intelligence Research Ltd.
167-169 Great Portland Street,
5th floor,
London, W1W 5PF - UK
Phone : +44 (0) 203 695 2790
Contact
You may contact us via our online contact form
Copyright © 2022 Intelligence Research Ltd. All rights reserved.