Outsourcing reform. Guidelines for the registration of individuals or entities that provide specialized services or execute specialized works

Following the Reform regulating subcontracting, published on April 23, today the Ministry of Labor and Social Welfare (Ministry) published in the Federal Official Gazette the directive containing provisions for registering individuals or entities that provide specialized services or execute specialized works and that, for that purpose, provide or make available their own workers in benefit of another, guidelines which will enter into force tomorrow.

The directive establishes the following main points:

• Registration will be mandatory for individuals or entities that provide specialized services or execute specialized works, as well as the companies that provide complementary or shared services or works in the same business group.

• The interested parties will register through an IT platform that you may consult at this link, providing the following information:

1. Valid electronic signature.

2. Company name in the case of an entity; or complete name of an individual.

3. Trade name.

4. State.

5. Federal Taxpayer Registry number.

6. Domicile.

7. Geolocation.

8. Landline and cell phone numbers and email address.

9. Number of deed of the company´s incorporation, information of notary public or commercial notary that issued the instrument, date of its notarization and corporate purpose.

10. Employer Registration before the Mexican Social Security Institute [Instituto Mexicano de Seguro Social].

11. Identification information of the legal representative of the specialized services or works company.

12. Affiliation before the National Workers Housing Fund Institute [Instituto del Fondo Nacional para el Consumo de los Trabajadores].

13. Total number of workers at the time of the request for registration.

14. Specialized economic activity according to the “Catalog of activities for the classification of companies in occupational risks insurance” of the Mexican Social Security Institute.

15. Activity or activities to be registered in the registry.

16. Preponderant economic activity.

• It determines that, at the time of their registration, the interested parties must be up to date in their fiscal and social security obligations.

• The service to be provided or works to be executed must be established precisely, evidencing their specialized nature through information and documentation that supports their exceptional nature.

• The specialized services or works to be registered must be contemplated within their corporate purpose.

• The request for registration through the IT platform must contain the following documents:

1. Official identification of the individual or the legal representative of the company.

2. Notarial Power of Attorney.

3. Payroll receipt.

4. Deed of Incorporation and current corporate purpose.

5. Record of registration in the Federal Taxpayers Registry.

6. Employer Registration before the Mexican Social Security Institute.

7. Proof of Domicile.

• After the documents are uploaded, the platform will assign a folio number with which the registration can be monitored.

• The Ministry will have a period of 20 business days from the registry request to analyze the information provided and, if appropriate, issue the registration notice, which will contain the registration number; folio number for each specialized service or work registered; the name of the specialized service or works; and the name of the individual or entity holding the registration. If the Ministry does not respond in that period, the petitioner may request the Ministry to issue the corresponding notice and if it does not do so within 3 business days, the registration will be considered made.

• The Ministry may request additional information from the petitioner and from any governmental entity to corroborate the information provided.

• The Ministry may deny or cancel a registration, in case of cancelation it must notify the interested party which will have 5 business days to submit a response.

• The registration will have a term of three years and the process for its renewal must begin three months before the end of its term and will be essential for the contractor to be able to provide its services.

• The individuals or entities that obtain the registration must fully identify their workers through the identity image, name, badge or code that links those workers to the company that provides the specialized service or works in the facilities of the contracting company.

• The contracts corresponding to the specialized services or works must establish the registration and folio of the activity or specialized works in effect. For additional information you may consult the publication in the DOF at this link.

Please be assured that we are available for any doubts you may have in this respect and to help you with the registration and implementation of changes related to the subcontracting reform.

To obtain additional information contact our experts:

Rodolfo Trampe, Partner: +52 (55) 5258 1054 | rtrampe@vwys.com.mx

Alix Trimmer, Associate: +52 (55) 5258 1016 | atrimmer@vwys.com.mx

Alejandro Pérez, Associate: +52 (55) 5258 1054 | alperez@vwys.com.mx

Ricardo Rosas, Associate: +52 (55) 5258 1054 | rrosasg@vwys.com.mx