Mexico: Outsourcing is banned and companies must comply with new regulations fast to avoid hefty fines
In April 2021, a modification to the Federal Labor Law became in force which forbade most outsourcing contracts between Employers and Employees in Mexico. Only in special cases the government allow outsourcing of Employees. Many companies, both local and multinational, adopted outsourcing schemes in recent years, mainly to reduce labor costs. The three-month implementation period ends in July 2021, with hefty fines to those companies that do not transfer employees in time and cease using…
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