In order to comply with the outsourcing reform in Mexico, companies must carry out a thorough validation through REPSE. Here are the keys to success.
The outsourcing reform in Mexico seeks to eliminate tax evasion and ensure that companies comply with their employer obligations. As of its implementation, they will only be able to hire specialized labor. While the companies providing the services must be registered, contractors and service providers are jointly and severally liable.
In this article, we tell you how to adapt to the norm and be able to carry out the exhaustive control in a simple and effective way. Read to the end and access valuable information to achieve it.
Outsourcing reform and the creation of REPSE
In September of this year, the reform of the law that regulates outsourcing and subcontracting came into force. Although eight laws were modified, most of the changes were focused on labor law.
Outsourcing is a labor scheme under which a company outsources the contracting of services to another firm.
17% of the people employed in Mexico
in Mexico work under outsourcing.
Source: Censos Económicos del Instituto Nacional de Estadística y Geografía (Inegi) 2019
It is important to highlight that this reform aims to eliminate bad practices associated with this scheme. Such as example, tax evasion and non-compliance of companies’ obligations to their workers.
In this context, large companies must completely change their structure, since up to now they “did not have employees” but rather these were within small firms.
Therefore, the axis of this reform is to prohibit the outsourcing of personnel, both in outsourcing and insourcing schemes. In other words, it will not be possible to hire a third party or create an internal company that will be in charge of the payment and management of personnel. Except for specialized services.
This is where the Registro de Prestadoras de Servicios Especializados u Obras especializadas (REPSE) arises, where contractors must be listed.
How do the outsourcing reform and the REPSE impact companies?
The new law contemplates several changes in tax matters. However, there are 4 central aspects that will modify the dynamics of companies with respect to this type of contracting.
What are the challenges posed by REPSE?
To avoid fines of up to MX$4.434 million, both providers and contractors of specialized services must maintain exhaustive control.
Therefore, the key to adapting to the norm will be in technology. With the right software, such as Coldview REPSE, you will prevent errors and omissions by organizing and controlling the information.
Here are some of the challenges presented by the reform and what solutions you can implement.
For this reason, having a technological solution that systematizes the exhaustive validation will help us to know if we are collaborating with the right suppliers. Giving us security and stability in the commercial relationship between both parties, while complying with regulations and avoiding fines.
In conclusion,
This new legal framework challenges companies to adapt the way they hire their human resources and avoid penalties. Therefore, it is clear that the companies that face the change through digital transformation will be the best positioned.
Would you like to know how Coldview can help your organization in this process? Write us and we will tell you.