On May 24, 2021, the Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social) (STPS) published guidance under the recently amended Mexican Labor Law in the Official Gazette of the Federation clarifying the outsourcing registration requirements for individuals and entities that provide subcontracting services. The amendment generally prohibits employers from subcontracting or outsourcing personnel, but includes carve-outs and exceptions under limited circumstances. The following provides a basic overview of the STPS outsourcing registration guidance.

Who is required to register with the STPS?

• Individuals or legal entities that render specialized services or execute specialized works and for which purposes they provide or make available their own employees for the benefit of a third party.

• Legal entities that provide complementary or shared services or works in the same business group.

Where and when do individuals and legal entities register?

• Through the information technology (IT) platform of the STPS.

• Current outsourcing specialized services providers have until August 21, 2021, to register before the STPS. This is the date that is within the 90-day term established by the transitory provisions of the reform to the Federal Labor Law regarding subcontracting.

• The registration is valid for three years. Individuals and legal entities may renew their registrations three months prior to the expiration date.

How do individuals and legal entities register with the STPS?

• Upload/provide information in the STPS platform, such as (i) a valid electronic signature; (ii) the individual’s name or the legal entity’s name (i.e., corporate name); (iii) the federal tax registry ID (RFC number); (iv) domicile information; (v) a telephone number and email address; (vi) the articles of incorporation ID number corresponding to the legal entity, identification data of the notary public or the public authority who issued the incorporation documents and the corporate purpose; (vii) information regarding the predominant economic activity and specialized activity according to the Mexican Social Security (IMSS) catalog; (viii) the employer’s registration with the IMSS and registration with INFONACOT; and (ix) the total number of employees.

• Be up to date with tax and social security obligations.

• Establish with precision the service or work to be rendered, a description of which must also be included in the corporate purpose provided.

• Justify the specialized nature of the work by providing information, such as: (i) training, (ii) certifications, (iii) permits, (iv) licenses, (v) equipment, and (vi) experience.

What is the process for registering with the STPS?

• After the applicant uploads the information to the STPS platform and responds to any request for additional information, a folio number will be assigned.

• The STPS has 20 business days to make a statement; if it does not do so, the applicant must submit a request to the STPS.

• Once the applicant files the request, the STPS will have three business days to issue a decision; otherwise, the registration will be deemed as authorized and provided for all legal purposes.

• Once the STPS completes its analysis of the documentation, it will proceed with the registration in the “public registry of contractors of specialized services or works” and will notify the applicant of the registration through the platform.