Specialized services outsourcing and Staffing in
Gracemark is registered as a specialized service supplier in Mexico. We continue offering staffing solutions, business process outsourcing, and payroll solutions in full compliance with the new laws.
Additionally, Gracemark now provides support services to help companies comply with the new law by transitioning to a fully compliant supplier base that can cover all functional areas. Our managed services aim to become your one-stop shop for your outsourcing and staffing needs and to make sure you continue operating efficiently in this transition.
On May 24, the Mexican Ministry of Labor and Social Welfare issued general provisions on outsourcing.
The agreement issued by the ministry contains the general provisions for the registration of legal entities that provide specialized services and that for this purpose, provide or make available their own workers for the benefit of another to perform the services.
Before the new law :
Some informal payroll companies called ” Pagadoras ” used fiscal loopholes to reduce the payment of taxes and benefits to employees which was a practice that grew nationwide affecting the government and employees paid through this type of companies.
After the new law :
The government of Mexico recently passed a Law requesting outsourcing companies to register as “specialized services providers”. The registration process requires companies to prove that they have paid all their taxes since the beginning of their operations including a letter of good standing from the Mexican revenue agency, the social security, and the state-run worker’s compensation agency.
Companies in Mexico that want to outsource some functional areas must do it through agencies registered as specialized service providers, furthermore, the new law limits the outsourcing of employees to support functions that are not directly related to the main objective of the service or product of the client.
Companies will not be able to use outsourcing or staffing companies to manufacture or render their main services to the client but will be able to use staffing and specialized services for support services.
WHO IS AFFECTED
BY THIS LAW
The companies that have legal entities in Mexico that use payroll outsourcing should find new suppliers that have the registration or bring their previously subcontracted employees as full-time employees (insourcing).
The outsourcing companies that didn’t fulfill their tax obligations will not be able to register and will be unable to operate. It is important that if you have outsourced employees through a third party that is not able to register that you take action to bring the employees as your own employees or contact us so we can help you with the transition to a fully compliant structure.
WHO IS NOT AFFECTED
BY THIS LAW
Foreign companies that do not have a local entity can use local outsourcing, staffing, or global payroll services without limitations.
Furthermore, the Law only applies to companies that make available their own workers for the benefit of another to perform the specialized services or works. The changes don’t apply If the client hires another company to produce deliverables or services without supervising the employees, and only paying for the deliverables which should be clearly reflected in the agreement.
Gracemark is a registered specialized services supplier!
Contact us for your outsourcing, staffing, and payroll needs in Mexico.
SOME OF OUR SOFT LANDING AND EXPANSION SOLUTIONS FOR LATAM
- Staffing in Latin America
- Payroll Latam / Employer of record
- Market intelligence studies
- Business Development Outsourcing
- Business Process Nearshoring
- Executive Search & Recruitment