Employment and Labor Law

Specialized Services Registry Rules

BACKROUND

On May 24, 2021, the general provisions or rules applicable to the “REGISTRY OF INDIVIDUALS OR COMPANIES THAT PROVIDE SPECIALIZED SERVICES OR PERFORM SPECIALIZED WORKS”, in connection with the “Outsourcing Reform” in effect, were published in the Federal Official Gazette, which came into force on May 25, 2021.

Accordingly, individuals and companies that provide specialized services or perform specialized works, in addition to specialized services or the performing of specialized complementary and shared works, between members within the same company group, are required to obtain the appropriate register from the Ministry of Labor (Secretaría del Trabajo y Previsión Social or the STPS for its acronym in Spanish)

Such individuals and legal entities will have 90 calendar days, from May 25, 2021, in order to carry out the established specific procedure to obtain the above-mentioned registration with the labor authorities.

Below, you will find our comments regarding some relevant aspects of the applicable rules, as follows:

DEFINITIONS

The beneficiary is the individual or company that receives the specialized services or the performing of specialized works from the contractor, provided that such services are not part of its corporate purpose or its predominant economic activity.

The contractor is the individual or company that has obtained its registry issued by the Ministry of Labor, which provides specialized services or performs specialized works with its employees dependent to the entity, for one or more beneficiaries of those services.

For such purpose, the contractor may provide or put at disposal its own employees for the benefit of the other contracting party, as recipient of the specialized services.

Specialized services or works are those services that bring together elements or distinctive factors of the activity carried out by the contractor, which are supported, among others: in the training; certifications; permits or licenses that regulate the activity; equipment; technology, assets; machinery; risk level; average salary range and experience, which provide and contribute value added to the beneficiary.

Thus, it is important to find and demonstrate the value added of the specialized services that are to be registered and provided by the contractor for the beneficiary.

INFORMATION & DOCUMENTATION REQUIRED TO OBTAIN THE REGISTRY

Individuals or companies that provide specialized services or perform specialized works who wish to obtain their registry, must access the Platform established by the labor authorities, in which they will request said registry and must comply with the specific information and documentation (such as their deeds of incorporation; corporate purpose; predominant economic activities, among others).

Also, such individual or legal entities must meet certain specific requirements, such as being up-to-date with their tax and social security obligations in addition to demonstrating the specialized nature of the services to be provided.

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