Mexico Deputy Ricardo Monreal proposes reforms to curb outsourcing abuses

Ricardo Monreal Ávila, president of the Political Coordination Board (Jucopo) and Morena coordinator in the Chamber of Deputies, has announced an initiative to reform the Federal Labor Law and the Social Security Law. The proposal aims to prevent companies and government entities from using specialized service subcontracts as a loophole to bypass current prohibitions on personnel outsourcing.

The initiative seeks to define specialized services strictly as activities requiring technical knowledge, equipment, or infrastructure that the beneficiary does not possess. Under the proposal, beneficiaries would be prohibited from exercising command or organizational functions over the contractor's personnel. Additionally, contracts must include a technical annex justifying the need for subcontracting through verifiable documentation, subject to inspection by the Ministry of Labor.