Mexico: Mexican Government Issues Guidance For License Renewal Process For Providers Of Outsourced Specialized Services

On February 21, 2024, Mexico's Ministry of Labor and Social Welfare published in the Official Gazette of the Federation guidance for the process for renewing a registration as a provider of specialized outsourced services in the Registry of Specialized Services Providers or Specialized Works ("REPSE," for its acronym in Spanish).

Quick Hits

• Mexico's Ministry of Labor and Social Welfare published guidance for renewing a license as a provider of specialized services in the Registry of Specialized Services Providers or Specialized Works.
• The REPSE license must be renewed every three years, and the renewal process must be completed within three months before the license expires.
• The Federal Labor Law generally prohibits companies from outsourcing work, but provides exceptions for providers of specialized services.

Actualization Requirements and Process

The government amended the Federal Labor Law (FLL) in 2021 to generally abolish outsourcing, but included certain carve-outs and exceptions for contractors and individuals who provide specialized services. In February 2023, the government published an amendment to the REPSE guidelines.

Under the FLL, outsourced work must:

• be specialized (not part of the core business of the client);
• be provided at the client's premises under the supervision and/or control of the client;
• be memorialized via an agreement; and
• have an authorization by the government.

Contractors and individuals who wish to renew their licenses must use the REPSE online portal. Registrants must be up to date with their tax and social obligations with the Mexican Social Security Institute (IMSS), Mexican Revenue Service (SAT), and the National Institute of Workers' Housing Fund (INFONAVIT). Registrants must also define precisely the specialized services that they will perform.

REPSE licenses must be renewed every three years, and the renewal process must take place within three months before a license expires. The renewal process can only be started on the dates established in advance. After the license period has expired, the platform will automatically disable the renewal module. Failure to follow the renewal requirements will result in the immediate cancelation of the registration.

According to the ministry's most recent guidance, depending on the year and month of registration, REPSE registrants must complete the renewal process during the periods as shown in the table below.

Source: Ministry of Labor and Social Welfare (STPS)

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