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Mexican Social Security Institute Modifies Outsourcing Regulations

July 30, 2009

The Mexican Social Security Institute (IMSS) has recently announced that it has modified its regulations and laws to tighten control over the practice of outsourcing. 
The IMSS published in the official Mexican Gazette new regulations that have increased the obligations both of companies providing outsourcing services, and those receiving the benefits of such services.  The new regulations make the companies receiving the services directly liable for all IMSS benefits quotas not paid by the outsourcing companies. In addition, both service providers and the receivers of such services must now provide the IMSS with quarterly notices of their outsourcing relationships and agreements.  Companies using these outsourcing services will have to improve their control over their outsourcing providers to avoid unnecessary disruptions in their work process. 

These new regulations will affect all companies who receive outsourced employment services, such as shelter maquilas.  Depending on how the regulations are interpreted, they may also be applicable to companies that hold employees used for manufacturing operations of affiliated companies.

If you have questions or need assistance with your operations in Mexico, please contact:

Richard A. Walawender