New Mexico Outsourcing Agreement
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FAQ
In accordance with the recent amendment to Mexico's Federal Labor Law in regard to outsourcing, entities or individuals who obtain a Specialized Service Provider or Specialized Work Registration (REPSE for its acronym in Spanish) must refrain from performing any work related to the principal business activity of the
Mexico pays higher wages than China, but outsourcing to Mexico reduces other costs such as travel, having to work odd or extra hours to communicate with faraway employees in China, and stationing personnel at Chinese locations.
In accordance with the recent amendment to Mexico's Federal Labor Law in regard to outsourcing, entities or individuals who obtain a Specialized Service Provider or Specialized Work Registration (REPSE for its acronym in Spanish) must refrain from performing any work related to the principal business activity of the
Mexico, in particular, stands out among the other countries in the region because of its rapidly growing infrastructure, the amount and quality of tech talent, and affordable rates. The Mexican government and private developers are making a great effort to develop the IT industry in the country further.
The Mexican government enacted labor and tax laws in April 2021 that prohibit the outsourcing of workers. Several experts said Mexico's amended outsourcing rules will have a significant impact on companies that hire subcontractors.
Employers in Mexico can only hire outsourced workers for specialized services when the activities they perform are not part of the company's corporate purpose and its principal economic activities, Rangel said.
Work Day and Week. Employees are entitled to one full day of rest (Sunday) while the other days of the week (Monday through Saturday) are considered working days. Employees are required to work no more than 48 hours per week, although some companies may set the limit to 40 or 45 hours per week.
