Mexico: government submits reform that would ban employee outsourcing to parliament

A definitive stance has been taken by the Mexican government on the controversial topic of job outsourcing or subcontracting (subcontratación), which has been agitating the country’s labour sphere for many years (see article n°11662). On Thursday 12 November, president Andrés Manuel López Obrador and Mexican employment minister Luisa Alcalde presented a proposed reform that would ban the practice, which has been criticised for facilitating tax evasion and the underpayment of social security contributions, as well as weakening social rights. The text, which would ban subcontracting employees except in the case of specific services, was immediately passed on to the Mexican Chamber of Deputies, the lower house of Congress.