On May 24, 2021, the “Agreement which sets forth the general provisions for the registration of natural or legal persons that provide specialized services or execute specialized works referred to in article 15 of the Federal Labor Law” was published in the Official Gazette of the Federation, which will enter into force the day after its publication, in accordance with the Decree published on April 23, 2021 which modified various labor and tax provisions regarding the outsourcing.

Below we point out the provisions that we consider most relevant; however, if any of these provisions result applicable, we recommend a detailed review of the Agreement in order to identify any particularities:

1) Definitions. The following relevant definitions are established:

• Beneficiary: that natural or legal person who receives the specialized services or the execution of specialized works from the contractor, provided that they are not part of its corporate purpose or its predominant economic activity;
• Contractor: the natural or legal person who has the registration referred to in article 15 of the Federal Labor Law (LFT) issued by the Ministry of Labor and Social Welfare (STPS, per its acronym in Spanish) and provides specialized services or executes specialized works with workers under his dependence in favor of one or more beneficiaries;
• Specialized services or works: are those that comprise distinctive elements or factors of the activity carried out by the contractor, which are supported, among others, by training, certifications, permits or licenses that regulate the activity, equipment, technology, assets, machinery, risk level, average salary range and experience, which add value to the beneficiary.

2) It is provided that for administrative purposes the interpretation of the aforementioned Agreement corresponds to the STPS.

3) It is established that, a computer platform of the STPS will be available for purposes of requesting the corresponding registration. This platform is already available at the link http://repse.stps.gob.mx/, in which it may already be consulted, among others, the frequently asked questions section.

4) Among the information that should to be provided is the following:

a. Electronic signature
b. General data: name, denomination or company name, commercial name, Mexican tax identification number, geolocation, register number of articles of incorporation and data of the legal representative, in case of being a legal entity and its supporting documentation
c. Geolocation
d. Employer registration with the Mexican Institute of Social Welfare (IMSS, per its acronym in Spanish) and affiliation number before the Institute for the National Fund for Employee Consumption (FONACOT, per its acronym in Spanish)
e. Number of workers
f. Economic activity according to the catalog of activities for the classification of companies in the IMSS’ occupational risk insurance
g. Activities wished to be registered before the register, which must be established with precision, likewise for each activity to be registered, the specialized nature of the same and the description of the elements or factors that provide support must be evidenced, under protest of telling the truth, their exceptional nature by providing information and documentation in accordance with the platform’s requirements regarding training, certifications, permits or licenses that regulate the activity, equipment, machinery, among others. Said services or specialized works that are to be registered must be contemplated within their corporate purpose.

5) It is established that once the information and documentation are entered, a folio number will be assigned to follow up the registry request. Through the platform the STPS must rule on said request within 20 business days after receiving the request. In the event that the ruling is not issued, the applicants may request the Ministry to issue the corresponding registration notice within the three days following the submission of the request. Once said period has elapsed without issuance of the notice of the registration, it will be considered as duly carried out for the applicable legal purposes.

6) It is established that the STPS may deny the registration, among others, when:

a. The specialized character is not evidenced
b. The solicitor is not up to date with tax and social security obligations before the Mexican tax authorities, the IMSS or the Institute of the National Housing Fund for Workers (INFONAVIT, per its acronym in Spanish)
c. Failure to comply with the requirements indicated in the aforementioned Agreement
d. Refusing to meet the information or additional documentation requirements required by the STPS

7) Similarly, it is established that the STPS may cancel the registration at any time, among others, when any of the following cases occurs:

a. Unregistered specialized services or works are provided
b. Specialized services or works are provided that are part of the main corporate purpose or economic activity of the beneficiary
c. There are outstanding debts derived from tax and social security obligations not duly met before the SAT, the IMSS or the INFONAVIT
d. Refuse to meet any request for information or documentation that is required by the STPS

It is provided that once the Ministry notices a possible non-compliance issue, it shall notify the service provider so that within a period of five working days he can express what is appropriate to his right and, where appropriate, resolve the pertinent issue.

8) The registration will be valid for three years and will be essential for the contractor to provide the services. The service provider registered before the registry must process every three years the renewal of its registration through the platform, the process of which must begin within the period of three months prior to the date on which the validity of the registration ends.

9) It is provided that the natural and legal persons who obtain the registration will be obliged to identify their workers by means of the image, name, badge, identity code that links said workers with the company that provides the service or executes the specialized work during the development of their work in the facilities that hire the services.

10) It is established that the contracts entered into by the contractors and beneficiaries must include the registration and folio of the activity and specialized work.

For your convenience, below is the link where said publication can be consulted:

http://dof.gob.mx/nota_detalle.php?codigo=5619148&fecha=24/05/2021

We remain at your service for any clarification or comment that is required regarding this publication.

* * * *

May 2021
Mexico City