Which topics does the Agreement deal with?
Which modalities does the Agreement stand out regarding the calculation of the employees profit sharing?
Starting January 1, 2021, we have been closely following the meetings that the private sector has had with legislators, unions and authorities in relation to the initiative on outsourcing and its proposed amendments.
As a result of these meetings, on April 5, the Ministry of Labor and Social Welfare issued Bulletin 041/2021, through which an agreement is reached on subcontracting between the labor and business sectors and the Mexican Government (The Agreement).
The Agreement deals with the following topics and we are highlighting the issues that will have an impact on Mexican companies:
The agreement to regulate the calculation of the employees profit sharing (PTU) stands out, with two modalities: (i) either a maximum limit of 3 months of the worker's salary or (ii) the average of the PTU collected by the worker in the last 3 years, whichever is higher.
It is important to bear in mind that the calculation of the PTU base remains the same; however, it is now individualized in such a way that where the individualized amount of PTU that an employee receives is 5 months, but when comparing the individualized PTU that such an employee received in the last 3 years is 4 months, then his maximum amount will be 5 months.
On the other hand, the prohibition of the subcontracting of personnel prevails, so structures such as the so-called insourcing or internal personnel service providers will be prohibited, as well as the hiring of personnel that perform activities that are related to the corporate purpose or preponderant economic activity of the contracting company.
The Agreement refers to the regulation of specialized services, which apparently will contain provisions related to the possibility that shared services have a place in this definition, which is relevant in those groups of companies that provide services in Mexico to various companies of the same group, to the extent they obtain the proper authorization from the Ministry of Labor and its registration.
A grace period of 3 months is established for the entry into force of the provisions contained in the initiative; this period seems not enough for purposes of the restructuring process many companies will be required to execute.
At KPMG we will be attentive to analyze together with you the provisions that Congress discusses and, where appropriate, approves regarding this topic, recommending that you perform a particular detailed analysis of the impacts that this initiative will have in your companies, in order to be ready considering that the transition period would not suffice.