Outsourcing in Mexico: Reform Updates

The 2021 reform to outsourcing in Mexico marked a significant shift in the way companies operate and manage personnel. Whether you're launching a new facility or already conducting business in Mexico, understanding the labor subcontracting reform is crucial to ensure compliance and protect your operations.

This reform redefined the legal landscape for subcontracting, targeting abuse of the outsourcing model and enforcing new standards to safeguard workers' rights. With Mindfacturing®, Prodensa's legal outsourcing services platform, we support companies in navigating this new era of strategic workforce management in Mexico.

What Changed with the Outsourcing Reform?

Approved on April 13, 2021, and expected to become law by May 1 of that year, the reform prohibits personnel subcontracting in core business activities. It introduces clear rules for using specialized outsourcing services and tightens compliance obligations for all parties involved.

Key Components of the Reform:

• Ban on labor subcontracting: Companies can no longer outsource roles directly related to their primary business purpose.

• Elimination of insourcing: Disallows internal group companies created solely to provide core services.

• Specialized services allowed: Only non-core activities can be legally outsourced through registered providers.

• Mandatory registration: Service providers must register with the STPS and maintain full compliance.

• Profit-sharing cap: PTU payments are now capped at 3 months' salary or the 3-year average of PTU payments, whichever is more favorable to the employee.

• Non-compliance penalties: Severe fines range from $22,000 to $4.4 million pesos.

• Fiscal consequences: Illegally outsourced services are non-deductible for tax purposes.

Implementation Timeline and Compliance Strategy

Once published, the law became enforceable the next day. Companies had 90 days to:

• Transition personnel to compliant structures

• Register specialized providers with the STPS (within 30 days of regulation issuance)

• Implement contracts and processes that ensure legal compliance

To achieve a smooth transition, businesses must work across HR, legal, tax, and compliance teams.

Why the Reform Matters for Your Business

This is not just a labor reform—it has implications across tax, social security, and international legal agreements. Companies must:

• Assess all labor-related contracts

• Review employee status and employment models

• Communicate openly with internal stakeholders

• Partner with reliable, compliant outsourcing entities

Mindfacturing® empowers businesses to meet these challenges and build future-ready workforce structures aligned with Mexican law.

Mindfacturing®: Strategic Legal Outsourcing in Mexico

Mindfacturing®, powered by Prodensa, offers specialized outsourcing services tailored to the new legal framework. We help clients:

• Identify which services can be legally outsourced

• Register as a qualified provider or evaluate third-party compliance

• Structure contracts with full transparency and compliance safeguards

• Create positive internal narratives to communicate change effectively

• Support fiscal and labor law audits

With decades of experience in HR compliance, shelter operations, and legal consulting, Prodensa provides end-to-end transition support to help businesses adapt quickly and compliantly.

Contact Us

Let our legal outsourcing experts help you adapt and grow.

Contact Prodensa to receive tailored guidance and ensure your business stays compliant, competitive, and confident in Mexico’s evolving labor landscape.