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Mexico’s Congress approves legislation limiting outsourcing

April 21, 2021

Mexico’s Congress approved legislation limiting labor outsourcing — as staffing is known in Latin America — with outsourced workers allowed only for use outside of a company’s main business activity among other things, Infobae reported.

Mexico’s Senate voted on Tuesday with 110 votes in favor of the regulation with one against and one abstention.

Napoleón Gómez Urrutia, president of Mexico’s Labor and Social Welfare Commission, said the regulation was the most important labor reform of the current government, according to an official report.

“The important advantages that this labor hiring regime generates for the development of the Mexican economy are not unknown, but neither is the existence of excessive, abusive or simulated practices in various aspects such as seniority, job stability, the distribution of profits, social security and the right to housing” Sen. Ricardo Monreal Ávila said (translated from Spanish).

Mexican President Andrés Manuel López Obrador had begun calling for a total ban on outsourcing last year.