The Mexican Congress recently approved a legislation that limits labor subcontracting, with 110 votes in favor, one against, and one abstention.
The senators modified eight laws that regulated outsourcing. The reform will now pass to the government’s sanction.
President Andrés Manuel López Obrador initially proposed the abolition of outsourcing, saying that it is an ‘abuse.” This then garnered discontented comments from the country’s business sector, causing López Obrador to regulate outsourcing.
The Ministry of Labor and Social Welfare (STPS)’s data revealed that there are 6,000 outsourcing companies in Mexico in 2020.