On July 31, 2021, a decree was published in the Federal Official Gazette amending the First, Third, Fourth, Fifth, Sixth and Seventh transitory articles of various provisions of the Federal Labor Law, the Social Security Law, the Law of the National Workers’ Housing Fund Institute, the Federal Tax Code, the Income Tax Law, the Value Added Tax Law and the Federal Law of Workers in the Service of the State, among others, which approved to extend the transitory terms until September 1, 2021 in order to simplify compliance with the new obligations regarding subcontracting. Said terms are shown in the table below:

Item	Previous deadline	Current deadline
Registry of Specialized Services or Works Providers. (REPSE by its Spanish acronym)	August 23rd, 2021	September 1st, 2021
Fiscal matters	August 1st, 2021	September 1st, 2021
Employer substitution and termination of subcontracting schemes	July 22nd, 2021	September 1st, 2021

On April 23, 2021, the decree on labor subcontracting was published, amending the Federal Labor Law, the Social Security Law, the Infonavit Law, the Federal Tax Code and the Income Tax and VAT laws.

The prohibition of subcontracting personnel was incorporated and it was established that only specialized services or the execution of specialized works that are not part of the corporate purpose or the main economic activity of the beneficiary may be subcontracted, provided that the companies providing these services comply with certain requirements such as registration with the REPSE.

Initially, the National Action Party (PAN) proposed an extension until January 2022, but Morena’s proposal prevailed, granting only until September 1, claiming in their ruling that a longer period “would extend violations to labor rights.”

Another reason for the extension of the deadline, as mentioned in AGREEMENT ACDO.AS2.HCT.230721/188.P.DIR, is that according to the Mexican Social Security Institute (IMSS), more than 2.3 million people who worked under this scheme are already part of the companies to which they provided their services, being far from the figure of 4 million outsourced employees according to data published by INEGI.

In the case of the Public Registry of Contractors of Specialized Services or Works (REPSE), to date there are 70,000 companies that have submitted the registry, but only 25,500 have completed it.

During July, 9,000 companies started their registration in the REPSE, of which 3,000 completed it, and only 600 have obtained the permit.

Some companies have resorted to file amparo suits to gain time, since private companies were given until September 1, but public companies have until January 1, 2022.

In order for companies to successfully register with REPSE, they must be up to date with their tax and social security obligations. Additionally, they must provide documents such as a valid electronic signature, address, name or company name, RFC, Articles of Incorporation of the Company or Tax Status Report (for individuals), economic activity and employer registration with the Mexican Social Security Institute (IMSS).

For more information about REPSE Registration, we invite you to refer to our previous newsletter, which contains more information on the matter:

https://lrgarcia.com.mx/en/the-secretary-of-labor-and-social-welfare-offers-you-the-repse-platform-for-the-registration-of-service-and-specialized-works-providers/

Likewise, you can now consult the companies that are registered in the REPSE to make sure that the company that provides you with any service or specialized work is duly registered.

We remain at your service for any questions or clarification in this regard.