A Farewell to outsourcing in Mexico.
The President of Mexico, Andrés Manuel López-Obrador, submitted a Bill on November 12th, 2020 before the House of Representatives of the Mexican Congress, in order to amend the Federal Labor Law, Social Security Law, Worker Housing Law (INFONAVIT), Federal Tax Code, Income Tax Law and the Value Added Tax Law. The main purpose of this initiative is to eliminate the abuse of subcontracting. The Bill argues that “outsourcing” or “insourcing” are detrimental to worker’s rights and facilitate tax evasion through simulation practices reporting lower wages.