Mexico: New Regulations Clarify the Requirements for Outsourcing

Mexico’s Federal Conciliation and Arbitration Board recently published regulations to set a uniform standard for all labor boards to follow when determining whether outsourcing has occurred. These regulations, entitled “Employment Relationship within the Outsourcing Framework” (“Relación de Trabajo en el Régimen de Subcontratación”), interpret the new outsourcing requirements established in the labor law reform of 2012 and serve as guidance to determine who – whether the contractor that hired the worker to perform services or the contractor’s customer (the business that benefits from the services) – is liable for any employment obligations owed to that worker.