TAX and LABOR. Amendments to the General Regulations regarding Labor Inspections and Application of Sanctions (Labor Subcontracting) September 6, 2022

On August 23rd, 2022, the Decree that amends several provisions of the General Regulations regarding Labor Inspections and Application of Sanctions was published in the Official Gazette of the Federation, through which diverse criterion, programs, systems and procedures of inspection (i.e. promotion and the surveillance of complying with the labor provisions and/or assistance and advisory to employees and employers in its compliance) were amended, as well as the application of sanctions regarding labor matters. The Decree entered into force the following day of its publication.


Among the additions to the General Regulations regarding Labor Inspections and Application of Sanctions are the implementation of the Inspection Alternative Mechanisms, including: (i) the voluntary compliance programs; (ii) the alternative procedures for the compliance of labor provisions; and, (iii) the collaboration actions that the Ministry of Labor and Social Welfare determines through the conclusion of agreements with the Federal Entities in which the employers inform and/or demonstrate the fulfillment of the labor provisions. 

The voluntary compliance programs exempt the employers to receive visits from the labor authorities (i.e. ordinary inspection visits); nevertheless, advisory, and technical assistance visits may be performed.

Regarding the labor subcontracting, will be subject to personal notification, or by official letter delivered by courier or certified mail with acknowledgment of receipt, or through electronic means, (i) the performance of inspections and application of sanctions resulting from the violation to the labor provisions; (ii) the rulings issued regarding the determination of the registry upon the Register of Contractors of Specialized Services or Specialized Works, and (iii) those regarding the denial or cancelation of the referred registry.

Concerning the surveillance of the labor subcontracting provisions it was included that the Labor Inspectors designated specifically by the Head of Labor Inspections, will carry out the ordinary and extraordinary inspections due to the expertise that they required.

Finally, the Labor Inspectors will implement and notify the administrative requirements in the inspection visits, when an employer does not allow the labor authorities to carry out the inspection and surveillance in his establishment, which may result in the imposition of penalties that will range between MXN $24,055.00 to MXN $481,100.00 MXN in accordance to article 1004-A of the Federal Labor Law.


Since the entry into force of the labor subcontracting provisions, the labor and tax authorities are intensifying their faculties to monitor the due fulfillment of such provisions. In that sense, in addition to reviewing and analyzing the contracting schemes for the provision of services implemented with several contractors for establish preventive and/or corrective measures in order to continue operating said schemes, it is indispensable to be accompanied during the inspections and/or audits performed by the referred authorities due to the contingencies that may result, especially in tax matters, which are the most sensitive.

If you have any questions regarding the foregoing, please do not hesitate to contact us.

Mexico City, September 6, 2022

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