Mexico Issues New Protocol for Subcontracting Inspections

Mexico’s Ministry of Labor and Social Welfare (STPS) has released a new Subcontracting Inspection Protocol aimed at standardizing federal labor inspections and strengthening oversight of subcontracting practices across the country. The measure seeks to provide greater clarity for employers and reinforce compliance with labor regulations.

Although subcontracting labor structures were prevalent in Mexico for many years, several outsourcing schemes were also used for the underpayment of taxes and social security contributions, leading to massive tax frauds and reductions of the employee’s lawful compensation (including retirement and housing). The Labor Reform prohibited the subcontracting of personnel. With this framework, the government aims to curb practices that evade labor responsibilities, strengthen dignified employment conditions and ensure that labor laws are applied nationwide.

Developed by the STPS’ Dignified Work Unit, the protocol establishes uniform criteria for federal labor inspectors involved in subcontracting reviews. According to the agency, the goal is to ensure consistent, professional intervention aligned with the national regulatory framework, while giving employers a clear understanding of what elements will be evaluated during an inspection.

The protocol is part of a broader effort by the government to update regulatory instruments in line with workplace conditions. Authorities have stated that these tools aim to improve the effectiveness of oversight mechanisms and support full compliance with labor obligations.

Key components of the protocol include descriptions of the types of oversight actions available to labor authorities and the incorporation of strategic information-sharing with entities such as the Tax Administration Service (SAT), the Mexican Social Security Institute (IMSS), and the National Workers’ Housing Fund Institute (INFONAVIT). This collaboration is intended to strengthen enforcement capabilities through coordinated data analysis.

The document also outlines a methodology for identifying potential noncompliance by cross-referencing information from multiple institutional sources. According to STPS, this approach enables more targeted, evidence-based inspections, and supports a more efficient process.

STPS says that the new protocol contributes to maintaining a modern and transparent inspection system rooted in legal certainty and social justice principles. The agency reiterated its commitment to safeguarding labor rights and encouraged employers to comply with current regulations and cooperate fully during inspection processes.

The recently-published document is one of several actions by federal authorities to enhance worker protections. Mexico’s federal government is also preparing to introduce an initiative to reduce the standard workweek from 48 to 40 hours. President Claudia Sheinbaum has previously stated that an agreement has been reached between the Labor Ministry and the business sector to implement the reform gradually. The measure aims to align Mexico with global labor standards and promote a more balanced work environment while minimizing economic disruption. 

The workweek reform, which is advancing toward the Senate, has raised concerns in many industrial sectors that rely on tightly coordinated schedules and continuous operations. Critics warn that the reform could reshape staffing models, increase labor costs, and pressure production lines built around rigid timing. “What we seek is greater productivity, and everything will converge once the laws are implemented, because today there are two very polarized positions,” says Norma Godínez, CHRO, Kelly México.