New outsourcing Agreement

Dear Clients,

After several months of negotiations, the past April 5, 2021, an Agreement was signed between the Workers' and Private Sectors and The Government of Mexico to modify the Outsourcing Reform Initiative submitted on November 12, 2020.

The Labor and Social Security Ministry issued Bulletin No. 041/2021, which outlines the following points of the agreement:

It is important to mention that this agreement does not bind companies and has no Law force since the Reform has not been approved yet. However, the Chamber of Deputies should consider it as soon as the discussion on the Outsourcing Reform Initiative's approval starts.

In the light of the announcements and releases around and the unofficial information we have received, we consider that the Reform may be approved during this month of April. Therefore, we invite you to review your recruitment schemes from now on to eliminate outsourcing and insourcing and hire directly on your company's payroll your employees, who carry out your company's main

If companies do not comply with the new provisions of the imminent outsourcing reform, they will
be exposed to excessively high fines.

At MGCS we are at your service for more information regarding the established in this document.

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Massat & Garcia Consulting Servicios, S.C.

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