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Divide the five most common outsourcing reform myths

Without digital tools for the correct handling of deductions, incidents and contributions in their payroll, companies are exposed to sanctions. Grow Your Business, Not Your Inbox Stay informed and join our daily newsletter now! June 11, 2021 5 min read This article was translated from our Spanish edition using AI technologies. Errors may exist due…

Without electronic tools for the right handling of deductions, incidents and contributions in their payroll, companies are subjected to sanctions.

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This article was translated from our Spanish version using AI technologies. Errors may exist because of this procedure.

With 41 days to comply with the new regulation on Outsourcing, that comes into force on July 24, five myths prevail among Mexican businesses.

The new regulatory framework applies to companies of all sizes, however, SMEs are under more pressure because they don’t have great internal service or consulting companies to carry out this transition. Along with this rush to comply with the new regulations, it must be taken into account that there is some confusion about the functions that could endure to be contracted through outsourcing.

For SMEs, employers from 10 into 200 or 300 workers, internalizing the purposes that were traditionally managed in outsourcing is complex and represents a struggle. Automation and support are all key to successfully undergo this transformation also to prevent the associated fines.

To dispel the main myths which exist concerning the new regulation, Business Republic organized a webinar to offer actual facts and advice to the new law.

At the event, Carlos Marina COO of Worky, Lorena Atondo and Gabriel Fernández, both by Reynoso & Atondo, Abogados, SC, agreed that this circumstance is significant, because it affects over 4.7 million employees, 17percent of their formal work in the nation.

And it’s that urban myths and fake news abound that trigger uncertainty and concern among customers and prospects, Carlos Marina cautioned.

The myths:

  1. “I can continue with my current outsourcing scheme, since the authority does not have the resources to detect it.”
  2. “I can avoid the new regulations by passing my collaborators to schemes of incorporation into the tax regime, fees, cooperatives or unions.”
  3. “We can pay a minimal amount in cash and the rest of the compensation can be handled through bonuses, commissions and vouchers.”
  4. “I don’t worry about the compensation schemes of the past, as there are no retroactive effects.”
  5. “The internalization of the payroll is too expensive, I better risk possible fines”

Each of those statements are not just false but insecure. The experts clarified that the regulations are made to improve the conditions of the employees and that in that spirit, the authority has organized itself to prevent just any act of simulation.

At this juncture, alternative providers have emerged t

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