The End of Outsourcing in Mexico? Characteristics of the New Legislation and Future Prospects:

Abstract

Objective: to analyze labor outsourcing in the 2021 Labor Federal Law reform in Mexico versus the one carried out in 2012, and to reflect on its probable effects on labor dynamics. Methodology: the comparison between the last two reforms to the Law to determine what is modified and what remains in relation to labor subcontracting. The political debates and the quantitative dynamics in recent years are reviewed. Results: in some aspects there are significant changes; in others, the previous regulations remain. The most important turn of the reform concerns the mechanisms to guarantee compliance with the norm. Limitations: the short time that has elapsed since the promulgation of the new reform constitutes the main limitation for the analysis of its consequences. Value: the analysis and the conclusions constitute a novel contribution to the academic discussion on the impacts of political turns on social phenomena. Conclusions: the reform on outsourcing presents ruptures with the previous regulation, but it also has continuity features. The preliminary impacts are uncertain. There are signs to think that labor outsourcing will decrease but not the precarious employment.