The labor and social welfare authority dated April 5th, 2021, issued a bulletin 041-2021 regarding the agreements that they had with the executive power, the main representatives of the labor and business sectors, officials of the Government of Mexico, as well as representatives of the Legislative Power on the initiative on subcontracting.

The agreements will include:

• Prohibition of the personnel subcontracting

• The regulation of the outsourcing of specialized services other than the corporate purpose and the contracting company's principal economic activity.

• Registration with the STPS and registration in the public registry of companies that outsource specialized services and works.

• Joint and several liabilities in the event of non-compliance.

• Granting of a period of three months for subcontracted workers to become part of the actual employer's payroll.

• An agreement was reached on profit sharing to avoid possible distortions in capital-intensive companies, creating two modalities for calculating the distribution. In this formula, discretion is eliminated, and an increase of 156% in the amount of profit-sharing to workers would be achieved.

These agreements will be delivered to the Honorable Chamber of Deputies so they can be considered by legislators for approval.

We remain at your service for any questions or clarification in this regard.