Mexico's STPS Publishes New Inspection Protocol on Subcontracting

Mexico's Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social or STPS) on Nov. 24, 2025, introduced a new inspection protocol on subcontracting, which redefines how authorities will verify compliance with labor obligations in specialized services provided at company facilities (criteria already in effect).

This change marks the beginning of more technical, uniform and evidence-based inspections, going beyond simple document reviews or their integration as part of a general working conditions process.

Main Points of the Protocol

Key points of the new protocol include the following:

• standardization of criteria for all inspections nationwide, providing legal certainty regarding the elements to be reviewed
• information exchange between STPS, the Tax Administration Service (Servicio de Administración Tributaria or SAT), the Mexican Social Security Institute (Instituto Mexicano de Seguro Social or IMSS) and the National Workers' Housing Fund Institute (Instituto del Fondo Nacional de la Vivienda para los Trabajadores or INFONAVIT) to detect inconsistencies in payroll, contributions, contracts and the Registry of Specialized Service Providers (Registro de Prestadoras de Servicios Especializados u Obras Especializadas or REPSE) registrations, as established in the 2021 subcontracting reform
• inspection methodology combining document analysis, interviews and on-site verification at workplaces, correlating documentation with actions carried out at work centers

Types of Oversight Actions

Types of oversight actions include the following:

• REPSE Verification Visits: Validation of contractor registration and documentation
• Specific Subcontracting Inspections: Review of contracts, payroll, training and staff interviews
• Ordinary and Extraordinary Inspections: Covering general working conditions, safety and hygiene and training, with a cross-cutting focus on subcontracting

Key Compliance Points

To comply with the new protocol, entities must have:

• valid REPSE registration
• specialized service contracts with complete details (beneficiary, address, number of workers, term, purpose)
• acknowledgments from Information on Contracts for Specialized Services or Works (Informativa de Contratos de Servicios u Obras Especializados or ICSOE) and Subcontracting Information System (Sistema de Información de Subcontratación or SISUB)
• properly define interactions and functions to be performed by service providers' personnel, as well as their identification at work centers
• general labor documents in order, such as payrolls, determination sheets (i.e., Sistema Único de Autodeterminación or SUA), individual contracts and training certificates

Risks and Penalties

Noncompliance may result in the following:

• fines from 2,000 to 50,000 units of measurement and update (UMA) (approximately MX$226,280 to MX$5,657,000)
• cancellation of REPSE registration
• tax crimes with prison sentences of three to nine years in cases of illegal or simulated subcontracting

Strategic Recommendations

The following is recommended to deal with the new protocol:

• audit contracts and specialized service schemes to confirm compliance with regulations
• update files and contractor supervision mechanisms
• align daily operations with contract scope, avoiding risks due to inconsistencies

This protocol strengthens enforcement capacity and raises the level of administrative-labor regulatory compliance.

Prevention and compliance are now more critical than ever, especially considering structural changes expected with workday adjustments starting in 2027, making labor engineering essential to avoid sanctions and business disruptions.

Holland & Knight is available to assist in reviewing subcontracting schemes and preparing your teams for these situations, anticipating legal and human resources (HR) departments for labor inspections. For more information, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.