Mexico Lower House Passes Bill Limiting Employee Outsourcing

Mexico’s lower house of congress on Tuesday passed a bill to regulate outsourcing and close down loopholes companies have used to avoid paying payroll taxes and social security dues.

Lawmakers approved the bill in general terms with 348 in favor, 77 opposed and 32 abstentions, while reserving some articles for debate. The bill will go to the senate once those discussions conclude.

Business lobbies had pushed back when President Andres Manuel Lopez Obrador submitted the bill late last year that sought to forbid the outsourcing of personnel to third-party firms. But last week, the president stuck a deal with business ...