An employment model that has gained great popularity in recent years is outsourcing, either because of its acceptance as an outsourcing scheme and labor dispute resolution; or, because it is considered a doubtful model, and a setback in workers’ rights. 

Should you outsource the hiring in your company? Before making a decision, make sure you know and understand the answers to the following questions.

A labor model that has gained great popularity in recent years – not being surrounded by controversy – is outsourcing. For some, this online outsourcing work Philippines scheme is the solution to labor disputes; for others, it is a setback in workers’ rights.

Should you outsource the hiring in your company? Before making a decision, make sure you know and understand the answers to the following questions.


What is Outsourcing?

Outsourcing is an Anglo-Saxon term that can be translated as ‘outsourcing’. In today’s business world, this term is used to designate the process by which a company or organization hires another external company to take charge of a certain part of its activity or process. The word outsourcing is an Anglicism that is composed of the voices out (outside) and source (source or origin), that is, external source. Based on the above, it can then be said that when we use the term outsourcing, it means that we are talking about outsourcing services.

Outsourcing, also known as the outsourcing or service provision regime, is a legal and fiscal figure that allows an employer to hire the services of one or more workers through an external company and “indirectly”.

However, outsourcing is a business practice that must be very well analyzed before its application in a business or company because although it is a very positive practice in companies in Mexico, sometimes, if you do not have a Responsible company, the result may be negative. Among the positive effects that outsourcing has for companies, we can mention the following:

  1. Reduce manufacturing and equipment costs.
  2. Place more human resources and technology available to the company.
  3. It gives the company the opportunity to respond and adapt quickly to business changes.
  4. It allows the company to focus on the key areas of its business.
  5. Return to the most competitive company.

 On the other hand, if the company you hire does NOT have the experience it requires, you may experience negative results such as those presented below:

  1. Outsourcing costs may end up being higher than expected.
  2. The change of Supplier Company can be economically and productively negative.

One of the reasons why more and more businesses opt for this contracting model are the tax benefits offered, and specifically, the tax deduction. However, the virtues or defects of this system will depend on the way in which both the contractor and the service provider carry out their commercial relationship, which may affect or benefit your interests.

Basic Law Benefits

If you work for a company but your contract is signed by another, you are possibly working under the outsourcing or outsourcing scheme, in which case you are entitled to eight basic benefits by law, your rights are: Written contract, seniority, social security, bonus, Afore vacation, and vacation bonus.

The outsourcing scheme allows the hiring of a company, which makes employees available for carrying out activities within another.

Every worker should know that outsourcing companies must comply with all the benefits of the Law and that they should have the same rights as any other job in a company that directly hires its employees.

If the company that outsources your services is failing in some, turn on the alert because it may be that it is not legal and that it is not quoting as indicated by law.

Does Outsourcing Violate Labor Rights?

If a company has the necessary material elements to deal with labor obligations, this figure does not violate the rights of workers at all. On the contrary, if these elements are not available, a company may incur a violation of the Federal Labor Law.

In the first criteria issued by the Supreme Court of Justice of the Nation, this figure was declared unconstitutional, as it was considered to attack and distort labor rights. Likewise, it was established that the work could not be traded and that this figure represented a lease of workers.

However, in the last criteria issued by the highest court in our country, there is a tendency to “legalize” this work system, which is an undeniable daily reality of our national production system.

How to Find the Best Outsourcing?

There are countless companies dedicated to providing outsourcing services. Before choosing which one to hire, you should take special care with those that have doubtful fiscal and labor addresses, as this is a sign that the company does not have the material elements to meet its obligations, which could have serious consequences in the future not far away. 

Due to the delicate nature of the issue and above all because it is a decision that directly affects or benefits your company, we recommend you go to your lawyer and trusted accounting specialist so that together they analyze the pros and cons of the outsourcing scheme.

What Aspects Should I Take into Account when Hiring an Outsourcing?

However, as an entrepreneur it is recommended that, if you decide to enter this system, you begin by analyzing the economic situation of the service provider that you have decided to hire, looking for references with other users. Make sure that the external company has enough material elements to meet the employer’s obligations arising from the commercial activity between the two. 

In the same way, it is suggested that monthly you make sure that the outsourcing that you have hired makes the payments in a timely manner, as well as that it complies with the social benefits of the workers. With this, you are not only exercising your right as a client, but you are also fulfilling a labor obligation.



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