New Home Office Reform in Mexico

By Prof Sergio Guerrero Rosas, Guerrero y Santana, S.C.

The chamber of deputies recently approved reforms to the Federal Work Law, whose purpose is to regulate telework, or “home offce”. These reforms began in January 2021, providing more precision to the definition of telework, that consists of performing paid activities, in a place different to that or those of the employer, using information and communication technologies.

It also establishes the regulation of employment relationships in the cases where the employee spends more than 40% of their time at home or in any other place different to that established by the employer. Additionally, remote work performed irregularly and infrequently will not be considered telework.

These reforms consider “special obligations” to provide, install, and maintain the necessary equipment; to absorb the costs generated by the telecommunication and electricity services, and to implement mechanisms to preserve the safety of information and data.

Considerations for companies:

• To provide, install, and maintain all equipment necessary for telework, such as computing devices, ergonomic chairs, and printers.
• To absorb the costs generated by telework, including the payment for telecommunication services and a proportional part of the electricity.
• To maintain the records of all supplies delivered to teleworkers.
• To respect the right to disconnection at the end of the working day by teleworkers.
• To incorporate teleworkers in the mandatory regime of social security.

Considerations for employees:

• To have the utmost care in the safekeeping of the equipment, materials, and supplies received from the employer.
• To inform immediately about the agreed-upon costs for the use of telecommunication services and the consumption of electricity.
• To adhere to and use the mechanisms and systems for the supervision of their activities.
• To adhere to the data-protection policies and mechanisms used in performing their activities, as well as the restrictions regarding its use and storage.

Companies will face important challenges to ensure the adequate fulfilment of their fiscal and social security obligations, by having to design and implement changes in their policies regarding work tools and compensation. Some of the questions they need to answer are: Will they provide the required tools and compensation in kind or in cash? What requisites must they consider in order to guarantee the deductibility of these expenses for Income Tax purposes?

Prof Sergio Guerrero Rosas

GGI member firm
Guerrero y Santana, S.C. Advisory, Auditing & Accounting, Corporate Finance, Law Firm Services, Tax
Tijuana, Baja California, Mexico
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Guerrero y Santana, S.C. provides its clients with a wide range of tax, legal, and consulting services. The firm has been helping clients – from individuals and small local businesses to major corporations and multinationals – to achieve their smallest aims and grandest ambitions. They are committed to providing specialised, personalised services to all those seeking reliable and up-to-date tax, legal, and business support.

Prof Sergio Guerrero Rosas, Managing Director at Guerrero y Santana, has over 25 years’ experience advising companies from SMEs to multinationals, as well as individuals, on tax and estate planning. He is also Global Vice Chairperson of the Trust and Estate Planning Practice Group and Latin American Chairperson of the GGI International Taxation Practice Group (ITPG).

Published: International Taxation Newsletter, No. 14, Spring 2021 l Photo: Marcos - stock.adobe.com