What Is Repse?
What's RePSE in Mexico and who's to register?
REPSE is the acronym of Register of Specialized Service or Specialized Work Providers. It is the mechanism for regulating subcontracting in Mexico and making it transparent. Given that Mexico is Latin America's second-largest economy and 60% of the population is economically active, it is a key factor seeking to ensure transparency, legality and workers' rights.
Article 15 of the Federal Labor Law establishes that individuals or legal entities that provide specialized services or perform specialized work must be registered with the Ministry of Labor and Social Welfare. (STPS)
To achieve compliance, it's important that you get up to date with reforms and changes to labour regulations so that your company doesn't have fines or other legal consequences. Keep reading and learn everything about this employer obligation in Mexico!
Benefits of Repse
Registration is important because it helps build a fairer, more equitable work environment for millions of workers in the country. Here are the benefits of Repse:
- Protection of labour rights: REPSE seeks to ensure that outsourced workers receive the same labor rights and benefits as direct employees.
- To fight tax evasion and the informal economy: The aim is to ensure that companies that subcontract meet their tax obligations and contribute to the country’s economic development.
- Reduction of legal and fiscal risks: Operating legally and meeting labor and tax obligations minimizes the risk of penalties, fines or labor lawsuits.
- better management of human resources: It facilitates the efficient management of human resources, enabling adequate planning, recruitment and management of outsourced personnel.
Who should register with RePSE?
If you provide specialized services or carry out specialized work and make your own workers available to the contracting party to perform them, you must register in the REPSE registry (Public Register of Contractors Providing Specialized Services or Specialized Work). For individuals or legal entities. Therefore, if you provide specialized services but do not place workers at a third party’s disposal, you do not need to register.
You must demonstrate that you are up to date with tax and social security obligations and substantiate the specialized nature of the activities you wish to register.
What Are REPSE Specialized Services?
The most important aspect of this digital registry is the provision of specialized services.
What does this term mean?
Basically, it justifies the validity of subcontracts in an undertaking, as long as specialized services or works are at Public Registry of Contractors for Specialized Services or Specialized Works of the Ministry of Labor and Social Welfare
Likewise, these tasks must not be included in the corporate purpose or main activity of the organization contracting the service in question.
The following are examples of some services that by their nature have to be registered with the REPSE:
- Installations and renovations in companies, industrial plants and/or mines.
- Industrial Cafeterias
- Cleaning companies
- Maintenance Companies
- Gardening companies
- Surveillance or Security Companies
- Design, Marketing and / or Videos Producer agencies that install or run their campaigns and / or videos at the client's site.
- IT companies that implement solutions and/or provide training at their customer’s facilities.
What are the requirements of REPSE?
There are 2 fundamental requirements:
- You must demonstrate your specialist status, as well as the activity you want to register.
- You have to be up to date with your tax and social security obligations To SAT, IMSS and INFONAVIT.
What is needed to apply for REPSE registration?
- Visit the official REPSE website https://repse.stps.gob.mx with the electronic signature (e.firma) of the person to be registered.
- The system automatically checks for outstanding debts with IMSS, Infonavit and SAT. Any debt must be resolved before attempting registration again.
- After compliance with tax and social security obligations is confirmed, the system requests general information about the individual or legal entity to be registered, along with the service provider company's articles of incorporation or tax status certificate.
- Indicate level and risk category as referred to in the catalogue of activities for classification in IMSS risk insurance
- Transcribe the activities to be registered as shown on the tax status certificate or in the company’s corporate purpose.
- The tax status certificate showing the activities to be registered, or the articles of incorporation showing the corporate purpose, must be scanned.
- Indicate which category in the displayed attached catalog covers each of the requested activities.
- To complete a questionnaire for each activity from which registration has been requested.
- The system then asks you to upload the different required documents in PDF format.
- After uploading information and documentation, the platform will provide a folio number to track the registry.
What is needed to apply for REPSE registration?
The Ministry must issue a decision on the application within 20 days of receiving it. If it does not do so, applicants may request the corresponding decision within the 3 days following submission of the request. If that period expires without notification of the decision, registration will be deemed legally completed.
Monitor Regulatory Compliance
One thing that stands out about REPSE is the oversight exercised by the STPS over both specialized service providers and the companies that hire them. Therefore, it is important for HR (RR.HH.) to keep detailed records of all actions related to relationships with these providers.
The goal is mutually beneficial collaboration, complying with the law and ensuring compliance by specialized suppliers.
