Tag: labor reform

Mexican labor reform decreases agency work volume of business by 80%

The regulatory outlook for the staffing industry remains negative for the next six months in 13 countries, according to the World Employment Confederation’s recently released Staffing Executive Regulatory Outlook report. The impact changes in regulation are expected to be neutral in seven countries and positive in four.

Overall, the staffing industry anticipates regulatory changes to have a positive impact in the Netherlands, Spain, UK and Italy.

The report noted following the Mexican labor reform implemented in September 2021, agency work is no longer allowed in Mexico, decreasing the volume of business by 80% compared to the situation before the reform. However, agency work can continue operating in “specialized services” falling outside the core activity of the user company.

In Europe, the expected negative regulatory changes include:

  • A new regulation on the maximum length of an assignment in Sweden.
  • A new regulation on statutory sick pay and pensions in Ireland.
  • Discussions and possible regulation on the overall protection of agency workers covered by collective labor agreements in Germany, linked to the EU Court of Justice proceeding.
  • Discussions on the use of agency work in the healthcare sector in both Denmark and France.
  • A new law entering into force in Norway on maximum length of assignment and a regional ban in the construction sector.

The biannual poll includes responses from executives of 24 different national staffing federations. It was conducted in October.

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