Mexico: Social Security Institute Mulls Whether COVID-19 Qualifies as Occupational Illness, Mexico City Implements Outsourcing Reporting Requirements

February 25, 2021

The Mexican Institute of Social Security recently issued a resolution to determine whether certain serious cases of COVID-19 qualify as an occupational illness under Mexican law, as initially reported by Lexology
 
Implications for employers: If deaths or temporary disabilities due to COVID-19 are classified as a professional risk, employers could see accident rates affected which in turn could increase an employer’s insurance rates. In a similar fashion, several states in the United States have already amended workers’ compensation coverage so as to automatically include contraction of COVID-19 as an occupational injury. 
 
Employers with operations in Mexico should develop procedures to track the spread of COVID-19 among their employee population. Employers should evaluate, on a case by case basis, and to the extent possible, whether an employee who has contracted COVID-19 did so in the workplace. If an employer is unable to show that an employee with COVID-19 contracted it outside of the workplace, they may be subject to higher insurance premiums. 
 
Meanwhile, Mexico City implemented a new requirement to file a notice before the Secretariat of Administration and Finance when hiring or outsourcing staff. The notice must be filed within 10 days of hiring or outsourcing a contractor, regardless of the nature of the work arrangement or whether wages are paid through a third party. The notice must contain an original or certified copy of the agreement, the number of employees providing the services, the company’s name and tax identification, and the contractor’s address. The requirement is part of the Mexico City Tax Code reform, which came into effect on the first of the year.