What are the most significant cases or transactions that your legal team has recently been involved in?

Over the past year, my legal team has been extensively involved in audits and litigation related to the Mexican Social Security Institute (IMSS). Given that the IMSS is a key institution in Mexico’s social security system, it frequently reviews compliance with employer obligations.

Below is an overview of some of the most critical cases and transactions my team has been involved in:

Compliance with new regulatory frameworks — We have been actively engaged in ensuring that the company complies with new regulations and reforms in Mexico’s social security and labour laws, including the Registry of Specialised Service Providers and Specialised Works (REPSE). This has involved a thorough review and updating of existing policies and procedures to align with legislative changes. For instance, recent reforms related to subcontracting required meticulous legal analysis and adjustments to the legal framework for construction companies that subcontract services. We have analysed and modified contracts with our suppliers to meet all the requirements of the authorities and adapt the company to the new regulatory environment.

Compliance of contractors with the REPSE — the team I oversee, consisting of five lawyers, has worked on the proper implementation of the REPSE with over 500 of the company’s contractors and suppliers, which is crucial for the hiring of specialised services and the execution of works. We have reviewed and validated the documentation of the providers to ensure that they meet the REPSE requirements. This includes resolving conflicts where providers have argued against the processing of their registration, ensuring compliance with legal requirements for their proper hiring.

Challenges with contractors and compliance with the contractor registry system (SIROC) — regarding contractors, we have addressed several cases related to compliance with the SIROC. This involves reviewing contracts, managing issues related to the registration and certification of contractors. Our work has been key in resolving these disputes and ensuring that contractors meet their legal and fiscal obligations.

IMSS compliance audits — a significant area of my work has been handling exhaustive audits to ensure that both contractors and specialised service providers comply with their fiscal and social security obligations. Over the past year, we have managed a total of six major audits that have been crucial in ensuring compliance with the regulations established by the Mexican Social Security Institute (IMSS). These audits include a detailed review of reports and documentation submitted to the IMSS, identifying potential non-compliances, and preparing reports that detail our findings and recommendations. To enhance the effectiveness of this process, we have implemented a series of measures that have had a notable impact. For example, the risk of being fined was reduced by 99%. This drastic reduction in the risk of penalties not only safeguarded the company from costly fines but also resulted in savings equivalent to several million pesos in avoided penalties. These savings were achieved through a proactive approach to managing audits and implementing solid policies and procedures to ensure regulatory compliance from contractors and suppliers. Additionally, we significantly reduced response times during audits. Previously, preparing for and responding to audits could be lengthy and complex processes, but the new strategies and tools implemented have allowed for a considerable reduction in the time required to complete these processes. This increase in efficiency not only enhances our responsiveness but also reduces the administrative burden associated with managing audits. Another notable improvement is that 100% of the audits conducted in the past period were handled with determinations of quotas lower than the previous year. This exceptional result reflects the success of our corrective and preventive measures. Through a thorough review and implementation of appropriate changes in our processes and procedures, we have ensured that our practices align with IMSS requirements, eliminating any areas of concern during audits. In specific cases, we have helped implement corrective measures to address issues identified during previous audits. This has included updating internal policies, training staff on compliance matters, and improving document management. Thanks to these actions, we have been able to maintain continuous compliance with current regulations and avoid future non-compliances. In summary, effective audit management has been key to reducing the risk of penalties and fines, achieving significant cost savings, and optimising response times. The implementation of proactive and corrective strategies has allowed all recent audits to be completed without observations, highlighting the success of our approach to regulatory compliance and continuous improvement of our processes.

Nullity lawsuits against the IMSS — we have handled several nullity lawsuits challenging administrative acts of the IMSS. These lawsuits generally involve contesting decisions related to penalties, fines, or the interpretation of applicable regulations. Our team has been involved in preparing robust legal defenses and representing the IMSS in judicial proceedings to ensure that its decisions are validated and the legality of administrative acts is upheld. This has involved a thorough review of the contested decisions, gathering relevant evidence, and preparing legal arguments for the defense of the IMSS. We achieved a favorable ruling, saving more than $6,000,000.00 in credits, fines, and surcharges.

Review and management of contracts with specialised service providers — drafting, reviewing, and managing contracts with specialized service providers have been key focus areas. These contracts must comply with REPSE regulations and IMSS provisions. We have addressed contractual issues that arose during the execution of these contracts, such as disputes over the scope of services, the quality of work, and compliance with fiscal and social security obligations. Additionally, we have helped resolve conflicts and renegotiate terms to ensure compliance with legal obligations.

Implementation of internal policies for regulatory compliance — we have collaborated in developing and implementing internal policies to improve compliance with REPSE and SIROC. This includes creating standardised procedures for evaluating and hiring suppliers and contractors, as well as implementing internal control mechanisms to ensure ongoing compliance with current regulations.

In summary, my legal team has been deeply involved in a variety of significant cases and transactions related to the IMSS in the context of contractors, SIROC, and REPSE. We have addressed compliance challenges, handled exhaustive audits, defended the company in nullity lawsuits against the IMSS, and provided comprehensive advice on new reforms and contracts. Each of these areas has required a specialised approach and strategic problem-solving to ensure that the company maintains its operations legally and efficiently.

Could you share an example of a time when you came up with an innovation that improved how your legal team works and did not come at a large expense?

Sure. An example of a cost-effective innovation that significantly improved the efficiency of our legal team was the implementation of a digital document management system. This system involved conducting contracts via electronic signatures and creating a repository where all company collaborators could access documents. Previously, our team relied heavily on physical documents and manual files, which resulted in a time-consuming process prone to errors. To address this issue, we developed an internal digital filing system using widely available software tools and established standardised procedures for document organization and access. This system included: (i) centralized digital repository — we created a centralised digital repository where all legal documents could be stored and easily accessed by team members. This eliminated the need for physical storage and allowed for faster document retrieval; (ii) standardized naming conventions — we implemented standardised naming conventions for files to ensure consistency and facilitate easier searches. This included categorising documents by type, date, and case or project; (iii) automated workflows — we set up automated workflows for document review and approval processes. This reduced the time spent on administrative tasks and improved overall response times; (iv) access and security controls —  we established access controls to ensure that only authorised team members could view or edit sensitive documents, enhancing our data security.

The implementation of this digital document management system did not require a significant financial investment, as it utilised existing software and resources. However, it brought substantial improvements to efficiency, including faster document retrieval, reduced administrative overhead, and minimised the risk of errors. Overall, this innovation has greatly enhanced our team’s productivity and our ability to manage legal documents effectively.

Additionally, we contracted a specialised platform for validating documents required to meet employer obligations related to REPSE. This technological tool enables thorough and efficient verification of the required documentation, ensuring that all submitted documents comply with the standards and requirements set by the authorities.This has not only facilitated administrative management but also improved efficiency in meeting REPSE legal obligations.

What is a cause, business related or otherwise, that you care about, and why?

In my role as head of subcontractor contracts and IMSS, I recognise the importance of maintaining ecosystem integrity through sustainable practices. Our work involves managing contracts and ensuring compliance with regulations related to social security and specialised services. Part of my responsibility includes ensuring that subcontractors adhere to current environmental regulations. Environmental degradation, such as deforestation and pollution, can negatively impact the health of our ecosystems. Therefore, it is crucial that all subcontractor contracts include clauses that promote environmentally responsible practices, contributing to the sustainability of natural resources.

The decisions we make regarding subcontractor contracts and compliance with IMSS regulations not only affect our company in the present but also have a long-term impact on future generations. Implementing sustainable practices in our contracting processes can help reduce our company’s ecological footprint. I feel a strong responsibility to ensure that our contracting and compliance practices are not only legally sound but also environmentally responsible, thereby contributing to a healthier future for the next generations.

Adopting sustainable practices in contract management and regulatory compliance can bring significant economic and social benefits. Implementing clean technologies and efficient processes in our contracts can reduce operational costs, minimise risks, and enhance our market reputation. On a social level, ensuring that our subcontractors comply with environmental regulations can improve the quality of life in the communities where we operate by reducing exposure to pollutants and fostering a healthier work environment.

Personally, I deeply value the time I spend in nature and the beauty of the natural environment. This connection has led me to appreciate even more the importance of preserving natural spaces and promoting sustainability. In my role, this translates into ensuring that our contracting and regulatory compliance practices respect and protect the environment, aligning our policies with my personal values regarding environmental protection.

Environmental issues are a global challenge that requires cooperation and collective action. In my work, this means collaborating with our subcontractors to ensure they meet international environmental standards. By supporting initiatives that promote sustainability and aligning our contracting practices with these principles, I am contributing to a broader global movement to address urgent issues like climate change and biodiversity loss.

In summary, environmental sustainability is a cause that resonates deeply with me due to its critical importance for the health of the planet and the well-being of future generations. In my role as head of subcontractor contracts and IMSS, I am committed to supporting initiatives that promote responsible and sustainable practices, making a significant difference through our operations and contributing to a greener and more sustainable future for all.