Labor Law Compliance

Our client is a global provider of innovative supply chain solutions for companies in the aerospace, defense, manufacturing, and pharmaceutical industries. The Mexican Government updated its labor and social security laws, limiting the use of subcontracted (“outsourced”) employees, and provided companies a 90-day limit to be in compliance with the new regulations.  This change severely impacted the operations of our client and engaged Nepanoa to find a solution.

Client Challenges

• Need to complete the hiring process of ~400 outsourced employees in less than 45 days. 

• Ignorance of the new labor law in Mexico.

• Harmonization of benefits and compensation packages for all new and existing employees.

• Manage communications and decisions through nearly 600 communication channels with stakeholders located in various cities across the United States, United Kingdom, Poland, and Mexico.

• Absence of standard, automated, and online tools to manage human resources.

• Lack of recruitment, hiring, and retention processes.

How Nepanoa Added Value

We accompanied our client through the Execution Strategy, Set-up, and Execute phases of our Transformation Lifecycle to overcome its challenges and accomplish its aggressive goals. The Nepanoa team fully immersed itself as part of the client’s transformation team, bringing technical knowledge, unparalleled commitment, and expertise to “get things done”. 

Execution Strategy:  Developed an execution strategy for a new human resources model.

• Designed an execution strategy to accomplish the new resource model.

• Identified main stakeholders and law requirements.

• Customized management tools for our clients.

• Shared project plans with third-party service providers.

• Established success metrics and criteria.

• Designed a communication strategy to address all stakeholders.

Set-Up:  Established a cross-functional governance team to execute the work.

• Managed efforts of all stakeholders involved.

• Identified activities, documents, statements, and legal procedures required to perform an employer substitution in terms of labor & social security law.

• Updated the list of current employees and consolidated their information

Execute:  Led the hiring sprint efforts to accomplish the client’s goal

• Personally notified outsourced employees of the situation and the actions taking place.

• Updated our client's HR processes: weekly and biweekly payroll, and recruiting.

• Helped define and implement harmonized benefits and compensation packages.

• Managed legal, tax, and administrative activities as a result of the employer substitution.

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Results

Nepanoa ensured our client met the new labor and social security laws, helped map, define, and adopt new processes and tools to manage its workforce, and managed the creation of new benefits and compensation packages for ~400 employees.

As our client’s transformation program moves forward with other initiatives, Nepanoa continues to play a vital role as a companion every step of the way.

How can Nepanoa help you? Reach out, we’re here to help.