Delivery workers need a fair tax scheme: ICC México

The organization warned that the implementation of the reform – as stipulated so far – could limit the independence that characterizes these sources of income and proposes to carefully consider the different approaches that other countries have adopted to regulate the relationship between platforms and workers.

As an example, ICC pointed to Spain, with the Rider Law, which adopted a traditional labor model, reducing sources of income for thousands of delivery people. In contrast, California and Chile have built solutions that combine independence with access to social security. Likewise, today Brazil and Colombia analyze in their congresses initiatives that seek to reconcile independence with social protection.

In addition to the damage to drivers and delivery people, “the proposal (current from the federal government) could significantly affect the restaurant sector and MSMEs with an increase in the costs of platform services, resulting in a decrease in sales in 30% for these businesses, affecting the local economy and job creation,” stated ICC.

Currently, the applications do not provide social security to delivery drivers and those who have access to the Mexican Social Security Institute, for example, do so because they have another job or have optional insurance because they are students.

ICC proposals

These are the four recommendations of the ICC to the bill presented by the government of Mexico:

Preserve the figure of independent workers

The law must include a precise definition of the criteria that distinguish between those independent workers who provide services occasionally, from those who will be considered workers under the new model proposed by the reform.

Recognition of operating expenses

It is essential that the legislation recognizes that delivery workers and drivers invest in vehicles, gasoline, maintenance, smartphones with a data plan and other operating expenses, so the social security contribution base must be calculated on their net earnings.

Fair tax scheme

The reform must avoid modifying the special tax regime for delivery workers and drivers to a traditional scheme that would drastically increase their tax burden.

Intellectual property protection

The reform must contemplate mechanisms that provide certainty and clarity about the operation of the platform, without compromising the intellectual property with which technology companies operate.