By Ángel Marín Díaz
In the past article, mention was made of certain minimum requirements for building a house in San Miguel de Allende, Guanajuato. It is important to always keep in mind that failure to comply with certain requirements could end with consequences depending on what requirements are ignored.
On this occasion, I intend to communicate the main risks that a person can incur when building a house or addition to a house without registering with the Mexican Institute of Social Security (IMSS). Under the employer´s program and furthermore following the legal provisions, the employer has the obligation to register each worker that is participating at the site, as well as communicating their responsibilities and their salary modifications. This with the aim that workers receive benefits in accordance with the law.
First, it is important to understand that complying with each of the formalities for building a house is primarily in order to avoid legal problems. If found to be not in compliance the consequences for the person who defaulted would be a loss of time and money.
Some of the aforementioned risks are:
- Fiscal responsibility: by not making the corresponding payments as a taxpayer, derived from registration by the employer and contracted workers before the IMSS.
- Fine by the IMSS: in the same manner the required payments can be converted into a tax liability which can be collected via an enforcement procedure; and also it could result in the seizure of the employer’s assets to pay the fine through the auction of seized goods.
- Payment of construction differences: differences that can be a large amount of money.
- Having to pay skipped fees: constitutive capital for work risks or any of the benefits accrued from the workers.
- Allegation by workers: claims which would lead to the payment of additional fines by the employer and the hiring of lawyers.
- An employer who does not register his workers becomes a jointly responsible person, meaning he is responsible for the worker. This is a more delicate situation at a construction site because if any of the workers are injured, the employer must take the responsibility for the medical expenses in the case of not having medical attention through the IMSS.
The main purview of the IMSS is the protection of a vulnerable sector in the population. In other words, the protection of individual workers by ensuring full compliance with their rights. Therefore, as a recommendation, always try to follow the provisions established by the law and avoid unfortunate situations.
The best way to achieve this is through proper fiscal representation in and throughout the construction process.
For more specific information on this matter as well as all labor-related IMSS issues, legal and notarial services including residential and commercial closings, fiscal (capital gains) matters, and estate planning please contact the author:
Ángel Marín Díaz at: info@inmtec.net, 415 121 9005 (754) -107-0163