Risks of not being under an IMSS registration number

Published August 25th, 2021

The past article mentioned 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 regime and following the legal provisions, the employer has the obligation to register each worker participating at the site and communicating their discharges and their salary modifications. This with the aim that workers receive benefits following the law.

First, it is important to understand that complying with each of the formalities for building a house is primarily to avoid legal problems. The consequences of failing to do so could result in a loss of time and money to the person who defaulted.

Some of the aforementioned risks are:

Fiscal responsibility: by not making the corresponding payments as a taxpayer, derived from registration in the employer and workers’ contracts before the IMSS.

Fine by the IMSS: in the same manner required payments can be converted into a tax liability that can be collected via an enforcement procedure. It could also fall into a seizure of their assets to guarantee said fine through the auction of the 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.

The allegation by workers: claims brought which would lead to the payment of more fines by the authorities 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 an especially high-risk condition at a construction site because if any of the workers are injured, the employer must take the responsibility for payment of the medical expenses in case of not having medical attention by the IMSS.

The main intention of IMSS is the protection of a vulnerable sector in the population. In other words, ensuring the protection of workers through compliance with their rights by the owner. 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 legal and fiscal representation throughout the construction process.

For more specific information on this matter as well as all labor IMSS, legal and notarial services including residential and commercial closings including fiscal (capital gains), and estate planning please contact the author: