June 11, 2019

Obligations and Prohibitions Under Mexico's Labor Reform

Holland & Knight Alert
Leslie Palma

The amendment of Mexico's Federal Labor Law (LFT) passed on May 1, 2019. For your reference, below is a summary with the updated obligations and prohibitions for employers:

Obligations

  • Individual work contracts. Include a clause or make an addendum for the worker to designate their beneficiaries for death or disappearance derived from criminal acts, in order that they receive payment of benefits generated by the worker. In case of not having the addition mentioned, the employer must provide the names and addresses of the registered beneficiaries before him.
  • Payment receipts. These must be delivered to the worker in printed copy or electronically.
  • Discrimination protocol. Design and implement a protocol to prevent discrimination, sexual harassment and harassment, and that includes equal gender and inclusion opportunities.
  • Collective labor contracts copy. A printed copy of the collective bargaining agreement must be delivered to the workers free of charge.
  • Review of collective contracts. These should be reviewed at least once in the next four years with the approval of the workers according to the guidelines issued by the authority (pending publication in November 2019)
  • Temporary workers. The employer will have a special register of workers hired for temporary employment.
  • Automation. When it comes to the implementation of machinery or new work procedures, which results in the reduction of personnel, in the absence of agreement, the employer must obtain the authorization of the court.
  • Psychosocial risk. Companies must address psychosocial risk factors that their employees have, such as work stress, anxiety and sleep imbalance. During 2019, companies must identify these factors, and by the end of 2020 the STPS may apply sanctions for not finding that these factors were identified and that they were served through an action plan.

Prohibitions

  • Simulations. Cover up an employment relationship to avoid compliance with labor obligations and/or social security, and register a worker with a salary lower than what he or she actually receives.
  • The signing of documents. Require the signing of blank papers at the time of hiring or at any time.
  • Notifications. Denying access to an establishment or work center to the actuary or notifier of the labor authority, when the latter requests to make a notification or diligence, or refuse to receive the documents related to the notification ordered by the labor authority when it is addressed to the registered entity.
  • Union membership. Oblige workers by coercion or by any other means to join or withdraw from the union or group to which they belong and perform any act tending to exercise control over the union to which their workers belong.
  • Labor termination with pregnant women. The pregnant worker who has been fired cannot be unsubscribed from the social security institution with which she is affiliated.
  • Social Security. In cases in which discrimination in employment is claimed, such as discrimination due to pregnancy, sexual orientation or gender identity, as well as in cases of child labor, the enjoyment of fundamental social security rights cannot be canceled.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.


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