Amendments to Mexico’s Federal Labor Law Published 1 May 2019

Amendments to Mexico’s Federal Labor Law Published 1 May 2019

Bill amendments to Mexico’s Federal Labor Law (the Law) were filed on 22 December 2018 at the Chamber of Representatives and approved on 29 April 2019. The amendments were published on 1 May 2019 and include the following important matters, summarized below (click here to read the full article published by Ally Law member firm Cornejo Méndez González & Duarte, S.C. Abogados):

  • Beneficiaries appointment. Labor agreements shall appoint beneficiaries of wage payments and accrued but unpaid labor benefits upon employees’ death or those generated due to decease or disappearance of employee originated from a criminal act, as referred in article 501 of the Law.
  • Labor relationship agreement termination. Labor relationship agreements will be valid without the approval of the labor authority, nevertheless, such agreements may be challenged before Court, but only regarding the clauses that involve waiving the rights of employees, the rest of the clauses will remain valid.
  • Notice of labor relationship termination. The absence to give notice of termination to the employee, either personally or by means of the Court will presume wrongful termination, unless otherwise proven that the dismiss was with cause.
  • Execution of blank documents. Article 48BIS is added, containing certain actions subject to penalties.
  • CFDI digital receipts. Article 101 includes the possibility of substituting printed receipts with digital receipts known as CFDI, according to specific requirements.
  • Employees’ discounts. A paragraph is added to Article 110, section VI, as follows: “VI. Payment of union dues established in the statutes of the union.” The employee may express in writing its decision of not being charged with the union due, in which case the employer shall not discount it.
  • Employers’ obligations. Sections are added to Article 132, regarding certain employer obligations.
  • Prohibitions to employers. Article 133, section IV is modified with respect to certain employer prohibitions.
  • Domestic employees. According to Article 137, domestic employees will have the right to be registered before IMSS, effective when the corresponding regulations are issued.
  • Unions and collective bargaining. Several articles of the Law are amended to strengthen union democracy and collective bargaining freedom in accordance to the terms agreed at the T- MEC and the 98th agreement of the ILO.
  • Conciliation Centers and Labor Registry. The creation of a Federal Conciliation Center and Labor Registry, as well as in each of the states for local matters, is established.
  • New labor procedure. Amendments include a range of procedural and administrative requirements regarding notifications, registry systems, job offerings, and lawsuits, among other areas.
  • Current procedure. While the activities of Labor Courts and Conciliation Centers start, the Conciliation and Arbitration Boards shall keep analyzing individual and collective labor procedures, and shall be governed by the provisions that were standing just before the entry into force of the Decree.

 

Labour Laws Mexico and Ally Law

The above is a summary of the amendments. For specific details, please click here to read the full article by Alfonso González Uribe of Ally Law member Cornejo Méndez González & Duarte, S.C. Abogados.

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