After only five months in office, President López Obrador—who won by a landslide during the last presidential election and whose political party holds the majority of Congress—amended the Mexican Federal Labor Law and other applicable laws on May 1, 2019.
There are about 2.4 million domestic employees in Mexico, 95 percent of whom are women and do not have social security benefits. The Mexican Supreme Court of Justice recently held that it is not legal to exclude domestic employees from the country’s social security system, which is administered by the Mexican Social Security Institute (IMSS).
On January 9, 2019, Mexico’s National Institute of Statistics and Geography issued an official press release regarding the daily, monthly, and annual value of the Unit of Measure and Update (UMA) that will become effective on February 1, 2019.
In December 2018, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos, or CONASAMI) issued a resolution to increase the daily general minimum wage (DGMW) beginning on January 1, 2019.
As a result of July’s presidential election, Andrés Manuel López Obrador became the new president of Mexico, winning by a wide margin over his competitors. He took office on December 1, 2018, for a six-year term extending from 2018-2024.
On January 10, 2018, Mexico’s National Institute of Statistics and Geography issued in the Official Gazette of the Federation the daily, monthly, and annual value of the Unit of Measure and Update (UMA) that will become effective on February 1, 2018.
As provided by the Mexican Federal Constitution and the Federal Labor Law (FLL), employees are entitled to receive profit participation on their employer’s profits every fiscal year.
On December 19, 2016, it was issued in the Official Gazette of the Federation that the daily minimum wage for 2017 in Mexico will be Mex$80.04.
Several months ago, President Enrique Peña Nieto proposed to amend the Mexican Constitution in order to modify the labor process. The Senate of the Republic approved the amendment on October 13, 2016.
Pursuant to the November 30, 2012, amendment to the Mexican Federal Labor Law (FLL) that took effect on December 1 of the same year (the “Reform”), the FLL incorporated, among other things, changes in the law focused on maternity disability periods.
On July 15, 2016, the Third Circuit Court on Administrative Matters, acting in plenary session (based in Jalisco), published a Judicial Interpretation titled, “Provision of Independent Services: In order to determine whether or not outsourcing personnel falls within the scope of the exemption under the Value Added Tax, as set forth in the second to last paragraph of article 14 of the applicable law, it is necessary to consult the provisions of article 15-A of the Federal Labor Law.”
In accordance with the International Labour Standards on Freedom of Association (enshrined in the International Labour Organization (ILO) Constitution, the ILO Declaration of Philadelphia, and the ILO Declaration on Fundamental Principles and Rights at Work) and the Mexican Political Constitution, Mexico’s Administration of Labor Inspection of the Labor Ministry has issued the Collective Bargaining Freedom Protocol measure, which, among other things, establishes the procedures and rules that inspectors of the administration will have to follow when conducting labor-related inspections at the worksites of employers operating in Mexico to verify the existence or absence of collective bargaining agreements (CBAs).