Mexico’s Minimum Wage Set to Increase on January 1, 2023

On December 1, 2022, Mexican President Andrés Manuel Lopez Obrador announced that, unanimously, the business and labor sectors, as well as the government, had agreed to increase the minimum wage by 20 percent for 2023, which will be applicable in the Free Zone of the Northern Border (Zona Libre de la Frontera Norte or ZLFN), as well as the wage applicable in the rest of the country.

Mexico’s Pending Health and Safety Rules on Teleworking: What Do Employers Need to Know?

On January 11, 2021, the federal government published a decree in the Official Gazette of the Federation, amending the Federal Labor Law (FLL) to regulate the terms and conditions, employer and employee obligations, and safety and health measures related to telework. Telework is regulated by a special chapter of FLL and the telework designation is applicable whenever work is performed more than 40 percent of the time at an employee’s home or at a domicile that the employee has chosen and on which the employee has agreed.

The Right to Disconnect Under Mexico’s Telework Regulations—What Does It Mean for Employers?

On January 12, 2021, the right to disconnect (known in other countries as the “right to digital disconnection”) became an employment right in Mexico for employees in telework arrangements, with the publication of an amendment to the Federal Labor Law (FLL) in the Official Gazette of the Federation (Diario Oficial de la Federación) the day prior.

Mexico’s New Minimum Wage for 2022

The Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) approved, by a majority vote on December 01, 2021, an increase to the daily minimum wage applicable in Mexico (including the corresponding amount applicable in the Free Zone of the North Border (Zona Libre de la Frontera Norte or ZLFN).

Mexico’s Registry of Individuals or Legal Entities That Render Specialized Services or Execute Specialized Works

On May 24, 2021, the Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social) (STPS) published guidance under the recently amended Mexican Labor Law in the Official Gazette of the Federation clarifying the outsourcing registration requirements for individuals and entities that provide subcontracting services. The amendment generally prohibits employers from subcontracting or outsourcing personnel, but includes carve-outs and exceptions under limited circumstances. The following provides a basic overview of the STPS outsourcing registration guidance.

Mexican Labor Law Amendment Abolishes Outsourcing of Personnel

On April 23, 2021, an amendment to the Mexican Labor Law was published in the Official Gazette of the Federation. Below are the key points about the amendment and how they will affect employers that outsource or subcontract work.

Mexico’s Femicide Movement and the March 9 National Stoppage: Guidance for Employers

Recently Mexico has been facing a considerable and seemingly uncontrollable increase in femicide cases. In 2019, more than 3,825 women were killed, and the rate of femicide in Mexico increased by 6 percent from 2018. Currently, 10 to 15 women are killed every day, presumably due to their gender. An analysis conducted by the national institute of statistics and geography—the Instituto Nacional de Estadística y Geografía (INEGI)— established that over 50 percent of Mexican women have suffered violence because of their gender.

Mexico Mandates Protection From Workplace “Psychosocial Risks”

Globalization, technology developments, and the world’s economy, among other factors, have changed our day-to-day dynamics and have transformed the way we work. This means that employees must deal with emotions and circumstances that in the past were not significant but today are studied and classified by scientists as “psychosocial risks.”

The Roma Effect: IMSS Announces Test Program to Extend Benefits to Domestic Employees in Mexico

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).

Mexican National Commission on Minimum Wages Approves an Increase to the 2019 Daily General Minimum Wage and Further Establishes Two Different Geographic Areas for Its Application

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.

Outsourcing and the Value Added Tax: Mexico’s Third Circuit Reminds Employers to Consult the Federal Labor Law

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.”

Mexico’s Collective Bargaining Freedom Protocol: An Introduction for Employers Doing Business in Mexico

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).