Mexico’s New Proposed Amendment to Eliminate Outsourcing

On November 12, 2020, during a recurring morning press conference, President Andrés Manuel López Obrador issued an amendment proposal to reform various laws with the aim of establishing a new regulation to the outsourcing scheme currently in effect in Mexico.

Mexico Supreme Court Upholds One-Year Cap on Back Pay

On January 20, 2016, the Second Chamber of Mexico’s Supreme Court, in plenary session and by a majority vote, issued a decision holding that the reformed Article 48 of the Mexican Federal Labor Law (FLL) does not violate the Mexican Constitution. Therefore, the accrual of back salaries (or back wages) claimed by plaintiffs in cases that were filed after November 30, 2012) will be capped at one year from the date the plaintiff was allegedly discharged. The application of this amendment will not be retroactive to any case filed before November 30, 2012.