Mexico’s New Requirements to Validate Existing Collective Bargaining Agreements: What Employers Need to Know

On July 31, 2019, Mexico’s Ministry of Labor and Social Welfare or Secretaría del Trabajo y Previsión Social (STPS) published in the Official Gazette of the Federation (Diario Oficial de la Federación) (DOF) the protocol to legitimize currently existing collective bargaining agreements (CBAs).

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).

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.