Labor and Employment Articles


April 19, 2021

Decree Amending and Supplementing Article 90 of the Mexican Federal Labor Law

By Pablo Sáenz and Fernanda Magallanes

A Decree published in the Official Journal of the Federation on March 30, 2021, amends and supplements Article 90 to the Mexican Federal Labor Law. The main purpose of this amendment is to guarantee that the yearly review of the minimum wage, is set at a level above the inflation rate. With such change, the minimum wage will never be lower than the inflation rate during its established term, or in other words, during the year for which the minimum wage was set. The amendment’s purpose is to adjust the minimum wage to actual costs of basic goods and services based on sustained and generalized increases in costs reflected in the National Consumer Price Index. Such inflationary increase causes a … read more


April 13, 2021

Seniority Bonus Must Be Paid Even If Not Expressly Requested

By Adrian Salgado

On March 12, 2021, the Second Chamber of Mexico’s National Supreme Court of Justice published a ruling in contradiction to opinion number 2a./J. 66/2020 (10a.), titled “Seniority Bonus. Even if not expressly requested, its payment is required when the employee’s seniority is confirmed and such employee has been terminated or the employment relationship has otherwise been terminated”.  In its holding, the Court resolved the contradiction of opinions 178/2020, between the opinion XIV.T.A.7 L (10a.), issued by the Labor and Administrative Collegiate Court of the Fourteenth Circuit (previously commented on CCN MexicoReport® September 2014 issue) and the opinion issued by the First Labor Collegiate Court of the Eighteenth Circuit by its resolution to the direct amparo 17/2020. In the new opinion … read more


March 23, 2021

Factors to Consider in Mexico Labor Inspections

By Fernanda Magallanes and Esteban Gómez Aguado

Mexico’s recent reforms with respect to tax and labor matters, which began in 2019, have led to an increase in labor inspections and resulted in the imposition of hefty fines. The fines imposed for alleged non-compliance in labor and social security matters are calculated based on the Unit of Measurement and Update (“UMA”). The fines for violations in labor matters range from 50 to 5,000 times the daily value of the UMA, depending on the violation, which is approximately between MX$4,481.00 and MX$448,100.00 Pesos (US$224.00 and US$22,405.00 Dollars at an approximate exchange rate of MX$20.00 Pesos per Dollar). The fines to be imposed resulting from inspections conducted by the Mexican Ministry of Labor and Social Welfare (“STPS”) will be enforced … read more


February 23, 2021

COVID-19 as an Occupational Illness under Mexican Law

By Esteban Gómez Aguado and Daniel Ramírez

In a December 15, 2020 session of the Technical Council of the Mexican Social Security Institute (“IMSS”), the Council issued decree number ACDO.AS2.HCT.151220/340.P.DPES  authorizing the Mexican Department of Economic and Social Benefits “…to implement a proactive assessment strategy as to the work-related risks of employees of related companies who died or were left with lingering symptoms from serious cases of COVID-19, during the (pandemic) emergency period…” (the “Strategy”).  The Strategy consists of an initiative by IMSS’ institutional services to specify the actions and criteria to be considered in classifying COVID-19 cases as an occupational illness.   The Strategy implements criteria to “prequalify” serious cases, those being cases with lingering symptoms and those that resulted in death due to COVID-19.  Both … read more


December 8, 2020

Foreign Employees – Return of Investments in AFORE Retirement Funds

By Adrián Salgado

On November 13, 2020, the Plenary Court on Labor Matters of the First Circuit issued a ruling in contradiction of ruling number PC.I.L. J/67 L (10a.) entitled: “Foreign employees. Such are entitled to the return of the accumulated funds in their individual Retirement Fund Administrator (AFORE) accounts, as well as contributions to the housing subaccount fund when they permanently return to their country of origin, and without being subject to the requirements otherwise set forth in the law.” In its ruling, the court held that the funds corresponding to the retirement subaccounts, advanced age and old age unemployment funds, as well as housing funds, must be paid to foreign employees who permanently return to reside in their country of origin, … read more


October 1, 2020

Validation of Mexican Collective Bargaining Agreements during the COVID-19 Pandemic

By Pablo Sáenz and Fernanda Magallanes

As a result of the 2019 Mexican Labor Law reform and the signing of the USMCA, the Protocol for Validating Existing Collective Bargaining Agreements, which was published in the Official Journal of the Federation on July 31, 2019 (“Protocol”), entered into force on August 1, 2019. Based on such change, all unions in Mexico must validate their collective bargaining agreements within a maximum term of four years, which ends on May 1, 2023. The validation process involves unions consulting with their members and having them vote on whether to approve the contents of their collective bargaining agreement. It is important to note that wages under such collective bargaining agreements are reviewed on an annual basis, while the overall terms of … read more


August 17, 2020

Compliance with Guidelines for Reopening Operations and for Temporary Remote Work

By Pablo Sáenz and Fernanda Magallanes

As a result of the COVID-19 pandemic, Mexican companies that i) are deemed essential, ii) are deemed to be non-essential but are and currently undergoing a reopening process, and iii) those that due to the nature of their work have employees working remotely, must implement and maintain specific written protocols and policies in accordance with federal and local guidelines requiring numerous measures to be taken to ensure a safe return to work, and if applicable, to regulate temporary remote work. In addition to maintaining appropriate protocols and policies, companies must also maintain certain documentation such as logbooks, questionnaires, records of the delivery of personal protective equipment, signage, communications, and training records, among others. In the event of a workplace inspection, … read more


March 31, 2020

Obesity According to Official Mexican Standards

On March 24, 2020, the Mexican Department of Health published a decree setting forth the preventive measures to be implemented to mitigate and control health risks relating to COVID-19, (the “Decree”). The Decree states that obese persons should avoid going to the workplace. Obesity constitutes a chronic pathology characterized by an increase in adipose tissue, which puts someone at risk not only of a higher mortality rate, but also of a higher rate of comorbidity. Such risks correlate to the severity of a person’s obesity (the higher the Body Mass Index “BMI”, the more complications are likely). Although the World Health Organization “WHO” defines obesity as a risk factor, obesity is identified as an illness in Official Mexican Standard NOM-008-SSA3-2017. … read more


March 28, 2020

Department of Economy

On March 23, 2020, official notice number 414.2020.654 dated March 20, 2020, was published on the webpage www.snice.gob.mx, pursuant to which the Department of Economy announced various measures to remotely maintain foreign trade transactions operational. In summary, the following was announced by means of said official letter: The electronic program “Ventanilla Única” will continue to operate in the regular manner. For IMMEX/PROSEC transactions that require submission of supplementary information, it must be sent to the following e-mail address: dgce.tramitesc@economia.gob.mx. With respect to applications for expansion of sensitive goods and subsequent IMMEX expansions, the Department of Economy exempts the requirement for ratification of such by an authorized public accountant. E-mail addresses were provided for use in connection with any and all … read more


March 28, 2020

Paid Leave for Certain Groups

On March 24, 2020 the Mexican government issued a decree that requires employers to give certain groups of employees paid leave with benefits, effective as of such time and through April 19, 2020.  The following are the high-risk groups of employees listed in the decree: Employees who are over age 65. Women who are pregnant or nursing. Employees with a disability.  Unfortunately, the decree does not define disability. Employees with chronic diseases such as hypertension, pulmonary disease, kidney disease, lupus, cancer, diabetes, heart disease, liver or metabolic disease, and obesity. Employees who take medication that suppresses the immune system. The decree does not declare a sanitary emergency, and, as a result, there is significant discussion regarding the scope of the … read more