Issue 149 September/October 2020

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

October 12, 2020

The State of Nuevo León, Mexico Enacts Important Reform for Commercial Leases Following Declaration of Health and Sanitary Emergency

By Jorge Ojeda

On October 2, 2020, Decree 358 was published in the Official Journal of the State of Nuevo León, adding a second paragraph to article 2326 of the Civil Code for the State of Nuevo León (“CCNL”), which reads as follows: “Art. 2326.- If the use of the property is impeded only in part, the tenant may request a partial reduction in rent, based on the opinion of experts, unless the parties elect to terminate the contract, if the impediment lasts as long as the time set forth in the prior article. Tenants of real property conducting commercial activities whose use and enjoyment of such real property was disturbed as a result of the declaration of a civil protection or sanitary … read more

Mexico Adopts Changes to Information that Must Be Submitted to the National Registry of Foreign Investments
By Floriberto Morales

On September 4, 2020, Mexico published a new Decree requiring new forms to be used for requests and notices filed with its National Registry of Foreign Investments (“RNIE” by its initials in Spanish) in the Official Journal of the Federation. The new forms mandate the inclusion of more detailed information be provided in quarterly and in the annual RNIE economic reports. The following are the most significant changes: Important changes to the Quarterly Economic Report Form: • Copies of financial statements, as well as debtors and creditors’ schedules, must now be provided. • A new form called “Geographical destination of the investment or origin of the divestment” is now mandatory. • A “State presence” form requires information regarding the presence … read more