Issue 152 - March-April 2021



April 22, 2021

U.S. Agricultural Producers Address Concern as to Declining Trade with Mexico

By Fernando Schoeneck

On March 22, 2021, twenty-seven of the leading associations of agricultural producers in the United States, including the American Farm Bureau Federation, the American Feed Industry Association and the American Seed Trade Associationsent a letter to the U.S. Department of Agriculture Secretary, Thomas Vilsack and the U.S. Trade Representative, Katherine Tai, addressing their concerns as to the declining U.S.-Mexico food and agricultural trade relationship, urgently requesting their attention to this critical issue.  Below is a selection of leading concerns in such trade relationship as highlighted in the letter: 1.         Glyphosate/GM Corn Ban.  The Mexican Presidential decree published in the Official Journal of the Federation on December 31, 2020 (the “Decree”) states the intent and course of action to be taken … read more


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


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


Mexico Makes Changes to Its Federal Judiciary
By Jorge Sánchez Cubillo and Eduardo Parroquín

A Decree published in the Official Journal of the Federation on March 11, 2021 amends and adds several provisions to the Mexican Constitution regarding the structure, functions and organization of the Mexican Federal Judiciary, as well as to the rules for handling certain constitutional cases. Such amendments were proposed by the Chief Justice of the National Supreme Court of Justice (“SCJN”) and presented to Congress by the Mexican President. The following are the most relevant amendments: 1.         Collegiate Courts of Appeal to Replace the Unitary Circuit Courts. Under the new system, federal appellate courts (tribunales unitarios de circuito) will go from one presiding Magistrate to three Magistrates, each retaining their existing constitutional authority. 2.         Regional Board Courts to Replace Circuit … read more


Mexico Makes Changes to Its Federal Judiciary

A Decree published in the Official Journal of the Federation on March 11, 2021 amends and adds several provisions to the Mexican Constitution regarding the structure, functions and organization of the Mexican Federal Judiciary, as well as to the rules for handling certain constitutional cases. Such amendments were proposed by the Chief Justice of the National Supreme Court of Justice (“SCJN”) and presented to Congress by the Mexican President. The following are the most relevant amendments: 1.         Collegiate Courts of Appeal to Replace the Unitary Circuit Courts. Under the new system, federal appellate courts (tribunales unitarios de circuito) will go from one presiding Magistrate to three Magistrates, each retaining their existing constitutional authority. 2.         Regional Board Courts to Replace Circuit … read more


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