Labor and Employment

Representatives from the Mexican Federal Government, Business Sector and Union Groups conferred on April 5, 2021 in an attempt to agree on the terms of new pending federal legislation governing outsourcing in Mexico.

The parties reached the following agreements in their discussions:

1. In general, outsourcing of personnel will be prohibited, including: (i) the hiring

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

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

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

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

On May 15, 2020, the Mexican Department of Health published a decree detailing the process for reopening the construction, mining, and transportation equipment manufacturing industries. Said decree amends a similar decree published in the Official Journal of the Federation the previous day.The target date for reopening these industries remains June 1, 2020. To be able