The COVID-19 pandemic is causing a steep drop in revenues for Mexican companies during fiscal year 2020, which will also result in decreased net income and, in many cases, negative cash balances. Mexican companies will need to keep a close eye on their cash flow and analyze strategies and options to improve their cash balances.
Validation of Mexican Collective Bargaining Agreements during the COVID-19 Pandemic
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
Mexico Adopts Changes to Information that Must Be Submitted to the National Registry of Foreign Investments
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
The State of Nuevo León, Mexico Enacts Important Reform for Commercial Leases Following Declaration of Health and Sanitary Emergency
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
Compliance with Guidelines for Reopening Operations and for Temporary Remote Work
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
Mexico Announces Phases to Reopen Construction, Mining, and Transportation Equipment Manufacturing Industries
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
Mexico Announces Phases to Reopen Construction, Mining, and Transportation Equipment Manufacturing Industries
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
Proposed Reopening of North American Automotive Sector
Conferring amid the pandemic caused by COVID-19, on April 24, 2020 Mexico’s Departments of Foreign Affairs, Treasury and Public Credit, Labor and Social Welfare, Health, and the Social Security Mexican Institute released a joint news release announcing details on proposed plans to reopen the North American automotive regional sector.
The news release states that the
Health Emergency Decrees Issued on April 13, 2020
In response to the COVID-19 Health Emergency, on April 13, 2020, the Mexican Social Security Institute (“IMSS” by its acronym in Spanish), the Plenary of the Council of the Federal Judiciary and the General Plenary of the Superior Chamber of the Federal Court of Administrative Justice, issued various publications in compliance with the health standards
PRODECON Decree Relating to COVID-19
- In-person meetings with the public are