Employment & Benefits, Mexico updates

Constitutional reform: labour justice, freedom of association and collective bargaining
  • Mexico
  • March 15 2017

The decree amending several provisions of the Constitution with regard to labour justice, freedom of association and collective bargaining was recently published in the Federal Official Gazette. Key amendments include the abolishment of the conciliation and arbitration boards and the establishment of a new federal agency which will be responsible for the registration of collective bargaining agreements and trade union organisations, as well as all related administrative processes.

Fixed-term employment agreements under Federal Labour Law
  • Mexico
  • January 18 2017

Under the Federal Labour Law, fixed-term employment agreements can be validly entered into only when the temporary and extraordinary nature of a job requires it or an employer must temporarily replace an employee. Failure to apply fixed-term agreements in accordance with the law may result in a temporary employment relationship being classified as an employment relationship for an indefinite term and a finding that its termination was unjustified.

General and professional minimum wages increased
  • Mexico
  • January 11 2017

The National Minimum Wages Commission (CONASAMI) recently published a resolution increasing general and professional minimum wages. CONASAMI first increased the general minimum wage by Ps4, resulting in a rate of Ps77.04 per day, with the objective of gradually and steadily improving the purchasing power of employees who earn the minimum wage. Immediately thereafter, it increased both general and professional minimum wages by 3.9%, resulting in a rate of Ps80.04 per day.

Court issues first precedent regarding employee stock option plans
  • Mexico
  • July 13 2016

The Seventh Collegiate Court in Labour Matters of the First Circuit recently ruled that stock options established in an individual employment agreement form part of the employee's salary and must therefore be taken into account when calculating the employee's severance pay. Employers should thus ensure that employee stock option plans clearly indicate that they are an extraordinary item of compensation excluded from such calculation.

President proposes employment and labour law amendments
  • Mexico
  • June 08 2016

The president recently proposed several amendments to employment and labour law. While the proposed new judicial structure in which collective matters are managed at a federal level is intended to increase Mexico's competitiveness and provide faster solutions for individual employment conflicts, the proposed collective bargaining agreement registration requirements appear to be quite burdensome.

Amendments to Law on the Institute of the National Fund for the Housing of Workers
  • Mexico
  • March 23 2016

A decree was recently published in the Federal Official Gazette which amends the Law on the Institute of the National Fund for the Housing of Workers. The decree introduces the possibility for employers to fulfil the payment and information requirements formulated by the Institute of the National Fund for the Housing of Workers by any means – including by electronic means.

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