Mexico Labor Reform 2020 (Changes)



On summary, the main changes to the Federal Labor Law (LFT) that concern the companies and that are in forces starting May 2, 2019 are the following:

Outsourcing
Regarding to outsourcing or subcontracting they added on article 5, subsection XIV, the following:
·       XIV. Cover up an employment relationship with simulated legal acts to avoid labor and/or social security obligations.
So, whether is written or verbal, any stipulation that establishes or pretends to simulate a working relationship will not produce any legal effect, nor will it prevent the enjoyment and exercise or rights.

One modality, in terms of discounts on salaries provided for in article 110, was modified and now states that:


Article 110. (LFT) Discounts on employee´s salaries, are strictly prohibited unless the following situation with its requirements.
VI. Payments of ordinary unions fees provided on the union bylaws.
The employees could express in writing his or her for the union fees to no be applied in which case the employer should not discount it. 

The possibility that employee does not agree with a discount for union fees. In addition, companies must be extremely careful that there is not interference in issues that have to do with union life, including quotes

Employer Obligations
Another aspect in relations to employer obligations provided for in article 132, section XXX, is the one that talks about the obligations of the employers who have a Collective Labor Agreement. It establishes obligations to give their employees a free of charge, printed copy of the initial collective bargaining agreement or its revision.

Likewise, the reform imposed other obligations that must be implemented in the companies in agreements and in conjunction with the employee, such as: a protocol to prevent discrimination on the grounds of gender and attention to cases of violence, harassment or sexual harassment, as well as to eradicate forced and child labor.

New Labor Justice System 
As of May 2,2019, the rules regarding the new labor justice system come onto force, in which the labor boards disappear gradually and the new lawsuits that are generated at the time must be resolved by the Local or Federal Judicial Power (Judges), as appropriate according to the labor competency rules.

The new law imposes on the Federal and Local Boards, as appropriate, the obligation to continue handling all individual, collective and registration matters. That is, until the Federal and Local Courts (Judges) come into office. In a few words, for procedural purposes to this date, it can be said the procedural labor reform does not apply yet.




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