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Federal Labor Law - Ley Federal del Trabajo
COMPLETE AND UP TO DATE WITH ALL REFORMS
 

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OUR VERSION IS UP TO DATE WITH ALL REFORMS - REFORM MAY 1, 2019, JUNE 4, 2019 and JULY 2, 2019

 

 

Major Labor Law Reforms
Published DOF on May 1, 2019, new reform June 4, 2019, JULY 2, 2019

On May 1, 2019 (Labor day) - a Decree was published in the DOF with major reforms - more than 200 pages of reforms.

In addition to the updated version of the Law, because the reforms take effect over a period of 4 years, in addition to the Law we are providing another document with a side by side comparison of the old law with the new reforms so that you can view the changes that have been made. The price for the new version of the Law is $120.00 USD - if you are in Mexico the price is plus IVA.

THESE MAJOR REFORMS CALL FOR:

·         The elimination of the Juntas de Conciliación y Arbitraje

·         The establishment of Conciliation and Labor Registration Centers

·         The establishment of Federal and State Labor Courts

·         New union procedures – elimination of white unions

·         Social Security for Domestic workers

·         Discrimination – sexual harassment

·         Health and Safety – higher fines

This reform requires an obligatory conciliation hearing between the employer and worker.

If the dispute is not resolved, then the Conciliation Center will issue a document that says an agreement cannot be reached.

TIMETABLE FOR THE REFORM TO TAKE EFFECT

      A series of changes will be made over 4 years

      Federal and State Centers for Conciliation and Labor Registration (Centro Federal de Conciliación y Registro Laboral) 

      Federal and State Labor Courts (Tribunales Laborales)

      Federal Center for Conciliation and Labor Registration (Centro Federal de Conciliación y Registro Laboral)

      Within 6 months the Federal Congress must issue the Organic Law of the Federal Center for Conciliation and Labor Registration

      Within 2 years from May 2, 2019 the Federal Centers for Conciliation and Labor Registration will initiate their functions  to register Unions and Union contracts. Protocol to verify collective labor contracts

      State Conciliation Centers  and State Labor Courts within 3 years

      The Conciliation Centers must initiate operations in every State on the same date as the State Labor Courts.

      The Federal Conciliation Center and the Federal Courts will initiate functions within 4 years

The Conciliation and Labor Registration Centers under the STPS

      Conciliation

      Register Unions

      Register Union Contracts

      Register Internal Labor Regulation

      Union contracts will be reviewed at least once during the 4 years after this Decree takes effect

      If they do not have a majority support, they will be cancelled

      Until the Conciliation and Labor Registration centers begin functioning, the STPS will establish a protocol to verify the Union requirements within 3 months after this Decree takes effect   (11th transitional article)

 

Federal and State Labor Courts

      The Courts will be administered and integrated by the Judicial Branch of government

      The Court procedures will be transparent, open to the public

      Video recorded

      Presided over by a Judge

      Both sides represented by attorneys

      Evidence rules favor the workers

      A lawsuit can be accepted even when the worker does not know the name of the employer

      Workers can be provided with an attorney

 

Domestic Workers – Workers in the Home

      Change of name from Domestic Workers to Home  Workers

      (Trabajadores Domésticos - Trabajadores del Hogar)

      Article 337, IV requires enrolling Home workers in Social Security – Social Security has a new obligatory program for Home workers

       

Discrimination

      New Employer obligation added to Article 132,

      To implement a protocol to prevent discrimination based on gender and prevention of sexual harassment

         (Acoso sexual – Hostigamiento Sexual)

 

HEALTH AND SAFETY

A reform to Art 527 of the Labor Law gives the Federal STPS  authority over Health and Safety compliance and training in the workplace

A reform to Article 994, V. A fine of 250 to 5000 UMA for lack of a Health and Safety program.

The UMA = 84.49 pesos

($21,122.50 to $422,450.00 pesos)

 

THE MEXICAN FEDERAL LABOR LAW

   
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PRICE IN USD  - NO IVA

 

IF YOU ARE IN MEXICO

PRICES IN PESOS - IVA INCLUDED

 

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MAJOR REFORMS PUBLISHED DEC. 1, 2012

There have been many attempts to reform the Labor Law and bring it up to date. This is a highly charged political issue in Mexico, which leads one to ask.

How has this reform been made possible after so many attempts?

Helping to make possible this reform was another reform on August 9, 2012 to Article 71, section I of the Political Constitution of the United Mexican States.

All new laws in Mexico go through a creation process before becoming law which is established in the Constitution. This process is detailed in the aforementioned Article 71 and consists of 5 stages.

a) INITIATIVE: An initiative can be presented by the President, the Senate, Congress (Diputados), the legislators of the States, as well as by Citizens, and can be presented to either of the Chambers (Senate or Diputados) and that Chamber will be referred to as the "Camara de Origen" or the Chamber of Origin.
b) DISCUSSION: The Chamber of Origin passes the Project to the "Camara Revisora" or the Reviewing Chamber (the other Chamber of Congress) for its discussion.
c) APPROVAL AND SANCTION: Once the Initiative is approved by both Chambers it is sent to the President who can reject and send it back or approve it and send it to be published in the DOF - Diario de la Federación (Daily Periodical of the Federation).  The President has 10 days to respond. If he does not respond, the initiative is considered as approved and the President of the Chamber of Origin will order the publication within the following 10 calendar days of the Initiative in the DOF.
d) PUBLICATION AND EFFECTIVE PERIOD: The Initiative is published in the DOF and the transitional articles set the date it will take effect. (This reform takes effect the following day, December 1, 2012)  

The reform to Article 71 incorporated a new fast track for Presidential Initiatives. This "Iniciativa de Trámite Preferente" (Process of Initiative with preference) gives the President the authority to  introduce to the first session of Congress up to two initiatives of Preference. These must be discussed and voted on in a maximum period of 30 calendar days.

President Calderón presented an Initiative of Preference for a reform of the Federal Labor Law to the Chamber of Diputados which approved it in part and sent it to the Senate which also approved it on November 13, 2012 and sent it to the President for publication. The publication of the reforms in the DOF is the last official act as outgoing President. The new President took the oath of office on December 1, 2012.

This reform is a major overhaul or updating of the Federal Labor Law, some of the reforms merely update the Labor Law with the actual practice.

SUMMARY OF THE REFORMS TO THE FEDERAL LABOR LAW

BY Lic. Glenn Louis McBride -

1. The incorporation of the idea of "decent work" promoted by the International Labor Organization (The UN specialized agency which seeks the promotion of social justice and internationally recognized human and labor rights.) which among others are the respect for the human dignity of the worker, the no discrimination for reasons of gender, sexual preference, disability, race or religion, access to Social Security, an appropriate salary, continuous training and qualification for increasing productivity, occupational health and safety, freedom of association, union autonomy, the right to strike, collective bargaining.

2. New types and ideas for the contracting of workers, test periods, initial qualification contracts, seasonal work for the purpose of attending to the circumstances that prevail in the modern global market. These ideas are formalized in the Labor law with the idea of bringing, principally women and young people, into the formal work market. These new types of contracting establish the rules and time non-renewable time periods for the test periods and initial qualification contracts so that they cannot be applied on more than one occasion to a worker.

3. The regulation of Sub-contracting and Outsourcing, for the purpose of avoiding compliance to the obligations of an employer. This firmly establishes the legal responsibility for all parties involved in this type of employment.

4. The defining the employment of minors under 14 years old as a crime outside of the family circle.

5. The granting of greater protection and legal security to Mexicans that are going to work outs of Mexico. This sets the stage for intergovernmental cooperation and regulation of Guest worker programs that involve Mexican workers.

6. The establishment of a mechanism for communication a notice of the rescission of a labor contract by the Employer to the Worker, for the purpose of avoiding the necessity of proving in court that the worker refused to receive a notice of rescission.

7. The inclusion of a new cause for rescission of a labor contract without responsibility for the worker, when the employer requires the employee to execute acts, conduct or behavior that infringes on his rights or dignity.

8. The reform reinforces the rights of Women workers, through specific measures:

  • Expressly prohibits discrimination for gender.
  • Prohibits sexual harassment and punishes those involved in such conduct and defines greater responsibility for the employer.
  • Prohibits the practice of requiring a medical certificate (to verify the worker is not pregnant)
  • Permits women greater leeway to distribute the 12 weeks maternity leave.
  • Mandates 10 days paid paternity leave for fathers
  • Mandates 6 weeks paid maternity leave for adoptive mothers

9. The reform permits payment by bank cards, debit card, transfers or any other electronic method. This updates the law to conform with the actual practice. The labor law formerly required payment in cash.

10. The reform establishes a limit on the back pay period, the period between the dismissal of the worker and the conclusion of the judicial process,  in order to combat the practice of prolonging labor disputes. It now will be limited to one year.

11. The reform promotes the multi or cross training of workers. This permits more leeway to train a worker for many different tasks and removes the barriers for moving labor to where it is needed in a company.

12. The reform establishes the obligation of the employer to affiliate with FONACOT. The reform requires employers to affiliate workers with FONACOT - Fondo Nacional para el Consumo de los Trabajadores (National Fund for the Workers as Consumers)

13. The reform requires employers to coordinate with labor authorities for contingencies and emergencies.

14. The reform brings the law in line with Supreme Court jurisprudence on the subject of Profit sharing, for the exemption of employers that have been granted a suspension from the Junta de Conciliación (Board of Concliation and Arbitration) for economic reasons.

15. The reform requires adapting workplaces with more than 50 employees for handicapped access.

16. The reform reinforces the provisions that regulate training of workers, with new requirements for evaluating workers and linking training to salary.

17. The reform allows employers to give preference to worker productivity and ability as the primary criteria for advancement and promotion instead of seniority.

18. The reform requires better labor conditions for field workers, with a registration of temporary or seasonal workers, better documentation from the employer to the worker, better benefits, conditions during working hours, and interpreters for workers who do not speak Spanish.

19. The reform improves the conditions of domestic employees.

20. The reform includes in Title Six of the Law a new Chapter for regulating MINE WORKERS.

21. The reform recognizes Telecommuting or telework, using technology for workers working from home.

22. The reform details the free, direct and secret voting on union elections.

23. The reform reinforces the workers' rights to the review the rendering of accounts of the Unions.

24. The reform permits Unions to comply with their obligations electronically.

25. The reform includes express provisions to consider the Union records as Public Information.

26. The reform gives the labor authorities to require the unions to provide all the documents requested in the application process or the application will be voided.

27. The reform eliminates the "cláusula de exclusión por separación" in many of the Union contracts that requires the dismissal of employees that are not Union members. This brings the law in line with Supreme court rulings on the subject.

28. The reform denies a Union to place a company on strike when a strike is already in place.

29. The reform increases the amount of indemnification for the death of a worker from a work accident. The law currently requires a payment of 650 days wages to up to 5,000 days salary depending on the accident and the responsibility of the employer.

30. The reform reinforces health and safety measures in the workplace. It gives greater authority for the Health and Safety inspectors to order the immediate closure of a workplace in case of imminent danger to health, life or the integrity of persons.

31. The reform facilitates the updating of the Table of Occupational Illnesses and and the Valuation of permanent disabilities.

32. The reform extends the jurisdiction of Federal authorities through a new interpretation of "Federal Concession" to include activities of a company under Federal authorization or permit.

33. The reform reinforces the powers and objectives of the National Employment Service for the purpose of proposing and implementing mechanisms to link professional formation with regional priorities.

34. The reform eliminates the Federal Juntas de Conciliación y Arbitraje at the State level. This has the effect of updating the Law with the actual situation in Mexico and eliminates the duplication on the part of the State STPS and Federal STPS.

35. The reform requires a greater incorporation of the concept "conciliation" into the process. During the entire procedure, from beginning to end, the Juntas will attempt to lead the parties to conciliation of conflicts.

36. The reform requires greater educational preparation for public servants involved in the system. It requires a greater educational level for functionaries and parties involved in defense and prosecution.

37. The reform will require a greater degree of professionalism in the labor authorities as well the parties involved. This will require that all the parties involved in the defense of the worker and the employer be licensed Attorneys.

38. The reform will permit the greater use of technology in the process in order to improve the system.

39. This reform modifies the structure of the first hearing in the ordinary procedure to: conciliation, lawsuit, and exceptions and a second hearing for the presentation and admission of evidence.

40. The reform establishes a summary procedure in order to grant social security benefits, Infonavit, and the retirement benefits (AFORE).

41. The reform provides increases in the amounts of fines for notorious delaying tactics such as the "Recurso de Revision" (Review Recourse) or the Complaints dealing with acts of execution (or absence of them).

42. The reform addresses the situation when a strike lasts longer than 60 days with respect to employers that render public services.

43. The reform establishes a relief for third parties to recover possession of their property in the case of a prolonged strike.

44. The reform establishes an additional cause for declaring a strike non existing when the Union does not comply with their own statutes for declaring a strike.

45. The reform establishes a cause for denying the placement on strike when the violations of said contract are not clearly or fully detailed and the form of repairing the violations is not detailed.

46. The reform combats the so called "Contratos de Protección" (protective contracts). more on this to come.

47. The reform establishes new rules for the processing of lawsuits (demandas) for Collective labor contracts.  The object being to assure the legitimate representation of the workers.

48. The reform provides that in the collective conflicts of an economic nature, that only a strike suspends the process.

49. The reform details the free, direct and secret vote and recount of votes in strikes.

50. The reform increases the amounts of fines for those that infringe the Federal Labor law that can reach 5,000 times the current general minimum wage in the Federal District.

I am working on a complete translation of this reform to over 400 articles of the Federal Labor law and it will be available soon. If you wish to be notified, email me.

Lic. Glenn Louis McBride
glenn@mexicanlaws.com 
Mexican Attorney 
MEXICANLAWS S.A. DE C.V 

Derechos Reservados © 2012 Lic Glenn Louis McBride Withenshaw

 

 
 
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