Amendment to the Federal Labor Law

in Jun 12, 2019

To:  Clients and Friends

Background

On February 24, 2017, a decree was published by means of which Articles 107 and 123 of the Mexican Constitution were amended.

In order to comply with the amendments made to the Constitution, labor legislation in Mexico had to be amended.

On April 29, 2019 the Mexican Senate approved the decree which amends the Federal Labor Law and such amendment was published on May 1, 2019 in the Federal Official Gazette in Mexico.

Main Changes

1.              Collective Bargaining Agreements and Unions.

Union leaders, union committees and negotiations of collective bargaining agreements will be decided through free, secret, personal and direct vote of the union members. Union leaders, union committees and negotiations of collective bargaining agreements will be decided through free, secret, personal and direct vote of the union members.

Unions leaderships will have to provide full and detailed information on fund, use and management.

Employers will have to provide employees with a printed copy of the collective bargaining agreement within 15 days following its filing.

Employees may refuse deductions of union dues.

In order to register a collective bargaining agreement or the revision of a collective bargaining agreement, unions will have to attach a Proof of Representativeness issued by the Centro de Conciliación y Registro Laboral (a new labor authority where all collective bargaining agreements must be registered).

2.              Procedural Changes.

Currently, labor courts are administrative bodies which belong to the executive branch. With the amendment, labor courts will now belong to the judiciary branch as formal Courts.

A conciliation pre-trail stage is added and mandatory. The parties will present at the Conciliation Hearing, settlement proposals. If an agreement is reached, the parties will execute a settlement agreement.  Otherwise, the complaint may start a trial with the corresponding Court.  Only on exceptional cases the trial will begin without the pre-trial stage.

Regarding collective claims, and for the dispute of management and administration of collective bargaining agreements, new rules and procedures are added.  Additionally, salaried employees may not intervene in voting hearings and inquiries regarding the execution or negotiation of collective bargaining agreements.

3.              Employment Relationships in General

Employment agreements must now include the designation of beneficiaries for the payment of salary and accrued benefits in case of death or disappearance of an employee.

Employers must implement an action protocol to prevent discrimination and handle cases of violence, bullying and sexual harassment.  It is required to guarantee a work environment free of discrimination and harassment.

If you have any questions about this Client Alert, please contact:

Juan I. Tejedo Moreira

juan.tejedo@gmt.mx

Alfonso García-Mingo

a.garciamingo@gmt.mx

Regina De la Fuente

regina.delafuente@gmt.mx

Client Alert is published by GarcíaMingo & Tejedo, S.C., as a news reporting service to clients and other friends.  The information contained in this publication should not be construed as legal advice.  Should further analysis or explanation of the subject matter be required, please contact the attorney with whom you normally consult.

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