Social Security and Labor Amendment

in Jun 12, 2019

To: Clients and Friends

On June 4, 2019 a Decree was published in the Official Gazette of the Federation adding various provisions to the Social Security Law and the Federal Labor Law. Such amendment entered into force on June 5, 2019.

Section 140 Bis was added to the Social Security Law, providing that insured employees with children up to the sixteen years who are diagnosed with cancer by the Mexican Social Security Institute (“IMSS”, for its acronym in Spanish), may obtain a leave of absence from work to take care of them.

Such leave of absence will entitle employees to periods from one to twenty-eight days of leave, which may be re-granted as many times as required, during a maximum term of three years, without exceeding a total of 364 days.

The leave of absence will cease when (i) the minor does not require hospitalization or medical rest; (ii) the minor dies; (iii) turns sixteen years old; or (iv) the employee is hired by a new employer.

Employees with at least 52 weeks of immediate contributions prior to the start of the leave, will be granted a subsidy equivalent to 60% of the last daily salary recorded by the employer, which will be covered by the IMSS.

In line with the above, Section 42 of the Federal Labor Law was amended to include the abovementioned leave as a cause for temporary suspension of the employment relationship; therefore, the obligation to provide services and pay salaries are suspended.

Section 132 of the Federal Labor Law is added to provide the obligation of the employer to allow employees to obtain the leave issued by the IMSS.

juan.tejedo@gmt.mx

a.garciamingo@gmt.mx

regina.delafuente@gmt.mx

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