10 keys to understanding labor reform

At Talent Investment we are interested in the future and changes in the different changes in labor legislation and their implications for our clients and talents, for which, we summarize in 10 points the keys that we consider help us understand the recently approved new Mexican labor reform :

  1.   Regulates domestic workers

It is the employer’s obligation to register the working party with the Mexican Social Security Institute (IMSS) and pay the corresponding fees in accordance with the applicable regulations on the matter.

  1.   Disappearance of the conciliation boards

Before, the conflicts between the employer and the workers were resolved in the Conciliation and Arbitration Boards, which were replaced by the labor courts that depend on the Federal Judicial Branch. These plan to make conflict resolution more effective.

  1.   Creation of the National Conciliation Center

It is created to resolve labor disputes in the first instance. Here, the parties are reconciled to solve a problem and if no agreement is reached, the case will be sent to the courts.

  1.   Union democracy

The right to freedom of association is recognized, as well as freedom of association, it also establishes procedures for the election of directors and union sections with an exercise of personal, direct, free and secret vote, and with a perspective of gender equality, where there is representation of women in union bodies.

  1.   Fight white unions

A union may lose its union registration if its leaders, proxies or legal representatives commit acts of extortion against employers, demanding payment in cash or in kind.

Among the prohibitions for unions are:

  • Participate in tax evasion schemes or breach of employer obligations.
  • Exercise acts of violence or against its members, the employer or representatives.
  • Participate in simulation events; so-called white unions.
  • To state that voting or consultation of workers is indicated without having been carried out.
  • Hinder the participation of workers in the procedures for choosing their union officers, commit acts of extortion or obtain handouts from the employer.
  1.   Open the door to more unions

Workers will be able to organize into unions the way they want.

  1.   Outsourcing is not touched

In addition to leaving out farm workers and support for this sector.

  1.   Gender equality

Respect is required for the liberties and dignity of the person who lends it. In addition, it recognizes the equality of men and women before the law and establishes that work must be carried out in conditions that ensure a decent life and health for workers and their dependent relatives.

  1.   Prohibits undercutting

The labor reform prohibits one of the most common evasion practices by companies: registering the employee with less salary than he receives before the Mexican Social Security Institute (IMSS), known as undercutting.

  1. Collective contracts

Employers will be obliged to give their workers, free of charge, a printed copy of the initial collective labor contract or its revision, within 15 days after it is deposited with the Federal Center for Conciliation and Labor Registration.


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