However, the rights promised by the constitution remained mere promises until 1931, when the government enacted the Ley Federal de Trabajo, or Federal Labor Code. The LFT established the Juntas de Conciliación y Arbitraje (Conciliation and Arbitration Tribunals), composed of representatives of the government, employers and trade unions. A lawsuit may be accepted even if the employee does not know the name of the employer Within 2 years of May 2, 2019, the Federal Conciliation and Labor Registration Centers will begin their functions of registering unions and union contracts. Protocol for the revision of collective agreements Before a labour law complaint can be filed, the parties must participate in mandatory conciliation. Employers who do not participate will be subject to a fine. These new requirements are likely to increase the number of labour disputes as employees begin to understand their rights and deal with grievances quickly. Mexico has fundamentally overhauled its labour laws, enacting laws prohibiting employer interference in workers` rights, protecting workers` right to join or not join a union, and requiring unions to obtain workers` support. To implement these changes, Mexico needs to create new courts, a new federal agency, and even more regulations in a short period of time. (For more details on the legislation, see Reviewing Mexico`s Federal Labor Laws: What U.S. Employers Need to Know.) Just over a month ago, the FLL passed a new law banning outsourcing to limit companies` reliance on temporary workers. Under the new rules, subcontracting can only be carried out for specialised tasks that are not part of the `main economic activity` of the company receiving the services. If you are based in Mexico and decide to outsource your recruitment processes, recruitment agencies can only help you recruit and train candidates.
The company receiving the services must be the one that hires. The adoption of the law is only the beginning of labour market reform in Mexico. The new Federal Centre for Conciliation and Labour Register and the labour courts need more guidance, staff, training, administration and, above all, money. Changes to Mexican law are likely to result in stronger and more meaningful independent unionization than Mexican employers have experienced in the past. Companies that wish to retain the flexibility to adapt to the changing global marketplace should evaluate their labour relations strategy and seek legal advice on how to comply with Mexico`s new labour laws. To attract skilled workers from the manufacturing sector, employers should expect to offer wages that are more competitive than minimum wage. However, this number varies by location. Workers closer to the northern border and in some metropolitan areas with manufacturing centres will expect a higher wage rate. Employers new to Mexico will find nuanced differences between Mexican labor laws and U.S., Canadian, European or Chinese labor laws. These small details can ultimately result in hefty fines for employers who make a misstep. Like the United States and most other developed countries, Mexico enforces labor laws against companies, including foreign investors. In fact, the U.S.
Department of Labor continues to fund resources and training for labor inspectors in Mexico to ensure compliance with the USMCA. 37. The reform requires a higher level of professionalism on the part of labour authorities and stakeholders. This requires that all parties involved in the defense of the employee and employer be licensed lawyers. Trade unions are recognized by federal law and serve to protect the common interests of the workforce. All union decisions are discussed with the employer. However, the employer is the sole decision-maker for all decisions. 26. The reform gives labour authorities the possibility to require trade unions to produce all documents requested as part of the application process, failing which the application will be declared invalid. For a more in-depth look at Mexican labor law, download our free eBook Your Guide to Understanding Mexican Labor Law or contact Tetakawi today.
U.S. companies operating in Mexico through a Mexican subsidiary or employing personnel residing in Mexico must comply with Mexican labor laws. Tags: Labour law in Mexico | Labour law in Mexico | Mexican labour law| Mexican labour law| Mexican regulations | Regulation in Mexico 18.