HighlightsOf the

Labor Reform______________________________

• President of Mexico submitted a bill to amend the Federal Labor Law to the Congress on September 1st..

• The Bill was approved by the Congress (with votes of the PRI and PAN) and was sent to the Senate.

• The Senate has 30 days (which expire on October 26st. to pass the Bill, revise it and return it to the Congress for further analysis and/or, in its case, request the Executive Branch to publish it.

What is happening?

• Is it a real substantive labor reform?

• Without changes to the unions, there cannot be a real reform.– Transparency.– Secret vote.– Exclusion clause.

• The Bill basically regulates many current practices.

What is happening?

• New types of labor agreements:– 30-day contract (180 for administrative personnel).– Traineeships (3 months/6 months for administrative

personnel).– Seasonal.

• New rules for companies that hire outsourcing companies.– Fines and penalties for those outsourcings that are,

essentially, established to avoid paying taxes.

Highlights

• Definitions of Harassment (bullying) and Sexual Harassment are included, as well as Productivity.

• Back-wages, in the event of a dispute, are being capped.

• Productivity is know the basis for promotions.

Highlights

• Hourly rate. The Bill proposes that an employee be paid by the hour, provided, however, that the number of hours does not exceed the maximum legal work-shift and the wage to be paid to the employee is not lower than the wage corresponding to such work-shift.

• Additional causes for justified termination:– Commits immoral acts, or sexually harasses any

person in the work place.

Highlights

• The obligation to register the company with the FONACOT was included.

• 3 day paternity-leave.

Highlights

• It is only a bill. • There is real chances that the Senate does not

approve the Bill because the PRI and the PAN are not in agreement, among others, with:– Outsourcing.– Unions.– Hourly wage.

• In the Senate, the senators of the left, will have the decisive votes.

What now?

Gracias.

Leobardo Tenorio-Malofltenorio@tplegal.net

Blvd. Sanchez Taboada No. 10488-701, Torre Platino, Zona Rio Tijuana, Tijuana, B.C. 22010. 641 E. San Ysidro Blvd. Suite B3-808, San Ysidro, CA 92173. MX (664) 634-2808US (619) 270-1120

TP Legal S.C. es miembro de PROLEGAL, una alianza profesional con oficinas en las ciudades de Monterrey, Chihuahua, Guadalajara, Cancún y Ciudad de México.