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Highlights Of the Labor Reform ______________________________

Highlights Of the Labor Reform ______________________________. What is happening?. President of Mexico submitted a bill to amend the Federal Labor Law to the Congress on September 1 st. . The Bill was approved by the Congress (with votes of the PRI and PAN) and was sent to the Senate.

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Highlights Of the Labor Reform ______________________________

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  1. Highlights Of the Labor Reform ______________________________

  2. What is happening? • 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.

  3. 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.

  4. Highlights • 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.

  5. 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.

  6. 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.

  7. Highlights • The obligation to register the company with the FONACOT was included. • 3 day paternity-leave.

  8. What now? • 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.

  9. Gracias. Leobardo Tenorio-Malof ltenorio@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) 634-2808 US (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.

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