If you have employees in Mexico, or are considering expansion, there are several new reforms to the labor legislation. Before you start hiring, or to ensure compliance for your employees in Mexico, review the top seven labor reforms that could impact your organization.
- Labor Contracts must be in writing
The labor law in Mexico requires all labor contracts to be in writing. Employers must document the specific details of employment including work hours, wages, benefits, and any other conditions of employment. The requirement helps to ensure transparency and protects employees who may not understand their rights and obligations under the contract.
- Union Contracts must be ratified by workers
Workers must ratify union contracts before the contract goes into effect. This provides workers the opportunity to contribute to terms and conditions of their employment and does not allow union leaders to negotiate contracts without worker input. This new requirement will increase the representation of workers in union decisions and ensure unions work in the best interest of their members.
- New Federal Center for Conciliation and Labor Registry
The new labor laws established this registry to support labor dispute resolution and help regulate unions in Mexico. This institution will be responsible for resolving labor conflicts and promote dialogue with employees and their employers.
- The Right to Strike and Collective Bargaining
The labor law in Mexico recognizes the right to collective bargaining and the right to strike. Workers can organize and negotiate for better working conditions, pay, and benefits. There are also new procedures for resolving labor disputes including mediation and arbitration.
- Transparency and Democratic Processes in Unions
This law requires unions be transparent in decision-making processes and democratic in their internal operations. This will help ensure union leaders are elected through free and fair processes and provide union members with access to information related to union finances and operations. The goal is to increase accountability for union leaders and to ensure each union is working in the best interest of its members.
- Gender Equality and Non-Discrimination in the workplace
Employers must ensure that women and men are treated equally regarding hiring, promotions, and compensation. The new laws prohibit discrimination based on age, religion, sexual orientation, and other factors. These laws aim to promote gender equality and prevent discrimination in the workplace.
- Non-Compliance Penalties
There are penalties for non-compliance for employers who fail to comply with the new requirements. Any employer that violates the laws can face fines, suspension of operations, and potential criminal charges. Employers need to understand and comply with new labor laws to avoid penalties and ensure their employees are being treated fairly.
If you are thinking of expansion, or need assistance with HR compliance in Mexico, talk to our team. We have global consulting experts who can help with in-country compliance, payroll-related questions, and more. Get started and simplify your global HR compliance