Global

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  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/4/2012

Mexico - Labor law changes pending enactment 

October 4: Draft legislative amendments to provisions of Mexico’s federal labor law (Ley Federal del Trabajo) were submitted by the president on 1 September 2012, and then subsequently passed by the Chamber of Deputies and are now pending consideration by the Senate.

Even though the legislative process is on-going, businesses need to be aware of certain points in the legislation that could affect the relationship between companies and their workforce.


Among the measures under consideration are:


  • The “decent work” concept that includes provisions to address employee discrimination, employee access to social security and fair compensation, and continuing employee training
  • For employment of 180 days or more, the possibility to allow for a “trial period” of employment of 30 days, provided that this period is used to verify that the worker satisfies all applicable job requirements, and also separately, the possibility of an “initial training” period of three months
  • Rules concerning seasonal work for fixed and periodic work (that is, intermittent work because the service is not required during the whole week, month, or year) with grounds for termination being the conclusion of the season
  • Remuneration to be a “fair wage”—when the wage is per hour of service rendered, the wage must take into consideration the maximum legal working day; also labor and social security rights are to be satisfied; and the amount of wages is not to be lower than one corresponding to a workday
  • Incorporation of rules for “employment under outsourcing conditions” (i.e., contractor / subcontractor situations)
  • For Mexicans working abroad, certain measures aimed at providing repatriation, housing, and medical service expenses
  • Rules for payment of wages via electronic means
  • Rules for individuals who are entitled to payments of alimony, standards for encouraging employee savings, rules for worker participation in profit-sharing plans, and maternity-leave and paternity-leave provisions
  • Standards for employee training that is productivity-focused and “teleworking”
  • Labor rights for underage persons and for field workers, traders, and mine workers
  • Rules related to the payment of “back wages”
  • Collective bargaining and collective work relationships

For more information, contact a KPMG tax professional:


Jose Manuel Ramírez

+1 212 872 6541



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For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

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1801 K Street NW
Washington, DC 20006.
 

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