Baker McKenzie partner Kerry Weinger introduces Liliana Hernandez-Salgado from Mexico City to talk about employment laws in Mexico and give an overview of what has changed in 2017 as well as what we can expect for the year ahead.
- Companies doing business in Mexico must stay tuned for further developments related to outsourcing regulations. Meanwhile companies with a traditional corporate structure of two legal entities, must review their corporate structure and outsourcing arrangements to mitigate labor, social security and tax risks.
- 2018 appears to be a year of significant amendments to the labor legislation in Mexico, mainly related to procedures to resolve individual and collective disputes. The amendment to the Mexican Constitution in 2017 could represent significant changes related to freedom of association, by establishing the obligation for unions to prove that they represent workers of the Company in order to file a strike call for the execution of a collective bargaining agreement. If the Mexican labor laws are amended in these terms, the practice of companies in Mexico to execute collective bargaining agreements to prevent a strike call, commonly known as “protection agreements”, will come to its end.
- Companies must review their anti-corruption, discrimination and harassment policies in the workplace. The implementation of appropriate policies, not only allow companies to impose disciplinary actions against employees who breach them, but they also prevent risks for the Company, including penalties from government agencies, payment of damages and even criminal liability.