Special thanks to Jose (Pepe) Larroque, Carlos Martin del Campo and Javiera Medina-Reza.

The Mexico Ministry of Labor and Social Welfare (STPS) has announced that it will carry out an estimated 42,000 inspections in 2023. The inspections carry the possibility of significant fines and penalties issued per violation, per employee. It is imperative for global employers with operations in Mexico to train personnel and response teams on best practices for managing potential inspections and mitigating risk, including maintaining all necessary information and documents that must be supplied during an inspection.

In this Quick Chat video, our Labor & Employment partners in Mexico along with the Managing Partner for Baker McKenzie’s Mexico offices discuss what to expect from an inspection and outline the penalties for noncompliance. They also share insights from the field, discuss the potential defenses and warn against the possible registration cancelation for specialized service providers.

Click here to watch the video.