Special thanks to Liliana Hernandez-Salgado and Maria del Rosario Lombera for this update.

On November 12, 2020, the President of Mexico, Andres Manuel López Obrador, sent a draft bill to dramatically change subcontracting (outsourcing) regulations applicable to private companies. If approved by Congress, the bill will significantly impact companies with outsourcing and insourcing (with dual

Join us for Part 3 of our webinar series on the USMCA, as we approach entry-into-force of the agreement on July 1, 2020.  In this webinar, “USMCA: Labor Rules and Trade Remedies,” Baker McKenzie experts from the United States, Mexico and Canada will discuss how to prepare for enforcement under the Rapid Response

With thanks to our Global Immigration & Mobility team for this alert. 

The FY 2021 US H-1B Lottery is now complete and employers have been notified whether their requests to file H-1B Cap Subject Petitions were accepted under USCIS’ new electronic preregistration system. While one option may be to file an H-1B Cap registration request

What has changed

On December 10, 2019, the United States, Canada and Mexico reached an agreement on a revised United States-Mexico-Canada Agreement (“USMCA”), which establishes a rapid response labor mechanism (“RRLM”) for dispute resolution for alleged violations of the right of freedom of association and the right to collective bargaining in these countries. The mechanism allows the US and Canadian governments to make claims against facilities in Mexico for potential violations of these rights, to the extent that the rights are established by Mexican law. The Mexican government may also file a claim for potential violations to these labor rights in the US or Canada, but only if the facility involved is under an enforced order of the National Labor Relations Board or the Canada Industrial Relations Board, respectively. This mechanism cannot be invoked for disputes of this nature between the US and Canada.


Continue Reading USMCA Labor Provisions Have Potential Commercial Impact

As of August 1, companies doing business in Mexico can anticipate that unions will move quickly to legitimize existing collective agreements under a new government-issued protocol. Among other steps, the process includes a vote by covered employees to determine whether they approve the terms of the agreement. Collective agreements must be legitimized by May 1,

(With thanks to our colleagues in Mexico for this alert.)

What’s changed?

On January 25, 2019, more than 45,000 employees from 45 different manufacturing sites in Matamoros, Tamaulipas initiated a strike, which was allegedly incited by an activist outside the region. Their demands were a 20% salary increase and a significant increase in annual bonus to MXN $32,251.40 (about USD $1,600) per employee.


Continue Reading How To Prepare Your Company For The Shifting Union Environment In Mexico

(Thank you to our Baker McKenzie colleagues in Mexico for sharing this alert.)

As a result of a change in government leadership and recently signed laws and treaties, companies in Mexico now have an important “to do” for 2019: prepare to review any unions that are “on the books” and assess compliance in this new environment.

What are “White Unions”?

  • White Unions in Mexico are usually employer-friendly unions that — due to current legislation deficiencies — can effectively bar entry of other unions who might otherwise attempt to gain a foothold in the workplace. They have little to no actual membership and do not actively represent workers. Historically, any union could petition for unionization without the need to prove the support of workers.

What changed?


Continue Reading Companies Doing Business In Mexico Need To Revisit Union Relationships

In recent years, joint employer liability has emerged as a persistent threat for companies who use franchise business models. Franchisors are increasingly facing claims brought by employees of franchisees for entitlements flowing from their employment. The outcome in these cases is unpredictable because the law is undergoing change. As such, the joint employer aspects of

Join us for a breakfast briefing on March 27 in Palo Alto for an update on the latest trends and regulations impacting multinational employers in Latin America. Hear from leading practitioners in five key LATAM jurisdictions – Argentina, Brazil, Colombia, Mexico and Venezuela – as we address hot topics that employers are facing right now