Mexico: Labour Exploitation, Recent Legislative Amendments and Business Implications
On 7 June 2024, a decree was published in the Official Gazette of the Federation, introducing significant amendments to the general law to prevent, punish, and eradicate crimes related to human trafficking and to protect and assist victims of these crimes. Article 21 in its Section IV now categorizes labour exploitation as a punishable crime.
Article 21 of the General Law states that this crime could be punishable by 3 to 10 years of imprisonment and fines ranging from 3 to 10 years of imprisonment and fines between 7,000 and 70,000 days depending on whether it is related to Afro-Mexican communities. The law defines labour exploitation as “working hours beyond what is stipulated by law.”
This reform has sparked confusion and concern within the business sector regarding its scope and interpretation. It is crucial to note that the definition and regulation of working hours are primarily labour issues, not criminal ones. The Federal Labour Law, which regulates Article 123 of the Constitution on labour matters, contains these definitions and regulations.
The Federal Labour Law provides several legal working hour scenarios, not limited to working hours of 8, 7.5, and 7 hours, depending on whether they are daytime, mixed, or nighttime work shifts. The law also allows for the extension of working hours under extraordinary circumstances, as per Articles 65 and 66.
Furthermore, Article 59 allows employers and employees to set the length of the working day and distribute working hours to enable employees to rest on Saturday afternoons or any equivalent arrangement.
As long as the rules and criteria derived from the Federal Labour Law are applied, no criminal offense can be established since the legality of the working day is determined by the Federal Labour Law.
Two groups that might face unique challenges under this new reform are teleworkers and domestic workers:
- Teleworkers: The modality of telework includes the disconnection right. Meaning, employees should not be required to engage in work-related activities beyond their stipulated working hours. Ensuring compliance with this right can be complex, as monitoring and enforcing work hours in a telework environment can be challenging. Mismanagement in this area could lead to unintentional labour exploitation charges under the new decree.
- Domestic Workers: This group often works in environments where working hours can be flexible and less formally regulated. Ensuring that domestic workers’ hours are clearly defined and adhered to is critical. Employers must be diligent in avoiding any extension of work hours beyond what is legally permissible to prevent falling afoul of the new labour exploitation regulations.
Given that this decree has already come into force, it is imperative for companies to evaluate their working hours, compensation schemes, and overtime payments to ensure compliance with the Labour Law and avoid any potential legal issues.
