Mexico: Recent Legislative Reform Initiatives on Labour Matters in Mexico

The incoming government, committed to maintaining leftist policies, aims to implement an extensive set of reforms designed to strengthen labour rights, improve working conditions, and enhance social protection. These reforms have the potential to significantly reshape the business environment by introducing new regulations and adjustments to labour laws, potentially redefining the relationships between employers and employees.

The impact of these reforms will be felt across various sectors, from businesses needing to adapt to new regulations to the adjustments required in compliance and operational strategies. The proposed reforms are intended not only to raise labour standards but also to foster a more equitable balance between workers’ needs and market demands.

The following are the labour reforms pending discussion in Mexico:

• Reduction of working hours: In Mexico, the workday is 48 hours per week, with the right to 1 day off per week. With the reform, the workday will be reduced to 40 hours per week.

In addition, the law establishes that for every 5 days worked, the employee will be entitled to at least two days off per week.
This would have an important impact on the payment of overtime and weekly rest days.

• Increase Christmas Bonus “Aguinaldo”: In Mexico, all workers are entitled to receive a Christmas bonus in the amount of 15 days of salary or the amount proportional to the number of working days per year. This amendment to the Federal Labour Law seeks to double the Christmas bonus received by workers from 15 to at least 30 days of salary.
• Seniority bonus: The seniority premium is paid both to persons who resign from a company and to those who are dismissed regardless of the cause. In the first case, the benefit is only granted if the person has 15 years of service. On the other hand, when the employment relationship is terminated by the employer (whether justified or not), the payment must be made regardless of the time the worker has worked.

 

Currently, the Federal Labour Law establishes an amount equivalent to 12 days of salary for each year worked.

The reform seeks to increase the seniority premium from 12 to 15 days of salary for each year worked and to reduce from 15 to 12 years the minimum period of service to access this benefit that is granted upon termination of the employment relationship.

• Menstrual leave: The initiative seeks to amend the Federal Labour Law to guarantee the right of working women to have 2 days of paid leave per month if they are diagnosed with dysmenorrhea in extreme cases (which must be accredited by a medical certificate).

 

The main objective is to guarantee gender equality in the workplace and to recognize women’s need for additional days off during their menstrual period to attend to their body’s needs.

• Paternity leave: Increased paternity leave from 5 days to 20 working days, which may be extended for up to 10 more days if the mother or infant has postpartum complications that are detrimental to their health.

 

This will not only apply for the birth of a baby, but will also be valid for adoption.

• Vacation bonus: The purpose of the vacation bonus is to provide workers with an extra income to enjoy their vacation period.

 

Currently, Article 80 of the Federal Labour Law establishes that workers are entitled to a bonus of no less than 25 percent of their wages during the vacation period. The proposal seeks to amend this provision to increase it to 50 percent of the minimum vacation bonus payment.

• Decent work for people with disabilities: There is a proposal to amend Article 132 of the Federal Labour Law, establishing that companies with more than 100 workers must have at least 1% of their employees with disabilities, and between 50 and 100 at least one worker with a disability.
• Decent work for the elderly: It is a proposed amendment to Articles 132 and 133 of the Federal Labour Law to require companies with at least 40 employees to have at least 5% of their workforce made up of workers over 60 years of age.
• Lactating period: An amendment to the Federal Labour Law that seeks to extend the breastfeeding period from six months to two years to guarantee the human right to maternity in the workplace and to avoid dismissals of female workers.

 

The provisions state that, during such a period, female employees may request flexibility in their work schedule and, in extraordinary cases, may bring their children to the workplace, provided that the children’s safety is not put at risk and upon prior agreement with the employer.

• Digital Platforms: There is a reform initiative that seeks to regulate digital platforms, including drivers who provide delivery services, and seeks to classify them as employment relationships due to the updating of the assumptions of subordination, periodicity in the provision of services, and remuneration.

 

It is crucial for both businesses and human resources to stay informed about these changes and prepare for the legal and operational implications that may arise. If any of the listed initiatives are approved, we will inform you in a timely, accurate, and informed manner of the steps to be taken.