The extension of vacation days, the regulation of outsourcing, and the new model of labor jurisdiction are only part of the various regulatory changes the Mexican labor market has experienced in recent years.
Four years ago, on May 1, 2019, the federal government announced with great fanfare a historic milestone by enacting the major reform of the Federal Labor Law (LFT), which modernized the labor law system and established new rules for union democracy.
This was just the beginning of a cascade of adjustments to labor rules in the country.
Between 2019 and 2023, at least 11 landmark legislative reforms will be implemented, affecting trade unions and the judiciary and ranging from recognizing new forms of work to extending leave and expanding social security rights.
On the occasion of International Labor Day, we present the main changes in the regulation of Mexican labor that have taken place in the last four years:
LABOR JURISDICTION AND TRADE UNION DEMOCRACY
This labor law reform abolished conciliation and arbitration boards and established mediation boards and labor courts at the federal and state levels as part of a new mechanism for resolving disputes between employers and employees.
It also established new rules for union democracy and collective bargaining by introducing in-person, free, direct, and secret ballots to elect union leaders and ratify collective bargaining agreements.
This reform was part of the conditions for approval of the Mexico-United States-Canada (T-MEC) treaty and was first presented by the current administration in December 2018 and approved by Congress in April 2019.
DOMESTIC WORKERS’ RIGHTS
In 2019, reform to recognize the labor rights of domestic workers, such as a written contract, Christmas bonuses, and vacations, was also promoted.
At the end of 2022, amendments were approved to recognize this professional group’s right to social security, following results obtained in two phases of a pilot program created by the Mexican Institute of Social Security (IMSS) for their affiliation.
LEAVE FOR FATHERS AND MOTHERS OF CHILDREN WITH CANCER
In 2019, a leave for working parents whose children under 16 have cancer was also approved.
The leave is for up to 28 days if medical recuperation or hospitalization is required, is granted by IMSS, and may be extended as often as necessary for a period not to exceed three years and not to exceed 364 days.
FEDERAL CENTER FOR EMPLOYMENT PLACEMENT AND REGISTRATION
In January 2020, the Federal Labor Mediation and Registration Center took shape after the publication of its Organic Law.
It is one of the key institutions in implementing the 2019 labor reform.
It is responsible for the first stage of the new system for resolving labor disputes through mediation mechanisms and has registration functions for labor unions and collective bargaining agreements.
WORKING FATHERS WITH ACCESS TO IMSS DAYCARE CENTERS
In 2020, the right of working fathers to access IMSS daycare services for their children was recognized.
Before this adjustment, the Social Security legislation only recognized working mothers with this right.
RECOGNITION OF TELEWORK
In 2021, the labor market welcomed the reform of telework.
At that time, the value of telework was recognized, and new obligations were established for employers, such as covering the electricity or internet costs of employees who work from home and respecting the digital disconnection of their employees.
PROTECTION OF THE MINIMUM WAGE
That same year, the Congress of Labor Unions included a padlock in the LFT to ensure that annual increases in the minimum wage are never below the inflation rate to avoid a decline in the face of rising prices.
Over the past four years, the base wage has seen historic adjustments.
BAN ON PERSONNEL OUTSOURCING
In April 2021, personnel outsourcing was banned after the reform that prohibited outsourcing based on the provision of labor came into effect.
These legislative changes established new rules for outsourcing services and specialized work and set high penalties for violations of the legislation.
UNDERAGE WORKERS IN AGRICULTURE
A year after the subcontracting reform furor, the amendment to the LFT went into effect, allowing the employment of minors between the ages of 15 and 17 in the fields, provided that the work is non-hazardous, involves the use of chemicals, the handling of machinery, heavy vehicles, and such other activities as determined by the competent authority.
SOCIAL SECURITY FOR SAME-SEX COUPLES.
At the end of 2022, the Union Congress decided that same-sex couples will have access to all social security benefits, such as pensions and childcare, once their civil partnership is recognized.
DECENT LEAVE (EXTENSION OF STATUTORY MINIMUM LEAVE)
Last December, amendments to the federal Labor Code were passed to double the minimum leave entitlement for private sector workers, a benefit that had not been changed in more than 50 years.
After one year, the minimum rest period increased from 6 to 12 days, with a gradual increase of two days per year of service.
WHAT LABOR REFORMS CAN BE EXPECTED IN 2023?
For now, the ordinary session ended without any new changes in labor legislation.
Reform projects that are in the middle of the legislative process and only need to be approved by one of the two chambers of Congress include:
- the new table of occupational diseases,
- the creation of a national nursing system,
- equal pay for men and women,
- the extension of paternity leave, and the prohibition of hiring restrictions by age group.
As for the reduction of working hours, the draft law on constitutional reform, which provides for a reduction in the working week from 48 to 40 hours, has already been approved by the Chamber’s committees, but it has yet to be voted on by the plenum, which means that the legislative process will take even longer.
Another pending legislative change, although not a legislative reform, is the NOM on telework.
This instrument, which will regulate health and safety conditions in the workplace, has already been approved by the National Commission for the Improvement of Legislation (Conamer) and can now be published in the Official Gazette of the Federation (DOF).
Other upcoming issues in the legislative pipeline include recognizing the labor rights of people who work as drivers and delivery drivers for digital platforms, a new chapter for agricultural day laborers in the LFT, and hiring quotas for older adults in companies.
The federal government and the benches in Congress are interested in progressing on all these issues.
More labor reforms could take shape in the last year of the current legislative session in the Congress of the Union, which begins Sept. 1.