Priego Brito & Guzmán Juárez Attorneys at Law

Future Labor Reforms!

Image depicting a legislative session where labor reforms are being discussed.

Dear friends, as every week it is a pleasure to greet you, wishing you an excellent Thursday, the topic to be discussed today will be the future labor reforms, which through the legislature, are in process to be approved and published some of them before the end of the year, which is already entering its final phase, so you may wonder what these labor reforms and how they will help the social sector of the country, well they areThe reduction of working hours, reduction of seniority premium, increase in Christmas bonus payment days“.  They are the most notable and of course the most important to be reformed, it is true that over the last few years the Federal Labor Law has already had several reforms to its various articles, however, several reforms will still be sought, as legal background, I expose the following:

As of today, Article 87 of the Federal Labor Law requires the payment of the Christmas bonus, which must be made no later than December twentieth of each year, and as payment a minimum of fifteen days of salary, in retribution for the income generated by the workers at their work sources.

Likewise, the seniority premium is established in Article 162 of the Labor Law, which provides that such benefit shall be paid in the amount of twelve days for each year of service, with a minimum limit of fifteen years of uninterrupted service with the employer.

In the same way, Chapter II in its Articles 58, 59, 60 and 61 of the Federal Labor Law, talks about the working hours and schedules that up to now operate in the labor-management relations. My friends, the aforementioned benefits, which are rights of the workers and obligation of respect and payment of the labor sources, are the ones that are expected to be reformed in harmony and improvement of the workers and without so much affectation to the companies, employers and/or sources of employment, but you will say how they are or how these reforms will be very simple, as far as the Christmas bonus is concerned, an increase of payment days from fifteen to thirty is sought, of the seniority bonus a reduction of years from fifteen to twelve and of the weekly working hours a reduction from forty-eight hours a week to forty-eight hours a week, The Legislative Branch is currently in its ordinary session, but it is expected that by the end of this year at least two of the three aforementioned reforms will be in place, and this is a clear development of the improvements to the country's labor conditions. It is evident that the march and progress of time cannot allow some benefits to continue as they are now, since the increase in labor and the economy continues to advance and this also implies changes to labor relations through benefits.

It is worth mentioning that the business sector presented counterproposals to the reforms of the benefits and this of course with the validity of the sector they represent, given that all opinions must be heard in order to seek a true social balance between the parties of this sector, which of course is the economic engine of the country, in the same way has caused controversy the future reforms with law decree since in the particular of the increase in the days of payment of Christmas bonus and reduction of the working day in immediate glimpses of economic effects, It is clear that whether the future reforms have been approved in their totality or only some of them, the Legislative Power should take into account that they should not be affected or at least that the effect should not have a significant impact on the employer sector, otherwise situations of conflict will arise between the social sectors (worker, employer) and this could affect the country's economy and also its growth.

MD. Alberto Iduarte Aguilar - Director of the Labor Area

Article written by:

MD. Alberto Iduarte Aguilar
Director of the labor area

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