Highlights Of the Labor Reform ______________________________.

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Presentation transcript:

Highlights Of the Labor Reform ______________________________

President of Mexico submitted a bill to amend the Federal Labor Law to the Congress on September 1 st.. The Bill was approved by the Congress (with votes of the PRI and PAN) and was sent to the Senate. The Senate has 30 days (which expire on October 26 st. to pass the Bill, revise it and return it to the Congress for further analysis and/or, in its case, request the Executive Branch to publish it. What is happening?

Is it a real substantive labor reform? Without changes to the unions, there cannot be a real reform. – Transparency. – Secret vote. – Exclusion clause. The Bill basically regulates many current practices. What is happening?

New types of labor agreements: – 30-day contract (180 for administrative personnel). – Traineeships (3 months/6 months for administrative personnel). – Seasonal. New rules for companies that hire outsourcing companies. – Fines and penalties for those outsourcings that are, essentially, established to avoid paying taxes. Highlights

Definitions of Harassment (bullying) and Sexual Harassment are included, as well as Productivity. Back-wages, in the event of a dispute, are being capped. Productivity is know the basis for promotions. Highlights

Hourly rate. The Bill proposes that an employee be paid by the hour, provided, however, that the number of hours does not exceed the maximum legal work-shift and the wage to be paid to the employee is not lower than the wage corresponding to such work-shift. Additional causes for justified termination: – Commits immoral acts, or sexually harasses any person in the work place. Highlights

The obligation to register the company with the FONACOT was included. 3 day paternity-leave. Highlights

It is only a bill. There is real chances that the Senate does not approve the Bill because the PRI and the PAN are not in agreement, among others, with: – Outsourcing. – Unions. – Hourly wage. In the Senate, the senators of the left, will have the decisive votes. What now?

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