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LABOR MATTERS How can I face the world´s economic crisis trying to maintain my operation and my employees?? Mariano Esparza Vázquez Special.

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Presentation on theme: "LABOR MATTERS How can I face the world´s economic crisis trying to maintain my operation and my employees?? Mariano Esparza Vázquez Special."— Presentation transcript:

1 LABOR MATTERS How can I face the world´s economic crisis trying to maintain my operation and my employees?? Mariano Esparza Vázquez mev@nafta-law.com Special Presentation for members of the WMTA

2 Mariano Esparza Vázquez OTHER OPTIONS PROCEDURE BEFORE THE LABOR BOARD IS IT POSSIBLE TO REDUCE THE NUMBER OF WORKING DAYS? What can the EMPLOYER do to maintain the Mexican Operation and its Employees? See the list The CHANGE can be registered in less than a week The CHANGE can be registered in less than a week But you are going to have to comply with certian requirements and obtain worker´s consent But you are going to have to comply with certian requirements and obtain worker´s consent YES

3 1.- Employer and a representative of the Employees will have to SIGN an internal agreement. 2.- In order to support the validity of the Employee´s Representation, MOST of the EMPLOYEES will have to sign a MINUTE appointing to such representative. IS IT POSSIBLE TO REDUCE THE NUMBER OF WORKING DAYS? IS IT POSSIBLE TO REDUCE THE NUMBER OF WORKING DAYS? REQUIREMENTS

4 1.- The Employer will have to submitt the AGREEMENT before the Labor Board for approval. 2.- Then, such Labor Agreement is going to have to be RATIFIED before the Labor Board by the EMPLOYER and a REPRESENTATIVE OF THE EMPLOYEES at the DATE appointed by the Labor Board. 3.- Finally, the EMPLOYER will be allowed to ENFORCE the AGREEMENT. PROCEDURE BEFORE THE LABOR BOARD PROCEDURE BEFORE THE LABOR BOARD

5 a) Reduce the number of working HOURS (Instead of days); b) If you do not need to reduce the workshift during MONTHS but during specific days ONLY, then: I) Authorize vacations period in advance; or II) Authorize absences (with no salary). c) If you definitelly have to close operations, LIQUIDATE the Mexican Entity correctly and avoid future libilities for shareholders and representatives OTHER OPTIONS: IN ANY CASE, OBTAIN SIGNATURES FROM EMPLOYEES WITHIN PROPER DOCUMENT

6 Lic. Mariano Esparza-Vázquez mev@nafta-law.com Tel. 011 52 (664) 634 3557

7 Comments about workers right to have their salary within the bank institution of their election: Comments about workers right to have their salary within the bank institution of their election: a) Effective October 1, 2008, RULE NUMBER 46/2008 issued by the “BANCO DE MÉXICO” stated that Employees have the right to appear to their bank of their CHOISE and request to receive THERE their SALARY from him EMPLOYER. b) The above is an OBLIGATION imposed to the BANK INSTITUTION, not to the EMPLOYER. c) The EMPLOYER will continue making payroll deposits to the Bank Institution hired for such effect.

8 Comments about workers right to have their salary within the bank institution of their election: Comments about workers right to have their salary within the bank institution of their election: d) If the worker wants to receive his/her salary within a different bank, he/she will have to perform an specific procedure before the Bank institution of his CHOISE and THEN, an INTERNAL PROCEDURE is going to be performed between the following PARTIES: ** Bank Institution hired by EMPLOYER; ** Bank Institution SELECTED by the Employee; ** The Employee (EMPLOYER IS NOT INVOLVED)

9 Comments about workers right to have their salary within the bank institution of their election: Comments about workers right to have their salary within the bank institution of their election: e) The PROCEDURE is basically the following: I** The Employee will request in written to the Bank Institution of his choise, to receive his salary there. II** Then, the Bank Institution SELECTED by the EMPLOYEE will contact to the COMPANY´S BANK in order to notify them about the request of the EMPLOYEE. III** Both Banks are going to GENERATE an INTERNAL ELECTRONIC CODE so the COMPANY´S BANK can transfer (without any adittional order from the employer) the salary to the BANK SELECTED BY THE EMPLOYEE. IV** Finally, the Employee will receive his salary within his selected bank institution and the EMPLOYER will be able (as usual) to verify the deposit.

10 Lic. Mariano Esparza-Vázquez mev@nafta-law.com Tel. 011 52 (664) 634 3557


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