Introduction
As the new ordinary session of Congress begins on September 1, there is a chance that pending projects will be resumed. Among these are labor reforms such as reducing working hours, securing minimum wage and tips in the service sector, luto (mourning) leave, medical exams, first employment programs, salary gap inspections, and rights for workers in the arts.
Background on Labor Reforms
The current legislature has accumulated over 190 labor-related initiatives, with a significant portion of the Ley Federal del Trabajo (LFT) undergoing reform. In fact, the past two legislatures (2018-2024) saw 35% of all labor legislation reforms, marking the most modifications in the last five decades.
Key Labor Reforms
- 1. Reduction of Working Hours: The 40-hour workweek is a top priority. Claudia Sheinbaum, the mayor of Mexico City, has committed to reducing working hours since her first day in office. After consultations through the Secretariat of Labor and Social Prevision (STPS), there seems to be a consensus (with some nuances) to lower the limit on working hours.
- 2. Minimum Wage and Tips in Service Establishments: The LFT reform has already passed its first legislative round. The Chamber of Deputies unanimously approved that service establishments, such as hotels, restaurants, and bars, must guarantee the minimum wage to their employees. Additionally, it aims to protect tips and give employees the right to decide how they are distributed. This modification awaits discussion in the Senate.
- 3. Luto (Mourning) Leave: The Senate’s Labor and Social Prevision Commission approved a draft in March to recognize luto leave. The labor reform aims to ensure this right for both private and public sector workers, establishing five days of paid leave upon the death of a close family member.
- 4. Medical Exam Leave: Another advanced discussion that could resume in the coming months is remunerated leave for medical exams. A draft has been approved in the Chamber of Deputies, allowing employers (public and private) to grant up to two paid leaves per year for medical exams and preventive studies.
- 5. Salary Gap Inspections: This reform aims to make it mandatory for the STPS and local authorities to conduct inspections verifying equal pay principles. Although it seems like an isolated modification, the proposal aligns with the package of reforms approved by Congress to acknowledge gender wage gap in the Constitution and commit the state to its elimination.
- 6. Youth Employability: The Chamber of Deputies is still considering a draft to promote first employment. The project aims for the National Service Employment (SNE) to design, conduct, and evaluate specific programs generating job opportunities for young people and vulnerable groups.
- 7. Art Workers’ Rights: The LFT already has a chapter for actors and musicians. However, senators intend to broaden protection to all art workers, including scriptwriters, dance interpreters, painters, and more. Proposed changes include setting salaries based on performances or interpretations and ensuring employers provide suitable workplaces and necessary materials.
Implementation of Ley Silla and Regulation of Digital Platform Work
Besides potential legislative discussions, the labor agenda for the last quarter of the year will also focus on implementing recent changes: Ley Silla and regulation of digital platform work.
- Ley Silla Implementation: Although the law has already taken effect, companies have 180 days (by December 14) to adjust their internal work regulations, including aspects like break times and silla (chair) usage rules.
- Digital Platform Work Regulation: The IMSS pilot program for digital platform workers’ affiliation will continue until December. This exercise will allow proposing necessary adjustments to social security legislation to create a suitable regime for this work model.
Key Questions and Answers
- What is Ley Silla? Ley Silla is a recent labor reform that mandates specific work regulations, including break times and chair usage rules.
- What is the IMSS pilot program for digital platform workers? The Instituto Mexicano del Seguro Social (IMSS) pilot program aims to affiliate workers from digital platforms, allowing for necessary adjustments to social security legislation based on their unique work model.
