Background on Diputado Pedro Haces and His Relevance
Diputado Pedro Haces, a member of the Morena party in Mexico’s Chamber of Deputies, is spearheading a significant reform to the Federal Labor Law. This proposed change aims to establish a minimum wage as a base salary, ensuring that no worker’s earnings fall below the minimum wage or professional minimum wage, depending on their job. Haces has been instrumental in advocating for fair treatment of Mexico’s 700,000-strong workforce that relies heavily on tips as their primary income source.
Key Aspects of the Proposed Reform
The reform, which has already been unanimously approved by the Chamber of Deputies’ Labor Commission, ensures that:
- Minimum wage cannot be replaced by tips: The proposed law guarantees that the minimum wage will not be substituted or compensated by tips, commissions, or any other additional form of payment.
- Sufficient income for workers: The minimum wage must be adequate to cover the normal material and cultural needs of a head of household, including education for their children.
Impact on Various Sectors
This reform primarily targets sectors where workers heavily rely on tips, such as:
- Waitstaff
- Gas station service providers
- Hotel doormen
- Car parking attendants
- Sports, entertainment, and similar establishments
Additional Benefits of the Reform
Diputado Haces explained that this reform will also enable workers to access benefits outlined in Article 123 of the Mexican Constitution, including:
- Healthcare
- Dignified housing
- Access to low-cost property acquisition through recent reforms in the Infonavit law
Distribution of Tips and Employer Obligations
Under the new regulations, employers cannot withhold, claim, or participate in tips. Instead, workers will distribute the tips equitably among themselves.
- Integration of tips into total payment: Employers must include tips in the overall service payment, making it optional if tips are given directly.
- Compliance timeline: Employers have 180 natural days from the decree’s enactment to adjust their internal regulations to comply with Article 423 of the Federal Labor Law.
Key Questions and Answers
- What is the purpose of this reform? The primary goal is to establish a minimum wage as a base salary, ensuring no worker earns less than the minimum wage or professional minimum wage based on their job.
- Which sectors will be affected by this reform? The reform primarily impacts sectors where workers rely heavily on tips, such as waitstaff, gas station service providers, hotel doormen, car parking attendants, sports and entertainment establishments.
- What additional benefits will workers gain from this reform? Workers will have access to healthcare, dignified housing, and low-cost property acquisition through recent reforms in the Infonavit law.
- How will tips be distributed among workers? Employers cannot withhold, claim, or participate in tips. Workers will distribute the tips equitably among themselves.
- What is the timeline for employers to comply with these changes? Employers have 180 natural days from the decree’s enactment to adjust their internal regulations to comply with Article 423 of the Federal Labor Law.
