Legislative Dynamism and Labor Law Changes in Mexico
With a majority in the Chamber of Deputies, amendments to the Federal Labor Law could be implemented swiftly, “the unprecedented legislative dynamism in Mexico demonstrates that creative legislation can advance without restraint, at the expense of employers, in labor matters, and we must stay vigilant,” said labor experts Jorge Sales Boyoli and José Sesma during a forum for high-level executives titled “Reduction of Work Hours and Other Relevant Changes.”
Labor Law Amendments: A Historical Perspective
Sales Boyoli and Sesma highlighted that in 55 years, the Federal Labor Law has been reformed 50 times, with 46% of those reforms occurring under the current administration led by President Andrés Manuel López Obrador (AMLO) and Claudia Sheinbaum, the current head of Mexico City’s government. AMLO made 16 amendments to the Federal Labor Law and the Constitution in Article 123, while Sheinbaum has proposed 7 reforms in just 7 months.
- 55 years: Total time since the Federal Labor Law was first enacted
- 50 reforms: Total number of amendments to the Federal Labor Law
- 46%: Percentage of reforms that occurred under the current administration
- AMLO: President Andrés Manuel López Obrador
- Sheinbaum: Claudia Sheinbaum, current head of Mexico City’s government
- 16 amendments: Number of Federal Labor Law amendments made by AMLO
- 7 reforms: Number of Federal Labor Law amendments proposed by Sheinbaum in 7 months
Key Areas of Proposed Labor Law Changes
There are 35 proposed initiatives, along with accumulated proposals, roughly distributed as follows:
- Family rights (8): Including quantification of alimony payments, equality and non-discrimination, rights of vulnerable minorities, intrusive language in labor contracts
- Working conditions: Reduction of work hours, increase of Christmas bonus; Economic benefits: Increase in maternity and menstrual leave
- Citizen participation: Modification to allow participation in extraordinary elections, such as official elections decreed during mandatory rest days
- Specialized regulations: Digital platforms
Work Hours Reduction and Christmas Bonus Increase
Amidst uncertainty over tariffs and government pressure for labor law changes, experts warn that work hours reduction and Christmas bonus increase are inevitable. Employers face dual pressure: tariff uncertainty and government-driven legislative changes.
“The reduction of work hours, which has been anticipated for a long time, has not yet seen specific proposals from the business sector. However, we might start hearing suggestions for geographically variable work hours soon,” Sales Boyoli explained, noting that a 40-hour work week in one state, like Chiapas, differs from a manufacturing job in Matamoros, Tamaulipas.
Consequently, businesses should reconsider their schedules, explore hiring more employees, and adjust productivity and goals to adapt to these potential changes.
Key Questions and Answers
- What is the current legislative dynamism in Mexico about? It primarily revolves around labor matters, with numerous proposed amendments to the Federal Labor Law under the current administration.
- How many times has the Federal Labor Law been amended in the past 55 years? It has been reformed 50 times.
- What percentage of these reforms occurred under the current administration? 46% of the reforms took place during this administration.
- What are some key areas of proposed labor law changes? These include family rights, working conditions, citizen participation, and specialized regulations for digital platforms.
- What are the potential changes to work hours and Christmas bonuses? Work hours reduction and Christmas bonus increase are likely, with geographically variable work hours being a possible proposal.
