Amendments to the Federal Labor Law

Amendments to the Federal Labor Law

On November 30, 2012, a series of amendments to the Federal Labor Law was published in the Official Gazette of the Federation. The labor reform, which had been promoted as a tool to increase the country's productivity, was generally well received by the business and legal community at large, as it introduces novel legal concepts. On November 30, 2012, a series of amendments to the Federal Labor Law was published in the Official Gazette of the Federation. T

Amendments to the Federal Labor Law regarding “Subcontracting”. December 11, 2012. One aspect that has caused controversy, however, is the one relating to subcontracting. Many abuses have been committed over the past several years through the subcontracting figure, aimed at eliminating or reducing labor rights (mainly benefits) and at wholly or partially evading the payment of social security contributions. In order to combat these abuses, the Congress of the Union introduced a series of limitations on subcontracting, which have nonetheless caused concern among the business and legal sectors, as the regulation introduced is not entirely clear or predictable as to how it is to be applied. This brief note describes in general terms the reform introduced regarding subcontracting and the effects that such regulation may have on companies and their operations in Mexico. Please see the attached document or click here. For additional information, please contact our experts: Javier Lizardi, Partner: jlizardi@vwys.com.mx Luis Burgueño, Partner: lburgueno@vwys.com.mx Rodolfo Trampe, Associate: rtrampe@vwys.com.mx Amendments to the Federal Labor Law regarding “Subcontracting”. December 11, 2012. One aspect that has caused controversy, however, is the one relating to subcontracting. Many abuses have been committed over the past several years through the subcontracting figure, aimed at eliminating or reducing labor rights (mainly benefits) and at wholly or partially evading the payment of social security contributions. In order to combat these abuses, the Congress of the Union introduced a series of limitations on subcontracting, which have nonetheless caused concern among the business and legal sectors, as the regulation introduced is not entirely clear or predictable as to how it is to be applied. This brief note describes in general terms the reform introduced regarding subcontracting and the effects that such regulation may have on companies and their operations in Mexico. Please see the attached document or click here. For additional information, please contact our experts: Javier Lizardi, Partner: jlizardi@vwys.com.mx Luis Burgueño, Partner: lburgueno@vwys.com.mx Rodolfo Trampe, Associate: rtrampe@vwys.com.mx Amendments to the Federal Labor Law regarding “Subcontracting”. December 11, 2012. One aspect that has caused controversy, however, is the one relating to subcontracting. Many abuses have been committed over the past several years through the subcontracting figure, aimed at eliminating or reducing labor rights (mainly benefits) and at wholly or partially evading the payment of social security contributions. In order to combat these abuses, the Congress of the Union introduced a series of limitations on subcontracting, which have nonetheless caused concern among the business and legal sectors, as the regulation introduced is not entirely clear or predictable as to how it is to be applied. This brief note describes in general terms the reform introduced regarding subcontracting and the effects that such regulation may have on companies and their operations in Mexico. Please see the attached document or click here. For additional information, please contact our experts: Javier Lizardi, Partner: jlizardi@vwys.com.mx Luis Burgueño, Partner: lburgueno@vwys.com.mx Rodolfo Trampe, Associate: rtrampe@vwys.com.mx

PDF