Long-term restriction barring public officials from working in the private sector declared unconstitutional

Long-term restriction barring public officials from working in the private sector declared unconstitutional

April, 2022

On April 4, 2022, the Supreme Court of Justice of the Nation (the “Court”) began its analysis of the challenges to the Federal Republican Austerity Law (“LFAR”), arising from unconstitutionality action 139/2019 brought by Senators of the Republic.

In its session of April 4, 2022, the Court unanimously invalidated the second paragraph of Article 24 of the LFAR. This article provides that public servants who held senior management positions and have left their posts may not take up positions in private companies that they supervised, regulated, or with respect to which they had privileged information, for a period of ten years. The Court invalidated this restriction on the grounds that the measure interferes in a disproportionate, unnecessary, and unjustified manner with the freedom to work and to engage in a profession, trade, and industry, as recognized by Article 5 of the Constitution, since it prevents former officials from freely providing their services in the private sector. The judgment in the unconstitutionality action has not yet been published by the Court, given that the discussion of the matter will continue during the next session of the Court’s Plenary in order to analyze the other articles challenged in this unconstitutionality action.

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