Employers Beware: Major Changes in Mexican Labor and ... · Employers Beware: Major Changes in...
Transcript of Employers Beware: Major Changes in Mexican Labor and ... · Employers Beware: Major Changes in...
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Employers Beware: Major Changes in Mexican Labor and Employment Law
Tuesday, December 11, 2012 1
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Presenters
Moderator
Carmen Plaza de Jennings, Partner and Head, Latin America Practice Group, Hirschfeld Kraemer LLP, San Francisco, CA [email protected]
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Presenters
Speakers
Monica Bichara, Legal and Corporate
Security Director, The Home Depot - Mexico Division
Juan Carlos de la Vega, Partner, Santamarina y Steta, Monterrey, Mexico [email protected]
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Presenters Speakers
Fernando Alfonso Gonzalez Arriaga, Senior Associate, Santamarina y Steta,
Monterrey, Mexico [email protected].
Andrés Rodríguez, Partner, Santamarina y Steta, Mexico City, Mexico [email protected]. 4
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Presenters
Speakers
Mario Alberto Yañez Cariño, Senior Associate, Santamarina Y Steta, Mexico City, Mexico [email protected]
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Introduction to Amendments to the
Mexican Federal Labor Law
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Outsourcing (Juan Carlos de la Vega)
• Definition • Impact in the operating/services
companies structure. • Duty to share profits and effects in
2012 • Alternatives • Impact in specialized and general
outsourcings • Recommendations
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New Ways of Hiring (Andrés Rodríguez)
• In addition to employment agreements for indefinite term, fixed term, and to perform a task, we have INITIAL TRAINING AGREEMENTS
• Training agreements can be signed for up to 3 or 6 months
• Extension of probation periods in indefinite term agreements
• Pay per hour system
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New Justified Termination Grounds (Andres Rodriguez)
• Violence or ill treatment against clients or suppliers
• Harrasment, including sexual harrasment
• Lack of documentation needed to perform the job
• Reduction of burdens in termination for cause processes
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New Procedural Rules (Mario Yañez)
• Litigators must be lawyers • E-mails and electronic data as
evidence • Limitation to lost wages • Burden of proof in case of overtime
claims • Social security individual
proceedings
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New Employer’s Duties (Fernando González)
• Install and operate working places based on NOMs
• Place collective bargaining agreements in public places
• Work sites with 50+ employees must be adapted for disable working people
• Mandatory affiliation to FONACOT • Leave of absence with pay for fathers
in case of a new born 11
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New Prohibitions for Employers (Fernando González)
• Refuse to admit employees due to ethnic origin, nationality, gender, age, disability, social condition, health condition, religion, opinions, sexual preference, marital status or any other discriminatory aspect
• Request pregnancy certificates
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New Prohibitions for Employers (Fernando González)
• Terminating a female employee or forcing her to resign because of pregnancy, change in marital status or because she must look after children
• Sexual harrasment and any other kind of harrasment
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New Prohibitions for Employers (Fernando González)
• Allow harrasment at the workplace • Avoid the formation of unions or the
performance of union activities through implicit or explicit punishments
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New Rules on Promotions (Fernando González)
• Training as first criteria
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Additional Protections for Working Women
(Fernando González)
• Equal right and treatment. • In case of sanitary contingency • Leaves of absence in case of
maternity. • Adoption
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Fines for Violations of Federal Labor Law
(Fernando González)
• Basis for calculation is the General Minimum Wage
• Amounts up to US $30,000 • Recurrency • Fines applicable per affected
employee
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Union Matters (Juan Carlos de la Vega)
• Recognition of the autonomy union principle
• Publicity to union records • All collective bargaining agreements
will be public
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Union Matters (Juan Carlos de la Vega)
• All internal work regulations will be public.
• Elimination of provisions limiting employers to hire employees of one single union.
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In House Counsel’s Perspective (Monica Bichara)
• Outsourcing and insourcing risk analysis – Cross functional team
• New structures need to be designed – no one size fits all
• Operational, HR and PR functions should be taken into account
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In House Counsel’s Perspective (Monica Bichara)
– Outsourcing and services agreements with 3rd parties
• Language and structure • Additional bonds/guarantees • Pre and post-hiring due diligence
– Monitoring next 18 months is crucial • Well publicized law with effervescence in
different sectors • Challenges by unions and individuals
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In House Counsel’s Perspective (Monica Bichara)
• New ways of hiring – Understand and communicate new
flexibility to operations/HR business partners
• New justified termination grounds – Termination for cause continues to
place burden on employer – Adjust termination process to
accommodate new changes 22
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In House Counsel’s Perspective (Monica Bichara)
• New procedural rules – Limitation to lost wages
• Game Changer- limiting exposure will provide incentive for earlier settlements and should reduce overall employee litigation reserves
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In House Counsel’s Perspective (Monica Bichara)
• New employer duties and prohibitions – Publish collective bargaining
agreements and official internal work rules • Could create conflict with internal company
policies and procedures
• Review with transparency rules in mind
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In House Counsel’s Perspective (Monica Bichara)
• More robust rules on non-discrimination, equal-employment opportunities and harassment issues will be familiar to U.S. and Canadian counsel − Independent certifications – Ministry of Labor and Social Security:
• “Family Friendly Company” • Inclusive Company • Mexican Norm Certification of Equal Labor
Opportunities 25
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In House Counsel’s Perspective (Monica Bichara)
• Cont’d
– Mexican Center of Philanthropy • “Social Responsible Company”
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