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Labor and employment Compliance guide Mexico, March 2020.

A global pandemic has shaken the world as businesses worldwide strive to stay afloat to breach the gap between what was projected and what is now, our reality. In Mexico where do we stand in labor and employment compliance as of March 26, 2020?

• Mexico is a coded law system (Federal Labor Law) that is strict in statutory benefits and workplace regulation.

• This Federal Labor code does not contain substantial instruction or comprehensive direction as to what is allowed and/or prohibited as per our current reality.

• As this unforeseen global pandemic strikes global markets, the second catastrophe emerges in the form of an unprecedented economic crisis thus altering operations, businesses and even legal systems worldwide.

Mexico´s Federal Labor Law only stipulates (since 2012 after the first H1N1 issue) that in case of a health emergency, Federal Government may administratively suspend operations of all or some industries nationwide. The effect of this declaration would entail that employers would be forced to pay a daily wage of $123.2 MXP to each employee for the duration of one month.

To date, these measures have not, and will not be taken by Federal Government thus leaving employers with a coded legal system that is inapplicable given current circumstances and no help in terms of “how to proceed.”

Our responsibility as Mexican Labor and employment advisors is to ask all employers to strive to stay afloat maintaining as many jobs as humanely possible. We are outside of what any legal code could foresee and thereafter only left with constitutional and legal principles that enable and compel us to act in unity for the benefit of mankind.

We are all taking desperate measures to maintain a country that is built on, and by the hands of the millions of employees that give our nation its competitive advantage.

It is not that we are called to act in accordance with the law since there is now, no applicable law. Let us exercise our freedom to comply with a greater decree utilizing the highest standards of integrity to maintain health, economic stability of our companies and our people whilst solving this controversy through peaceful resolution maintaining the will of employers and employees.

Now more than ever, in Mexico: Labor and employment compliance entails the responsibility to save our workplaces and our employees through whichever method we can conjure after we mutually agree to do so.

May we come together, agree, protect our employee’s health and save ourselves and our Nation.

Juan Jose Diaz Miron Salcedo

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