Amendment of Procedures

New Order or Decree

On February 24, 2017, Mexico’s President issued a Decree that amends Articles 107 and 123 of the Mexican Constitution to the effect that labor disputes will now be processed by federal or state labor courts, each state shall establish a Conciliation Center; at the federal level, the conciliatory function will be performed by an independent agency and individuals will gain more power in the collective bargaining. The Federal Labor Law should be amended with one year to adapt to the reforms contained in the Decree.

Increase to Minimum Wage

New Order or Decree

Starting January 1, 2017, labor, government and business leaders on the Minimum Wage Commission agreed to raise the daily minimum wage by almost 10%, a break from a years-long custom in which annual increases were roughly in line with inflation. The first increase ($4.00 Mexican pesos per day) has been designated as an amount to compensation for government’s failure to adjust the wage in 2016. The second increase (3.9%) represents the rate that is typically approved. Accordingly, on January 1, the rate increased from $73,04 to 80.04 pesos.

New Interpretation of Anti-Laundering Law Provision Regarding Outsourcing

New Regulation or Official Guidance

On October 21, 2016, Mexico's Ministry of Finance and Public Credit (“SHCP” for its acronym in Spanish) published its interpretation of a provision under the Anti-Laundering Law that adds outsourcing to the list of activities that must be disclosed and reported to the government. It is recommended that, before filing any disclosures pursuant to this Anti-Laundering Law requirement, companies verify whether their existing relationship with a contractor would, in fact, be deemed as engaging in outsourcing activities, as defined under the Federal Labor Law.

View all Q1 2017 Global Guide Quarterly updates