The United States Mexico, and Canada Agreement (USMCA) sets forth obligations that go beyond those outlined by the Mexican Federal Labor Law, creating significant challenges in the labor sphere.
Why is it a challenge? Because it’s not enough to say or believe that we comply with these new obligations, the company must have support material to evidence its compliance.
What support material should we have? The elements that support compliance, among others, include manuals, policies, training, education, communications, etc.
Not having these elements presupposes a violation that has significant consequences.
To avoid sanctions, Companies in Mexico must ensure, among other points:
- Freedom of Association and Collective Bargaining: Companies, workers, and unions must comply with the requirements set out by Chapter 23 of the agreement.
- Elimination of Forced Labor.
- Prevention of Discrimination in Employment.
- Abolition of Child Labor.
- Regulation of Minimum Wages.
- Duration of the work shift.
- Safety and health in the workplace.
What sanctions could be imposed to a Mexican company?
Trade Prohibition: There may be trade restrictions, such as the imposition of tariffs or fees, as retaliation for non-compliance with certain provisions.
Suspension of Benefits: Benefits that a party under the agreement is entitled to receive could be suspended because of violations.
The EC Rubio team conducts USMCA Labor Compliance Audits, reviewing more than 50 points, and provides guidance on this matter, guaranteeing the future of your Company.
Labor & Social Security Practice
Ana María Becerra / [email protected]
Isaac Corral / [email protected]
Javier Canseco / [email protected]
Perla Arreola / [email protected]
Roberto Álvarez Malo / [email protected]
Rogelio Sánchez / [email protected]
Antonio Flores / [email protected]
Adriana Gómez / [email protected]
Alma Oviedo / [email protected]
Elisa Cortés / [email protected]
Eduardo Cortés / [email protected]
Gustavo Carrillo / [email protected]
Iván Arriaga / [email protected]
Jessica Fernández / [email protected]
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