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On July 31, 2019, Mexico’s Ministry of Labor and Social Welfare (Secretaria del Trabajo y Previsión Social (STPS)) published in the Official Gazette of the Federation (Diario Oficial de la Federación, or DOF) the protocol for the legitimation of a currently existing collective bargaining agreement (CBA) in compliance with Transitory Article Eleven of the official decree published in the DOF on May 1, 2019. The objective of the legitimation process is to provide certainty to unionized employees, making sure they know the terms of the applicable CBA and their union.

On December 1, 2022, Mexican President Andrés Manuel Lopez Obrador announced that, unanimously, the business and labor sectors, as well as the government, had agreed to increase the minimum wage by 20 percent for 2023, which will be applicable in the Free Zone of the Northern Border (Zona Libre de la Frontera Norte or ZLFN), as well as the wage applicable in the rest of the country.

On January 11, 2021, the federal government published a decree in the Official Gazette of the Federation, amending the Federal Labor Law (FLL) to regulate the terms and conditions, employer and employee obligations, and safety and health measures related to telework. Telework is regulated by a special chapter of FLL and the telework designation is applicable whenever work is performed more than 40 percent of the time at an employee’s home or at a domicile that the employee has chosen and on which the employee has agreed.

The Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) approved, by a majority vote on December 01, 2021, an increase to the daily minimum wage applicable in Mexico (including the corresponding amount applicable in the Free Zone of the North Border (Zona Libre de la Frontera Norte or ZLFN).

On May 24, 2021, the Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social) (STPS) published guidance under the recently amended Mexican Labor Law in the Official Gazette of the Federation clarifying the outsourcing registration requirements for individuals and entities that provide subcontracting services. The amendment generally prohibits employers from subcontracting or outsourcing personnel, but includes carve-outs and exceptions under limited circumstances. The following provides a basic overview of the STPS outsourcing registration guidance.