Insight

Amendment to the Federal Labor Law in Mexico: New Rules of Conciliation and the Creation of Labor Courts

Amendment to the Federal Labor Law in Mexico: New Rules of Conciliation and the Creation of Labor Courts

Héctor González Graf

Héctor González Graf

July 2, 2019 11:12 AM

The amendment to the Federal Labor Law published on May 1, 2019 establishes new provisions regarding conciliation prior to jurisdictional proceedings. Important new institutions will be introduced with the creation of Labor Courts of the Judicial Branch of the Federation and of the Federative Entities, as well as the creation of the Federal Center for Labor Conciliation and Registration. The following important novelties are highlighted:

CONCILIATORY FUNCTION

In the new model of labor justice, workers will have to resort to a conciliatory instance as a prerequisite to be able to exercise their legal actions in the labor Courts. This requirement will not be necessary in cases of discrimination in employment due to pregnancy, sex, race, ethnic or social condition; designation of beneficiaries; claim for social security benefits; claim for ownership of Collective Bargaining Agreement, as well as conflicts related to union statutes and their modifications, in which legal actions may be exercised without exhausting the conciliatory instance.

If the employer fails to appear at the conciliatory stage a fine of 50 to 100 times the UMA shall be imposed.

The conciliation shall be carried out by the conciliating officer, who will issue the summons to a conciliation hearing, assess the reasons for the parties' failure to attend the conciliation hearing, propose agreements and certify compliance with the agreements.

Agreements entered into with the Conciliation Centre shall have full legal effect and may only be challenged if they contain conditions that imply a waiver of rights.

The importance of Conciliation is central to this Reform, privileging dialogue as an alternative means of conflict resolution, and trying to avoid saturation of the labor courts. The new labor procedure should significantly reduce the time it takes to resolve lawsuits.

Conciliation has always been a fundamental part of labor procedural law, but the increase in the workload of the Conciliation and Arbitration Boards, the reduction of the budget and the lack of professionalization of civil servants, together with the economic interests of lawyers who seek to prolong trials in order to make them more expensive, led to significant delays in the provision of justice by the Conciliation and Arbitration Boards.

AUTHORITIES AND TRANSITION RULES

The reform provides for the creation of several new labour authorities.

Labour Courts

The reform orders the creation of Federal and Local Labor Courts that will depend on the Judicial Branch of the Federation and the Judicial Branch of the Federative Entities that will be in charge of processing and resolving conflicts between workers and employers.

These courts replace the Local and Federal Conciliation and Arbitration Boards and must begin their functions in a maximum of three years in the Federative Entities and four years for the Federal Courts from the publication of the decree.

Federal Center for Labor Conciliation and Registration

The creation of the Federal Center for Labor Conciliation and Registration is ordered, which will have as its main attributions and functions the following:
  • To carry out the conciliatory function as a new alternative mechanism for the settlement of labor disputes.

  • To register all collective bargaining agreements, internal labour regulations and trade union organizations throughout the country.

  • It will be a Decentralized Public Organism of the Federal Government, with domicile in Mexico City and have regional offices in the Federative Entities. The Center must have legal personality and its own patrimony, full technical, operative, budgetary, decision and management autonomy.

  • The Federal Center for Labor Conciliation and Registration shall initiate its functions in matters of registration of labor associations and collective bargaining agreements within a period of no more than two years from the entry into force of the amendment to the Act, taking into account the budgetary possibilities.

  • The Federal Center for Labor Conciliation and Registration must initiate its functions as a Federal conciliatory authority within a maximum of four years from the entry into force of the decree.

Within one hundred and eighty days it must issue the organic law of the Decentralized Public Body called "Federal Center for Labor Conciliation and Registration".
  • The Conciliation Centers of the Federative Entities and Mexico City will have the following main functions:
  • To perform the conciliatory function in conflicts between employers and workers.
  • Put into practice the Professional Career Service to train and professionalize personnel that performs conciliatory functions.

Registry function and administration of collective agreements

As long as the Federal Center for Labor Conciliation and Registration does not become operational (maximum two years), the Secretariat of Labor and Social Welfare (STPS) and the Conciliation and Arbitration Boards will continue with their registration responsibilities of unions in accordance with the law in force until May 1, 2019.

Jurisdictional and conciliatory function

The Conciliation and Arbitration Boards will continue to hear labor lawsuits currently in process, as well as those generated from the entry into force of the decree until the Labor Courts come into operation.

While the labor courts and the local conciliation centers enter into function, the Labor Defense Attorney's Office retains the conciliatory functions temporarily.

Collective bargaining agreements must be reviewed at least once within the next four years in accordance with the procedure set out in the reform. Failure to review or comply with workers' knowledge and approval requirements will result in the termination of the collective bargaining agreement.

In order to consult the workers on the content of the Collective Agreements, the STPS must establish a verification protocol within three months of the decree coming into effect.

Coordinating Council for the Implementation of the Labor Reform

The Coordinating Council for the Implementation of the Labor Reform is created as a national body for consultation, planning and coordination that will have the objective of establishing national policy and coordination to implement the Labor Justice System at the federal and local levels under the terms of the law, with full respect for the attributions of the Federal and Local Powers.

This Council was established by the Secretary of Labor and a Council made up of representatives of the Ministry of the Interior, the Ministry of the Economy, the Attorney General's Office, CONAGO (Conferencia Nacional de Gobernadores), the National Commission of Superior Courts of Justice and the National Conference of Labor Secretaries.

Its main responsibilities include: the creation and facilities of the Federal Center for Labor Conciliation and Registration; the transfer and digitization of files; the creation and entry into office of labor courts; promoting the conclusion of matters that are pending and pending resolution; promoting professionalization in labor justice; as well as undertaking procedures to guarantee union democracy and authentic collective bargaining.

Labour reform will gradually take effect. Issues that affect administrative, individual and collective jurisdictional procedures will be subject to the functioning of the new conciliatory, registry and jurisdictional authorities, so the legal framework prior to the reform will continue to be applicable.

# # #

For more information, please contact any of MGGL's Partners:
  • Héctor González L. (hglarrazolo@mggl.com.mx)

  • Santiago Marván U. (smarvan@mggl.com.mx)

  • Héctor González G. (hglezgraf@mggl.com.mx)

  • Nelson Guerrero R. (nelson.guerrero@mggl.com.mx)

  • Emilio I. Garzón J. (emilio.garzon@mggl.com.mx)

  • Cristian J. Lamas P. (cristian.lamas@mggl.com.mx)

Tel. +52 55 5340 6840 - info@mggl.com.mx - www.mggl.com.mx

Related Articles

IN PARTNERSHIP

MEDIATION: A Particularly Powerful Tool in Family Law


by Susan Latham Steffey

Mediation can be the solution to many questions surrounding family law disputes. One lawyer explains several of the benefits to family law mediation.

Two women and man having discussion with purple background

The Resolution Solution


by John Oh

The pandemic threw sand in the gears of America’s slow-moving trial system, making mediation an increasingly attractive option for plaintiffs and defendants.

Vintage image of man with fists up with yellow backdrop and oversized hand pointing

Is Family Law Mediation the Future of Conflict Resolution?


by Best Lawyers

In recent years, family law mediation has started to emerge as the preferred option over traditional forms of litigation, offering clients an amicable and efficient alternative of conflict resolution.

Silhouettes of family split into multiple sections

Destiny Fulfilled


by Sara Collin

Was Angela Reddock-Wright destined to become a lawyer? It sure seems that way. Yet her path was circuitous. This accomplished employment attorney, turned mediator, arbitrator and ADR specialist nonpareil discusses her career, the role of attorneys in society, the new world of post-pandemic work and why new Supreme Court Justice Ketanji Brown Jackson represents the future.

Interview with Lawyer Angela Reddock-Wright

Meeting Halfway


by Julia B. Meister

To resolve family and business disputes including wills, trusts, estates and more, mediation is often a more effective, gentler and cheaper option than litigation.

Mediation to Resolve Wills, Trusts, Estates

It’s a Gas, Gas, Gas


by Best Lawyers

Michael Polkinghorne discusses why arbitration or mediation is a better option.

An Interview With White & Case LLP

How to Advise Clients in International Arbitration and Mediation


by Best Lawyers

Karl Pörnbacher discusses how his firm stays at the forefront of advising clients.

An Interview With Hogan Lovells

An Interview With Egorov Puginsky Afanasiev & Partners


by Best Lawyers

Russia's 2020 "Law Firm of the Year" in Arbitration & Mediation Law

An Interview With Egorov Puginsky Afanasiev

Split Decisions


by Lindsey Kujawa and Susan A. Hansen

Marriage is changing—and so is divorce. Family lawyers must be there for richer and for poorer, in sickness and in health.

Divorce is Changing Family Law

Lesleigh Wiggs Monahan on What Makes a Good Family Lawyer


by Best Lawyers

Lesleigh Wiggs Monahan of Polidori Franklin Monahan & Beattie discusses her 2019 "Lawyer of the Year" award.

Lesleigh Wiggs Monahan LOTY Interview

Bringing Choices to Family Law


by Nicole Ortiz

What alternatives do you have to litigation in a divorce?

Why Collaborative Law Could Help your Divorce

Family Matters


by Kathryn Graves

Early case management and alternative dispute resolutions seek to simplify some separations in Minnesota.

Family Matters

Trending Articles

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

Announcing the 2022 Best Lawyers® in the United States


by Best Lawyers

The results include an elite field of top lawyers listed in the 28th Edition of The Best Lawyers in America® and in the 2nd Edition of Best Lawyers: Ones to Watch in America for 2022.

2022 Best Lawyers Listings for United States

2021 Best Lawyers: The Global Issue


by Best Lawyers

The 2021 Global Issue features top legal talent from the most recent editions of Best Lawyers and Best Lawyers: Ones to Watch worldwide.

2021 Best Lawyers: The Global Issue

The U.S. Best Lawyers Voting Season Is Open


by Best Lawyers

The voting season for the 31st edition of The Best Lawyers in America® and the 5th edition of Best Lawyers: Ones to Watch® in America is officially underway, and we are offering some helpful advice to this year’s voters.

Golden figures of people standing on blue surface connected by white lines

How To Find A Pro Bono Lawyer


by Best Lawyers

Best Lawyers dives into the vital role pro bono lawyers play in ensuring access to justice for all and the transformative impact they have on communities.

Hands joined around a table with phone, paper, pen and glasses

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

How Palworld Is Testing the Limits of Nintendo’s Legal Power


by Gregory Sirico

Many are calling the new game Palworld “Pokémon GO with guns,” noting the games striking similarities. Experts speculate how Nintendo could take legal action.

Animated figures with guns stand on top of creatures

The Best Lawyers in Australia™ 2024 Launch


by Best Lawyers

Best Lawyers is excited to announce The Best Lawyers in Australia™ for 2023, including the top lawyers and law firms from Australia.

Australian Parliament beside water at sunset

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

Inflation Escalation


by Ashley S. Wagner

Inflation and rising costs are at the forefront of everyone’s mind as we enter 2023. The current volatile market makes it more important than ever to understand the rent escalation clauses in current and future commercial lease agreements.

Suited figure in front of rising market and inflated balloon

A Celebration of Excellence: The Best Lawyers in Canada 2024 Awards


by Best Lawyers

As we embark on the 18th edition of The Best Lawyers in Canada™, we are excited to highlight excellence and top legal talent across the country.

Abstract image of red and white Canada flag in triangles

8 Different Types of Criminal Defenses in Law


by Best Lawyers

Learn about the different types of criminal defenses available in law, including innocence, self-defense, insanity and more. Protect your rights today.

Silver handcuffs laying on finger printed papers

Wage and Overtime Laws for Truck Drivers


by Greg Mansell

For truck drivers nationwide, underpayment and overtime violations are just the beginning of a long list of problems. Below we explore the wages you are entitled to but may not be receiving.

Truck Driver Wage and Overtime Laws in the US

The Upcycle Conundrum


by Karen Kreider Gaunt

Laudable or litigious? What you need to know about potential copyright and trademark infringement when repurposing products.

Repurposed Products and Copyright Infringemen

Choosing a Title Company: What a Seller Should Expect


by Roy D. Oppenheim

When it comes to choosing a title company, how much power exactly does a seller have?

Choosing the Title Company As Seller

The 2024 Best Lawyers in Spain™


by Best Lawyers

Best Lawyers is honored to announce the 16th edition of The Best Lawyers in Spain™ and the third edition of Best Lawyers: Ones to Watch in Spain™ for 2024.

Tall buildings and rushing traffic against clouds and sun in sky