GP&H Suite


GP&H Suite

8 Jun

Labor Reform and Legitimation of Contracts


The Labor Reform in Mexico is one of the issues that is of great importance today. Since this reform aims to put working conditions in order for all parties involved in the labor relationship, this reform has an impact on many areas of life in Mexico

Why should a collective bargaining agreement be legitimized?

  1. A way to terminate the collective contracts that exist in the Conciliation and Arbitration Boards, but are not reviewed because they are protection contracts, or inactive contracts that were not formally terminated.
  2. To avoid simulation in collective bargaining, the procedure for legitimizing existing collective contracts is established; an obligation that all unions must fulfill before May 1, 2023.
  3. All new collective agreements and their revisions must be approved by the workers through personal, free, direct and secret vote.
  4. If the workers do not legitimize their collective contract, it will be terminated but the workers will retain the rights and benefits acquired.

Legitimation of existing contracts:

  • Its foundation is the Eleventh Transitory Article of the Decree of May 1 that amended the Federal Labor Law.
  • It will be done only once, so all unions must legitimize their existing collective agreements before May 1, 2023.
  • Its purpose is to ratify the content of the existing collective agreements, deposited before the Conciliation and Arbitration Boards at the local and federal level, through the personal, free, direct and secret vote of the workers.
  • If the majority of the workers vote in favor of the collective bargaining agreement, the Ministry of Labor and Social Welfare, while the Federal Center for Labor Conciliation and Registration comes into operation, will issue the proof of legitimation.

All collective contracts that are deposited with the Conciliation and Arbitration Boards must be legitimized.

 The initial collective contracts and comprehensive reviews that are carried out before the Federal Center for Labor Registry Conciliation, through a democratic consultation that complies with the requirements of the law and is ratified by the authority, will be considered legitimate.

Javier Estrada

Gloria Ponce de León & Hernández

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