LABOR JUSTICE REFORM

On recent days, the labor reform that we have been discussing in previous bulletins was published in the Federal Official Gazette...

Published by:     Villalobos & Moore    Date: 2017-03-08


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On recent days, the labor reform that we have been discussing in previous bulletins was published in the Federal Official Gazette. This reform modifies articles 107 and 123 of the Political Constitution of the United States of Mexico and is actually effective, although there is a one year term to make all the necessary legislative adjustments and other necessary actions for this reform to be fully applicable.

The most relevant aspect of this reform is in terms of labor administration of justice. In this sense, the reform establishes that the resolution of conflicts between workers and employers shall be under the jurisdiction of labor courts that will be part of the Judicial Branch of the Federation or of the States of Mexico. Their sentences and resolutions shall observe the principles of legality, impartiality, transparency, autonomy and independency. Before this reform, labor conflicts were submitted to labor boards, which pertained to the Executive branch.

Also, this reform promotes the conciliatory stage of labor conflicts, and therefore, before appearing to a labor court, workers and employers must appear before the corresponding conciliatory instance.

At State level, the conciliatory function will reside in specialized and impartial Conciliation Centers to be created in each State of Mexico. Such centers shall have legal personality and patrimony. These centers will have technical, operative, budgetary, decision making and administrative autonomy. These centers will be governed by the principles of certainty, independence, legality, impartiality, reliability, efficiency, objectivity, professionalism, transparency and publicity. Its formation and functioning shall be determined by local laws.

The law shall determine the procedure to be followed at the conciliatory stage. Such conciliatory stage shall consist of one mandatory hearing to take place at date and time promptly scheduled to such effect. The following conciliation hearings will only take place if both parties in conflict agree to them. The law shall establish the rules for labor agreements resulting from conciliation to acquire the status of definitive sentences, and for their enforcement.

At Federal level, the conciliatory function shall reside in a decentralized body. Such will also be in charge of the registration of all collective labor contracts and union organizations, as well as all union related administrative procedures.

The aforementioned decentralized body shall have legal personality and patrimony, as well as technical, operative, budgetary, decision making and administrative autonomy. This body will be governed by the principles of certainty, independence, legality, impartiality, reliability, efficiency, objectivity, professionalism, transparency and publicity. Its formation and functioning shall be determined by the corresponding law.

We hope you find this information useful and we remain at your service.

Author:  Villalobos & Moore, S.C.
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Of Counsel