Labor Law

You have probably heard how different and complex labor relationships are in Mexico. Let us help you manage them efficiently and in compliance with applicable law. There are formalities which need to be met, and the culture is quite different with what you may have experienced in the past, even considering your substantial HR management experience. We can draft your employment agreements, set-up the mandatory employer-employee commissions which are applicable under Mexican labor law, prepare and file your internal work rules, and help you audit and properly maintain a Mexican labor file. Let us help. We can negotiate that employer substitution structure, and the new collective bargaining agreement. Yes: labor union life is vital, and the knowledge of the culture is a must to maintain a healthy and competitive relationship which will help your business grow. Have we discussed mandatory profit sharing under Mexican labor law?

Services and related transactions

Design and Formalization of Specific Employee Retention Plans, Stock Options and Similar Structures.

  • Structuring and drafting of documents implementing different structures for employment retention for a number of Mexican Companies, commonly subsidiaries of foreign conglomerates.

Labor Audits, both Derived from any Particular Transaction, or Ordinary in order to Verify Compliance with Labor Law and Binding Labor Agreements.

  • Participating in periodically scheduled visits with our clients, providing for an immediate and accessible labor support and teaming-up with the human resources executives, officers and employees who most commonly require our support, and also having a direct knowledge of the business and labor involved, resulting in a most efficient and competitive service in which we are prepared to quickly respond, and anticipate, to our clients’ needs.
  • Coordination and conduction of voluntary labor audits to verify our client’s compliance with labor law, regulation and practices, as well as the use and maintenance of the appropriate documentation required to most efficiently face and reduce any labor risks.
  • Coordination and conduction of labor audits as part of due diligence procedures in the acquisition of an ongoing business, including the calculation of the relevant contingencies involved and the labor liabilities, and the analysis and calculation of the prevailing labor environment.

Advising in Specific Consultations Regarding Profit-Sharing, Employer Substitution, Labor Representation and the Calculation and Payment of Employment Benefits and Severance.

  • Advising a U.S.-based client in the process of hiring new employees for its Mexican operations in the tourism industry, revising employment agreements and advising on employment benefits and rights.
  • Participating in training, conferences and workshops with employees involved in the management of human resources, mainly targeted to explain to them and familiarizing them with the set of documents which shall legally be available for each employment relationship, and which will be the basis for any legal proceedings and the successful management of the institution’s labor relationships, reducing the labor risks involved.
  • Advising in the drafting and revision of severance and termination payments’ calculations, including seniority bonuses and labor liabilities.
  • Coordination and formalization of all steps involved in an employment substitution process, whether implemented to resolve a particular need of a client, or in those case in which they become necessary as part of an asset acquisition or other similar corporate transaction.
  • Reviewing, drafting and advising on the form through which our clients shall document a number of aspects related with their employment relationships, from a simple payment stub, all in compliance with applicable labor law.
  • Calculating, negotiating and formalizing terms of severance payments to employees from different clients during their business acquisition transactions in Mexico.

Formalization, Registration and Operation of the Mandatory Mixed Commissions Provided for in Mexican Labor Law.

  • Proposing a scheme for the implementation of commissions in the internal work rules for the Mexican subsidiary of a mayor Japanese conglomerate in the automotive industry.
  • Reviewing the incorporation and registration of the Mixed Labor Commissions which are mandatory under applicable labor law, for a number of our Mexican clients.

Designing Strategies Related with the Transfer of Employees as a Result of Mergers, Spin-Offs and Acquisitions, including the Efficient Management of Such Actions.

  • Negotiating and performing an employment substitution derived from an assets acquisition transaction for a NASDAQ-listed company in the acquisition of a company in the food machinery industry.
  • Direct advice and participation in the restructuring of personnel, whether of an individual or collective nature.
  • Calculating, negotiating and formalizing terms of severance payments to employees from different clients during their business acquisition transactions in Mexico.
  • Participating in training, conferences and workshops with employees involved in the management of human resources, mainly targeted to explain to them and familiarizing them with the set of documents which shall legally be available for each employment relationship, and which will be the basis for any legal proceedings and the successful management of the institution’s labor relationships, reducing the labor risks involved.
  • Drafting of employment agreement and all other relevant labor-related documents which are required from Mexican employers under Mexican labor law.
  • Coordination and formalization of all steps involved in an employment substitution process, whether implemented to resolve a particular need of a client, or in those case in which they become necessary as part of an asset acquisition or other similar corporate transaction.

Individual Negotiations for the Voluntary Termination of the Employment Relationship.

  • Direct advice and participation in the restructuring of personnel, whether of an individual or collective nature.
  • Advising and directly coordinating the drafting and negotiation of agreements to voluntarily terminate an employment relationship.
  • Drafting of internal work rules and the mixed commissions which are mandatory under applicable labor law.
  • Drafting of employment agreement and all other relevant labor-related documents which are required from Mexican employers under Mexican labor law.

Individual and Collective Labor Litigation.

  • Representing an Asian-based company during a labor litigation process in which they acted as co-defendant in one of its provider’s employee’s claim in Mexico.
  • Representing a British client during a labor litigation process in which they acted as defendant in one of its employee’s claim in Mexico.
  • Advising and coordinating the handling of all types of labor claims, of both individual and collective nature, in representation of a number of our clients.
  • General legal advice to Viskase Companies Inc. in its negotiation and settlement of a complex Mexican labor claim derived from the closing of its facilities in Monterrey, Mexico.

Collective Negotiation, Collective Bargaining Agreements, Inter-Union Conflicts, and Strike Petitions

  • Negotiating and completing the labor substitution of employees from one company to another derived from a business acquisition transaction.
  • Direct advice and participation in the restructuring of personnel, whether of an individual or collective nature.
  • Negotiating, drafting and reviewing collective bargaining agreements.
  • Direct participation, in representation of our clients, in the negotiations related with the yearly and semi-annual revisions to collective bargaining agreements.

Drafting and Formalizing Individual and Collective Employment Agreements.

  • Drafting of individual employment agreements and labor legal strategy for the Mexican operations of a subsidiary of a mayor Japanese conglomerate in the automotive industry.
  • Structuring, negotiating, drafting and formalizing a number of labor agreements entered into by companies starting operations in Mexico, including collective bargaining agreements, pre-operative agreements and individual labor agreements for both operators and management personnel.
  • Negotiating, drafting and reviewing collective bargaining agreements.
  • Direct participation, in representation of our clients, in the negotiations related with the yearly and semi-annual revisions to collective bargaining agreements.
  • Drafting of the elementary labor-related documents which are required by each client in order to be in compliance with labor law.

Drafting, Formalizing and Registering Internal Work Rules.

  • Drafting of internal work rules and related legal counsel for the Mexican operations of a subsidiary of a mayor Japanese conglomerate in the automotive industry.
  • Drafting of internal work rules and the mixed commissions which are mandatory under applicable labor law.

Legal Treatment of Expatriates in Mexico and Mexican Employees Working Abroad.

  • General advice to Trafocomp on several matters related to its new operations in Mexico, including immigration issues.
  • Advising and coordinating general immigration issues in respect of expatriates.

Development of mandatory Privacy Policy.

  • Drafting and implementing the privacy policies required under Mexican law to regulate the use and maintenance of personal information of the employees for most of our clients.

* For confidentiality purposes, we do not disclose the names of our clients in all representative transactions which are referenced above and within each of our practice areas.