Legal Updates Articles

Evidentiary Value of Photocopies in Mexican Labor Board Proceedings

By Adrián Salgado

The Sixth Collegiate Court on Labor Matters of the First Circuit published judicial decision number I.16o.T.J/2(10a), which reads: “Plain photocopies submitted in a labor board lawsuit. Regarding its probative value, when the origin, authorship or preparation of the original document is attributed to the opposing party to the offeror.” In this case decision, the Court ruled that the Labor Board may grant evidentiary value to a photocopy, including plenary probative value to a simple copy of a document whose origin, authorship or preparation of the original is attributed to the opposing party, if such party does not object to the document or does so in general terms, without objecting to its authorship and existence.  Such a non-objection will be considered … read more

Recent Jurisprudence – Jurisdiction by Expressed Submission in Commercial Contracts

By Adrian Salgado

Recently, all the magistrates of the Third Circuit in Civil Matters published a thesis of jurisprudence in response to thesis number PC.III.C.J 33 C (10a.), the heading to which reads: “Jurisdiction by express submission. For the validity of the agreement described herein, it suffices that the court to which the parties are bound is expressly designated, even if only one of the parties waives the jurisdiction granted by law.” In this decision, all the magistrates of the Third Circuit in Civil Matters concluded that in order to be effective, in the submission of an oral agreement to the court designated by the parties to a contract, it is sufficient if the parties manifest in a clear and definitive manner, which … read more

A New Era in the Regulation of Natural Gas in Mexico, by José María Lujambio

July 1, 2017 is an historic date for the natural gas sector in Mexico. On such date started the so-called “permanent regime” of capacity reservation in the National Integrated Transportation and Storage System. In addition, the terms and conditions for the first-hand sales of natural gas made by Pemex Industrial Transformation, and the natural gas trading contract model for the affiliate MGC México, entered into force. The last time the Energy Regulatory Commission (“CRE”) had sought to launch the “permanent regime” was in September 2011. At that time, Pemex Gas and Basic Petrochemistry successfully challenged the resolution by such regulator. In fact, that was the last attempt by the CRE to demonstrate that the regulatory framework, institutional arrangement and industrial … read more

Restructure of the VAT Certification System, by Edmundo Elias and Marisol de León

Based on the First Resolution of Modifications to the General Rules of Foreign Trade for 2016, published on May 9, 2016, a new comprehensive certification scheme was established, consisting of a permanent compliance program for companies that will be certified in new modalities, including VAT Certification and Authorized Economic Operator. Under this new comprehensive certification scheme, obligations that used to be of instant or temporary compliance, have become permanent. Even though the VAT certification renewal process has been simplified, compliance with the obligations derived from the VAT certification may be reviewed at any time and, in case of non-compliance, a cancellation procedure may be initiated. The government authorities that review compliance with a VAT certification have a stricter policy and … read more

Customs Valuation

The recent publication of new Regulations to Mexico’s Customs Law offer important changes in customs valuation methodologies. The obligations established in Article 81 of such Regulation, which consists of presenting documentation attached to the statement of value provided to a customs agent, should have entered into force. However, this obligation has been extended on several occasions and will now enter into force in January 2018. The documents that will be required to be delivered to the customs agent include the following: a) Commercial invoice; b) Bill of lading, packing list, airway bill and/or other transport documents; c) Certificate of origin; d) When the value declared in customs is less than the estimated prices by the Secretary of Economy, the document … read more

Money Laundering Prevention in Outsourcing Services, by Miriam Name and Fernando Juárez

In November 2016, the Financial Intelligence Unit (“UIF”) of the Ministry of Finance and Public Credit (“SHCP”) published on its website new rules in relation to outsourcing activities. In such rules, the UIF determined that the provision of services constituted a vulnerable activity under the terms of the Federal Law for the Prevention and Identification of Operations with Resources of Illegal Origin (“LFIPIORPI”) or “Anti-Laundering Law”. This new rule may reviewed at The new rules imply that companies that provide personnel services (outsourcing and/or insourcing) must comply with a series of administrative burdens established by the Anti-Laundering Law. These obligations include identifying operations, appointing representatives before the UIF, filing notices and keeping documentation on file, among others. As can … read more

Relevant Aspects to Consider When Managing Employee Attendance Records, by Maria Fernanda Magallanes

In Mexico, it is vital for companies to take appropriate measures to control their employees’ attendance. This not only entails confirming their schedules, but also issues related to the measurement of productivity within the company and how to avoid claims in the event of a labor lawsuit. It is the employer whom, in case of labor lawsuit, has the burden to prove the following to the labor authorities: i) the work schedule; (ii) whether or not the employees worked overtime, and, if applicable, the payment of the such; and (iii) if the employees were absent from work with a justified or unjustified reason, and, if applicable,  be able to  prove the corresponding discounts for these absences or even to prove … read more

Criminal Liability of Entities, by Eduardo Parroquín Patiño

With the new National Code of Penal Procedures entering into force and the reforms made to the Federal Penal Code on June 18 and 17, 2016, respectively, entities in Mexico may now incur criminal liability and, consequently, be severely sanctioned for crimes committed under the auspices and with the assets of the entity. The foregoing is regardless of the liability incurred by the individual whom committed, participated in or provided instructions as to the criminal act. It may be possible to mitigate an entity’s criminal liability by demonstrating that authorized individuals monitor and take precautions to prevent criminal conduct by the organization. Article 11 Bis of the Mexican Federal Penal Code establishes a list of crimes for which an entity … read more

Recent Jurisprudence –Termination of Employment Agreements. Ratification before the Labor Board, by Adrián Salgado

Recently, the Second Chamber of the Supreme Court of Mexico issued legal decision by contradiction titled: “Termination of Employment Agreements. The parties are not required to appear before the competent Labor Board in order to ratify such.” In this legal decision, the Second Chamber states that pursuant to an interpretation of labor provisions relative to employment termination agreements, it is concluded that it is not required that an employer and employee ratify the corresponding agreement before the Labor Board, since this ratification is optional and does not imply that the employee loses the opportunity to file an action for nullity through the corresponding labor proceeding. Furthermore, the option to ratify the agreement should not be understood as an obligation that … read more

Legal Unit of Measure, by Maria Fernanda Magallanes

Several legal and constitutional amendments were published on January 27, 2016 in order to replace the minimum wage reference with the Legal Unit of Measure (Unidad de Medida y Actualización or UMA, for is Spanish acronym), as the unit of account, index, base, measure or reference to determine the amounts for payment of obligations, contributions, fines, fees and other concepts provided for in federal, state and local laws. In order to determine the amount to be paid, the amount of the obligation or assumption, expressed in said units, must be multiplied by the value of said unit on the corresponding date. The use of the UMA does not apply to labor matters, which will continue to be governed by the … read more