Issue #
April 2011

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Federal Labor Law Reform Initiative Presented by Institutional Revolutionary Party(PRI)

April 4, 2011

Mexico’s labor law is a statute whose formation was a product of the demands of groups of workers within arevolutionary process (1910-1917) and later created as a result of demand of a corporatist structure of the governingpost-revolutionary regimes, and others who are claiming to be rightful heirs of the Mexican Revolution. In theMexican Constitution of 1917, which is still in force, a provision (article 123) but over time has been amended andwhich establishes the principles of Mexican Labor Law. This Constitutional provision also has served as the basis forother labor regulatory provisions, most importantly the Federal Labor Law (Ley Federal del Trabajo or FLT). Today,the need to make changes to the LFT has become evident since labor practices have surpassed the expectations andconditions contemplated in this law. Recently the Institutional Revolutionary Party (PRI) proposed a reform of theLFT which, among its principle points, contemplates the following: (i) to not change the principles in article 123 ofthe Political Constitution and the fundamental rights of workers in Mexico; (ii) to regulate the concept of“outsourcing” or companies providing personnel services; (iii) to integrate important changes in the hiring process,such as trial periods, initial training agreements and temporary workers; (iv) to harmonize various articles referring toemployer obligations to provide training of its employees on a permanent basis, extending the obligation to receivesuch training to the employees themselves; (v) strengthening a key factor in labor lawsuits, which is the conciliationefforts of the parties at any stage of the litigation process; (vi) to contemplate a regulation concerning digitaldocuments, electronic signatures or passwords; (vii) to establish a summary proceeding to handle conflicts arisingfrom social security contributions, housing contributions and contributions to workers retirement funds.