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Legal Focus

JULY 2013

W Brief Balance and Current Status

hat matters most about the Reform is that it was achieved. The myth that the labor law was untouchable was broken. The last substantive reform

dates 42 years back. Its rigid structure remained intact for almost 82 years. Therefore, despite its omissions, defects and complexities, this reform is not forever, because, as most countries do, we can correct, extend or modify what remained pending.

It is a necessary reform that is still in process, more modifications and negotiation are needed. During the crisis of 2009, much of the industry, in order to survive, agreed to make technical stoppages and to cancel benefits; our legislation proved to be ineffective to face this reality.

In Mexico, a considerable part of the services sector is on the border of informality. It has a weak primary sector and the secondary sector faces strong competition from abroad. The law must see to this reality and one priority must be to formalize the labor market.

The Law alone or its reforms will not create employment. The creation of employment obeys to multiple factors related to economic growth, to institutions and the international environment. No one invests in a country with high labor costs, not because of its qualified workers, but due to labor conquests obtained in times of economic protectionism, that made it rigid and hampered the worker-employer relationships.

So far, the balance of the labor reform has been www.lawyer-monthly.com

beneficial. Among its relevant aspects, the principle of decent work and substantive equality among men and women in the employment relationships was established, and employers are now more aware of these issues.

In procedural matters favorable changes were made to accelerate rending justice. The parties in the labor actions must be professionals in law; conciliation was favored, which in practice has generated quicker processes, with more conciliation.

Some legal concepts, such as trial period, initial training and seasonal work were regulated, so far without the damaging effects foretold by some. However, they were regulated in excess, reducing their practical effectiveness.

In the negative aspect, in matters of competitiveness, outsourcing was regulated in excess. This was reflected on the trust of some investors, because of new and hard to meet requirements. However personnel services providers, who meet their obligations, can liberate the beneficiary of their services of any liability.

A National Productivity Committee was created and recently set up, to give support to micro and medium-size enterprises. One of its functions is to design a national and global diagnosis of the requirements to lift productivity and competitiveness in each sector and branch of industry and of services. Promoting the use of better technological and organizational practices seeks to increase productivity in the enterprises according to their degree of development.

Contact:

tomas natividad Sánchez natividad Abogados Buffon no. 4

Colonia nueva Anzures delegación Miguel Hidalgo Mexico

tel: 00 52 55 5089 7200 Email: tomas@natividad-abogados.com.mx

After many years of endeavors, negotiations, agreements and dedication, the sectors involved in the labor field, entrepreneurs and workers, reached the Reform to the Federal Labor Law that came into force in general on December 1st, 2012. To find out more, we benefit from an exclusive article written by Tomas H. Natividad from Mexican law firm, Natividad Abogados.

Even though it is not the ideal reform, the Reform of the Labor Law passed on December 1st, 2012 is a major step, which proves to the country and to the World, that Mexico is moving forward and that we are growing increasingly competitive and productive. LM

Tomás H. Natividad Sánchez is founder and director partner of the Law Firm. With over 30 years since its creation, it has consolidated its position, relations and prestige based on development and innovation of the consulting services, planning and solution of disputes in the areas of Labor Law and Social Security. Because of its work, it is acknowledged as one of the main law firms in the matters of its specialty, particularly because of the results, efficiency and labor security the firm provides its clients.