The Ministry of Economics is pleased with the Senate’s approval of the Integral and Progressist Treaty of the Trans-Pacific Association (‘TPP-11’). The new treaty will become effective within 60 days following the approval and notification of either 6 or 50 percent of the signatory countries. According to the Ministry, TPP-11’s approval will strengthen Mexico’s commercial leadership across the globe.
The secondary law on labor matters, aimed to implement the constitutional reform published in the Official Gazette on February 24, 2017, is still pending for the Senate’s discussion and approval. On the other hand, within the context of the North America Free Trade Agreement (NAFTA)’s renegotiations, the United States of America and Canada have severely criticized Mexico due to its low salaries, the existence of ‘non-active CBAs’ or ‘drawer contracts’, the lack of a real union representation and the absence of independent labor justice, all wrongful trade practices that have refrained the labor reform. According to the President of the Senate’s Labor and Social Security Commission, an extraordinary session period is expected to have place between July and August 2018 for the labor law to be approved, and the replacement of Conciliation and Arbitration Labor Boards by labor courts will be gradual.
Understanding the distinction between contractors and employees and the re-characterisation of a contractor into an employee
L&E Global’s 2017 Global Handbook | Employees vs Independent Contractors