On December 12, 2017, Mexico’s Labor Ministry (known as “STPS” for its acronym in Spanish)1 published in the Official Gazette of the Federation operating guidelines2 for its new online compliance system for employers to report their compliance with the labor law in three key areas: (a) general work conditions, (b) training, and (c) health and safety in the workplace.3

As per the guidelines, the main objectives of the compliance system are for employers to increase their level of compliance with the labor laws by:

  • identifying the labor laws that apply to their respective workplaces;
  • reporting their level of compliance in each of the three areas mentioned above;
  • proposing a timeframe within which the employer can become fully compliant;
  • receiving advice and technical assistance from the Labor Ministry; and
  • engaging in preventive and corrective actions.

Employers may access the online compliance system at the Labor Ministry’s web page (http://cumplilab.stps.gob.mx/), where they can register their workplaces and receive an access code and password generated via the same portal. The portal allows employers to self-report their compliance status in each of the three areas (i.e., general work conditions, training, and health and safety). The system will generate a receipt of acknowledgement upon completion of each area report.

Each report will focus on one of the three areas, as follows:

  1. General Work Conditions. This report will evaluate whether the employer is complying with the legal requirements related to work shifts, rest periods, vacations, salary, Christmas bonus, profit sharing, among other terms and conditions of employment.
  2. Training. This report will assess whether the employer is training employees to increase competitiveness and prevent work risks.
  3. Health and Safety. This report evaluates whether the employer is engaging in the necessary risk prevention based on the industrial standards applicable to its workplace.

Although employers may propose a timeframe during which they can become compliant, the timeframe may not exceed one year from the date of the report. If the company fails to abide by any preventive or corrective measures prescribed by the Labor Ministry, the Ministry may remove the employer’s workplace from the online compliance system and initiate administrative proceedings against it.

The guidelines highlight various incentives for employers to use the online compliance system. The system enables the Labor Ministry to rate an employer’s level of compliance on a scale from 0 to 100, the lowest number representing non-compliance and the highest representing full compliance. Incentives include visits for advice and technical assistance, as well as preference to participate in discussion forums organized by the Labor Ministry’s inspection branch. Moreover, employers may participate in courses and receive certifications in the applicable skills and standards as well as compliance recognitions. Additionally, the registered workplaces will not be subject to ordinary inspection visits for one year after completion of the area report. The receipts, acknowledging completion of the area report, may be renewed within 60 days prior to their expiration, although the compliance level must have increased for the receipts to be renewed.