Mexican Senate Approves Ratification of ILO’s Convention 98

New Legislation Enacted

On September 20, 2018, the High Chamber of the Mexican Congress approved a bill to ratify the International Labour Organization’s Convention 98 on the right to organize and to bargain collectively. With this approval, the bill now moves to the federal executive branch, which is expected to ratify the Convention. Although the guarantees contained in Convention 98 are consistent with Mexico’s last constitutional reform, the legislature has signaled that they will be incorporated into the Federal Labor Law in a subsequent reform.

New Method to Calculate Overtime

Precedential Decision by Judiciary or Regulatory Agency

Mexico’s Second Chamber of the Supreme Court recently decided that, to calculate the weekly overtime pay, minutes worked exceeding the regular work day must be counted cumulatively for the entire workweek and paid in full hour units. “Surplus” minutes do not constitute time worked beyond the regular work shift and may be considered as the time employees use to start the work day or to leave the workplace. Under this new method, any time period exceeding the legal work day must be considered as overtime and added to complete hours.

New Digital System to Verify Disability Certifications and Other Related Transactions

New Regulation or Official Guidance

The Mexican Institute for Social Security (IMSS) recently announced new digital tools for both employers and insured employees to review records concerning the employees’ disabilities certified by the IMSS, as well as the amount of disability benefits and payment status. Additionally, the new digital tools allow for disability payments to be made via electronic transfers directly to the insured’s bank account, as long as the insured is registered in the system. With this digital system, employers can verify whether the disability status of their employees has been registered with the IMSS.