6 labor policy changes that will affect all companies in 2023

The vacation reform and the Teleworking Regulation are only part of the public policy issues that will mark the business work schedule In 2023, to these must be added, among others, the new model of labor justice and the new rules of union democracy that are already in force throughout the country.

Within the framework of the event Relevant changes in the world of work in Mexicospecialists from the EY firm agreed that next year will represent new challenges in the transformation of the world of work due to regulatory changes that will impact most companies or, in some cases, all of them.

“Faced with this scenario, companies should take advantage of the end of the year to take a break and analyze their employment strategy for 2023and incorporate in it those issues that could represent important effects for the organization, especially due to adjustments in terms of payroll, compensation and compliance, among others”, indicated Luis Peña, partner of People Advisory Services-Social Security and Compensations of the signature.

What’s coming for the work schedule for next year?

» 1. Sanitary measures

Last October, the federal government modified the sanitary measures against Covid-19 for workplaces. With these changes, the use of face masks is no longer mandatory in companies and has become optional. However, the dissemination of information among employees about symptoms and infections remains a mandatory measure.

“Basically it is to make flexible or reduce the measures against the pandemic. Previously there were many more obligations, some of them are removed and some are made optional. Now what the focus is on is training, information and communicating to workers what the contagion mechanism is and the best practices to avoid contagion,” said Alejandro Caro, partner at EY Laboral.

The Mexican Association in Human Resources Management (Amedirh) warned that if the coronavirus becomes an endemic disease, management in the workplace will imply a change of perspective, with measures such as permanent monitoring, campaigns and internal communication that promote security and trust, crisis containment and a continuity plan to meet the demand for talent in crisis environments.

» 2. Teleworking NOM

The Ministry of Labor and Social Welfare (STPS) presented in the middle of this year the project for Official Mexican Standard 037, the instrument that will regulate health and safety conditions in teleworking. The public consultation stage has already concluded and all that remains is for the Consultative Committee that prepared the NOM to approve the final version.

“Workers must be informed of the risks to which they are exposed and the measures they must take to avoid them and, give them the proper tools to carry out their work safely,” said the firm’s specialist.

The rule will come into force at the start of the year and companies that have employees who work more than 40% of the working day remotely must comply with the new measures. An important change, explained Alejandro Caro, is that the NOM will force companies to have a mechanism so that workers who suffer from violence in the home can return to face-to-face work.

“This is in line with what the law says, that the teleworking must be reversible. So, it is important that employers know that in certain cases it is important to have physical spaces for workers who need to do their work in person,” he added.

» 3. Holiday reform

If the legislative process is concluded, next year the reform would enter into force to double the minimum holiday flat in the Federal Labor Law (LFT). Pending approval in the Chamber of Deputies, the legal modification is a benefit for the workforce, but it also brings challenges for companies.

Jacqueline Álvarez, partner at EY Labor, explained that the increase in the amount of the vacation bonus is one of the impacts that the reform will have for companies, as well as the replacement of employees who will take a minimum rest period of 12 days .

“This initiative is in the Chamber of Deputies, it will continue to be negotiated to see if a escalation period or, to make it more flexible so that the worker and the employer can agree on the days they want to enjoy vacations”, said the specialist.

» 4. Labor justice system

The new labor justice system has been fully operational throughout the country since last October. This means that most of the labor disputes they must exhaust the conciliation stage before initiating a lawsuit in a labor court.

From the perspective of Alejandro Caro, this change is a point that companies must take into account by 2023. “In the experience of Mexico City in the first month of operations, 82% of the conciliatory hearings concluded with an agreement , Yes 82% of conflicts they are avoided with a conciliation, I would say that this change is the most positive and relevant of the 2019 reform because it is a win-win”.

In this sense, the specialist recommended companies to strengthen their labor relations areas. “In the event that no one representing the company attends or that someone without faculties to conciliate attends, it will be deemed not to have appeared and there is a a fine that can reach up to 9,600 pesos. So, trials or conciliatory hearings that can be arranged in a range similar to that of the fine for the mere fact of not appearing or appearing without faculties, we could receive a fine that can be used in something more productive such as a conciliation arrangement.

» 5. Union democracy

On May 1 of next year, the deadline for unions to legitimize collective bargaining agreements expires, an obligation established with the 2019 labor reform that included free, direct, secret and personal voting for union democracy processes.

“This six-year term has seen many movements for employers in terms of labor legislation. One of the main themes is undoubtedly the reform to Collective negotiation. Workers have the right to choose their unions and have certainty about the content of collective contracts”, explained Jacqueline Álvarez.

The news union democracy rulespointed out the specialist, imply that companies avoid any action that can be interpreted as interference in the collective life of workers.

“Today, companies must allow their workers to take the pertinent actions if they want to legitimize their collective agreement, if they want to continue with the same union or remain union-free, which is also a right. It is important to take these into account three types of law so that companies are clear about the path of union life, without interference, but be prepared for any eventuality”, he added.

» 6. Pension reform

The January 1, 2023 The gradual increases in employer contributions for the workers’ pension begin, which were established with the 2020 pension reform. In this way, when the transitional period ends in 2030, the employer contribution will have gone from 5.1 to 13.8 % of contribution base salary.

“The positive part is that there is an increase in contributions for the retirement of workers. In more than 20 years of the new system’s existence, no adjustments had been made. The painful part is that it is only up to the bosses to do this additional contributionbut it was necessary to make an increase and it will also be necessary for the federal government at some point to increase the contributions it makes and encourage workers to save,” said Carlos de la Fuente, lead partner of People Advisory Services – EY Social Security.

In a practical case, a company with about 200 workers will have a 6% increase in contributions that it carries out to the Mexican Institute of Social Security (IMSS) and by 2030, the growth of its quotas will be 50% higher. “It is a fairly high figure, I insist, seeing the positive side, it is necessary. But I think that this burden should be redistributed,” said the specialist.