LABOR LAW’S LEGAL Raúl Reyes Villarreal

FRAME LL.B./M.B.A.
Definition of Labor Law.
• Labor Law is the set of principles and rules that tend to make social
justice due within the balance of labor relations, either individual or
union.
• The main goal of Labor Law is to bring balance and protect the
employees and the employers in their constant relationship, through
social justice.
• In addition, Labor Law has to mediate and resolve any and all disputes
within the employers and employees.
Labor Law Theories.
• Private Law theory.

There are some lawmakers and legal experts who assert that Labor Law
belongs in the Private Law section, since the main relationship is
between the employer and the employee, even if the State has a part in
said relationship.
• Public Law theory.

On the other side, some studies uphold that Labor Law is in fact, part of
the Public Law’s sphere, since all regulation comes from the
government’s authority (which has to be obeyed by everyone), as well
as their intervention.
Labor Law Theories.
• Social Law theory.

A third opinion in these matters, is that Labor Law has a tendency to

protect one sector in particular, which is the employee sector, making it
a part of the Social Law branch.
Even if the regulation in Labor Law matters are applicable to work
relationships in general, they tend to prioritize the employee’s rights
(union strikes, collective bargaining, etc.), falling into the category of
Social Law, by definition.
Labor Law in relation with other types of
Law.
• Civil Law.

Since this is the most ancient and primitive type of Law, every other
kind of legal branch, detaches from Civil Law, specially in terms of legal
basic documents and human relationships.
• Mercantile/Commercial Law.

Knowing that Labor Law regulates any and all work relationship, is
coherent to think that Mercantile Law is directly affected by how Labor
Law operates, since every company that has employees will be bound to
Labor regulation.
Labor Law in relation with other types of
Law.
• Constitutional Law.

Both 5th and 123rd articles in the Constitution, construct the idea of a
work relationship, giving the right to every Mexican to have a job and
defining what rules the labor contract must follow.
• Administrative Law.

This type of Law regulates all relations within the State and the citizens,
and one of the most important links between them must be the work
relationship, making this type of Law, a protector for employees rights,
by disposition of the Ley Orgánica de la Administración Pública Federal.
Labor Law’s foundations.
• The Constitution.

Articles 5 and 123 set the tone for work and employment giving the right
to every citizen to have a job and/or practice commerce as well as the
foundation of the Ley Federal del Trabajo.
In article 5, for example, it is set that no person can be denied from
exercising their right to work, that nobody can be denied the fruit of
their labor, and that there can be no slavery.
Article 123, gives the women the right to be on paid leave whenever
they get pregnant, it also prohibits the employment of kids age 14 or
less, and mentions the concept of the minimum wage.
Labor Law’s foundations.
• International Treaties.

Together with the Constitution and the Ley General del Trabajo, they
create the “Supreme Law Union”. International Treaties often help
Mexicans with job opportunities abroad, as well as receive foreign
citizens into our country for work purposes.
In addition, United Nations treaties touch general important topics in
terms of how job opportunities must be gender-free, how kids should be
benefited from the work of their parents, how employees must be
insured, etc.
Labor Law’s foundations.
• Contrato-Ley and Collective Agreements.

These agreements are such an important source of regulation, since

they are negotiated by the Trade Unions, and often establish the general
criteria for the work relationship, such as wages, benefits, working
hours, etc.
• General Rules.

There are several Rules surrounding the main legislation, which is the
Ley Federal del Trabajo, in a way that they help and attend to very
specific matter of the employer-employee relation, depending of the
line of work.
Labor Law’s foundations.
• Ley Federal del Trabajo.

This is the basis of every work relation in Mexico, as it outlines and

defines how the employer and the employee must act in every way,
being the maximum legislation in labor matters, just behind the
Constitution.
Every labor relation in the country must be bound to this Law, as it
specifies in a general manner, what the salary is, what is the maximum
amount of working hours, the minimum age for someone to work, etc.
Notwithstanding the above, the Law is in a constant helping relation
with the other foundations.
Labor Law’s foundations.
• Ley Federal del Trabajo.

The first Law was published in 1931, as a development from article 123
of the Constitution. In 1970, the second and current Law was published,
abrogating the last one.
It is currently composed by 1010 articles, and the last update or
modification was made in 2019. Prior to this, the last update was made
in 2012.
Labor Law in the national context.
• Every controversy that arises by the working relationship, must be
judged by the Juntas de Conciliación y Arbitraje (JCA), either federal or
local.
• Every JCA must divide itself into the industries or services that the Law
states, in order for them to review each case in accordance of the
working context (in conformity with fraction XXXI of article 123 of the
Constitution).
Labor Law in the national context.
• The government agency in charge of making sure that equal
opportunities arise for every Mexican, as well as working in terms of
creating new job opportunities in every field, is the Secretaría del
Trabajo y Previsión Social (STPS).
• In addition, they are in charge of making sure that every company
respects their employees’ rights and applying the corresponding
sanctions whenever they are not bound to the Law.
• Retirees’ rights will be protected by the work of the STPS.
Labor Law in the international context.
• Every country has its own labor regulation, however, there are
international treaties, as it has been said, where work relationships
between citizens from different countries are defined and ruled over.
• The International Labor Organization (ILO) was founded by the
Versailles Treaty after WWI, as a United Nations agency that
establishes international labor standards and promotes equality and
social protection for everyone.
Labor Law in the international context.
• Aside from the treaties, the same Ley Federal del Trabajo (in its 28th
article) outlines some rules about how employers and employees must
engage when they provide or receive services in and out the country.
• In the U.S., the United States Department of Labor is responsible for
occupational safety, determining working hours, wages and
protecting pensioners’ rights.
 ELEMENTS IN LABOR Raúl Reyes Villarreal
RELATIONS, WORK AND LL.B./M.B.A.
WORK AGREEMENT
Personal elements in Labor Law.
• There are several subjects surrounding Labor Law and Labor
relationships, however, the essential personal elements in Labor Law
are the employee and the employer.
• To this effect, work means every human, intellectual or material
activity, regardless of the technic or professional preparation required
to do so. (Article 8 LFT).
Personal elements in Labor Law.
• Employee.

An employee is a person who provides personal subordinated work to

another person or company.
• Trusted Employee.

This category of employment depends on the nature of the role played

by the employee within the company, and not as a designation.
According to article 9 of the LFT, trusted roles are direction, inspection,
vigilance and taxation, whenever they are general, and all those that are
related to personal works by the employer within the company.
Personal elements in Labor Law.
• Employer.

The employer is the person or company that utilizes or requires the

work from one or more employees.
• Employer’s representatives.

Directors, administrative staff, managers and some other employees

that play an important or managing role in the company, represent and
bound the employer in all their matters.
Personal elements in Labor Law.
• Intermediaries.

These are the persons that intervene in hiring or other tasks by the
employer. However, they will only be considered intermediaries, if they
do not hire the employees for themselves.
In other words, whenever they hire employees for the use of someone
else, they will be considered employers.
Intermediaries will never receive their commission or payment with
charge to the employee’s payment.
Personal elements in Labor Law.
• Company vs establishment.

According to article 16 of the LFT, a company is the economic union of

production and/or distribution of goods/services, taken as a whole.
On the other hand, an establishment is the technical place that as a
branch, agency or other similar form, is an integrating part of the
company, that helps it fulfil its purpose.
Work relationship.
• This relationship is the consequence of work plus the payment of
salary, meaning that there could not be a work relationship without
work or without payment for such work.
• This relationship has the following elements:

Personal elements Regulated elements

Employee Subordinated work
Employer Salary
Work relationship.
• Subordination, in accordance with the Supreme Court, means a legal
power of control or command from the employer to the employee,
which implies a duty from the employee.
• Prohibitions.

Pursuant to article 22 and 23 of LFT, children age 14 or less can not be

employed, and all children between ages 15 and 16 will need an
authorization by their parents or tutors.
Other types of working relationships.
Contract Parts Consideration Regulation
Service Agreement - Client Professional fees Civil Code
- Professional
Commercial - Broker Commercial Ley General de
Commission - Owner Commission Sociedades
Mercantiles
Asociación en - Associate Utilities Ley General de
Participación - Associative Sociedades
Mercantiles
Work conditions.
• The work conditions must be stated either in the Collective
Agreement or the Individual Agreement, nonetheless, it must include
every specifications about how the employee must work.
• Even if the parties concur on something outside from the Collective
Agreement or the law, this will not be valid, since the employee can
not waive any rights given by the law or the Collective Agreement.
Work agreement.
• The work agreement captures the essence of the labor relationship. In
it, there should be every detail that embodies the relation between
the employer and the employee, in respect to names, nationalities,
genders, marital status, addresses, period of agreement, duration of
the working day, place or places in which the employee has to work in,
day and place of payment, any extra payment the employer has to
make in order for the employee to work, etc.
Work agreement.
• To end a work agreement, there has to be a termination agreement,
signed by both parties, in which they establish why the relationship is
coming to an end, specifying every payment that has to be made in
order for the relation to finish properly, including vacations, bonuses,
etc.
• This termination agreement has to be ratified by the authority in the
Junta de Conciliación y Arbitraje.
DURATION OF WORK
RELATIONSHIPS, Raúl Reyes Villarreal
CONDITIONS AND LL.B./M.B.A.

SALARY
Duration of agreements.
• According to the LFT, work relationships can be:

- For a particular job or for a definite period of time.

- For a season.
- For an indefinite period of time.
- For initial training.
• If the contract does not explicitly states one of the above conditions,
the work relationship shall be for an indefinite period of time.
Duration of agreements.
• Once the period of time has ended, if the employee is still doing
his/her job, or continues to work, the relationship shall be deemed as
automatically extended for all the time he/she continues working,
according to article 39 of the LFT.
• Pursuant to article 40 of the LFT, no employee must be obliged to
work for more than a year.
• Whenever the contract is for an indefinite period of time or the period
exceeds 180 days, there could be a trial period, however, this period
shall not be longer than 30 days.
Duration of agreements.
• In the cases of managing, administrative or directive roles, the trial
period could be extended to up to 180 days.
• During the trial periods, every worker shall enjoy their salary, social
security and benefits, according to their position.
• Once the trial periods are over, the employer could end the work
relationship, but only if it is proven that the employee did not satisfied
the job requirements. To this end, the employer must have the opinion
of the Comisión Mixta de Productividad, Capacitación y Adiestramiento,
according to the LFT.
Duration of agreements.
• The “Initial Training Agreement” is the labor contract that regulates
the relationship between an employer and an employee, whenever
the employee sole purpose is to acquire knowledge or abilities
necessary to fulfil certain position.
• The duration of this type of contract or agreement shall not be longer
that 3 months, or 6 months in the case of managing/directing roles.
• Once the Initial Training Agreement is over and the employee gets the
labor contract he/she was supposed to get, there shall not be any trial
periods.
Duration of agreements.
• Once the trial periods or the training agreements are over, the time
worked on them, shall be computed or taken into account to the
effect of seniority and compensations.
• Any employer substitution will not affect the work relationship with
the employee, and the old employer shall be responsible to the
employees jointly with the new employer, for 6 months after the
employees receive notice of said change.
Duration of agreements.
• The following are some termination causes, that do not imply any
responsibility on both the employer nor the employee, according to
the LFT:
- Contagious disease by the employee.
- Temporal incapacity occasioned by an accident or a disease that
does not constitute a working risk.
- Preventive prison.
- The employee’s arrest.
Work Conditions.
• Article 56 of the LFT sets the tone for work conditions in Mexico,
stating that any and all work conditions shall be in accordance to the
equality principle between men and women, and in no case, these
conditions will be inferior to those stated by the Law.
• In addition, work conditions shall be established without taking into
consideration gender, age, ethnic condition, health conditions or
marital status, but in accordance to the job’s needs and level of
importance to its tasks.
Work Conditions.
• The working day is the timeframe in which the employee will be at the
employer’s disposition to provide his services.
• The working day shall be set by the employer and the employee, however,
this agreement will not be above the Law, and the working day will not
exceed the maximums set by the LFT.
• According to article 60 of the LFT, there are 3 kinds of shifts:
- Day shift, which comprehends from 6am through 8pm.
- Night shift, comprehending from 8pm through 6 am.
- Mixed shift, a set of mixed hours between the day and the night shift, as
long as it does not include more than 3 hours of the night shift. In case of
the latter, such shift shall be considered a night shift.
Work Conditions.
• According to article 61 of the LFT, the maximum hours in a working
day shall be:
- 8 hours, in the day shift.
- 7 hours, in the night shift.
- 7 and a half, in the mixed shift.
• Pursuant to article 63 of the LFT, during the working day hours, there
should be at least one half hour break. In addition, if the employee is
not in possibility of going out to rest/eat, such time shall be deemed as
part of the working day hours.
Work Conditions.
• On the other hand, if an employee is in possibility of going out to
rest/eat, this shall be considered as a working day break.
• In cases of disaster or imminent risk to the employees, the employer
or the company, the working day shall be extended for the amount of
time needed to resolve or end the issue. This hours shall be payed as
regular working hours.
Work Conditions.
• In other cases, the working day hours, can be extended, however, not for
more than 3 daily hours nor for more than 3 times a week. This hours shall
be payed double.
• If an employee works for more than 9 extra hours in a week, such hours
shall be payed triple, notwithstanding the according penalties to the
employer.
Work Conditions.
• In article 69 of the LFT, the resting days are established as follows:

- Weekly, aiming at Sunday.

- Mandatory, those set by Law in which labor must be stopped, or in
order to celebrate something.
- Vacations.
• For every 6 working days, the employee shall receive at least 1 resting
day, with full payment.
• In cases of continued labor, the employee and the employer shall
choose the resting days within the week.
Work Conditions.
• If an employee has to work on a Sunday, the weekly payment shall be
added a 25%, as a “Sunday Bonus”.
• If an employee works on his resting day, he/she shall be payed double
for such day. In addition, if the resting day in which he/she worked is a
Sunday, he/she shall be granted the Sunday Bonus, as well.
• In cases of working on a Mandatory day, the employee will be entitled
to double payment for said day.
Work Conditions.
• Vacations.

According to article 76 of the LFT, employees that have more than a

year working for an employer, shall be granted payed vacations, which
will be distributed as follows:
Years of labor Vacation days
1 6
2 8
3 10
4 12
5 to 9 14
10 to 14 16
15 to 19 18
Work Conditions.
• Vacations.

In cases of seasonal employees, they are entitled to vacation days in

proportion of their working days.

i.e.
137 x 6 / 365 = 2.25
Working days x 6 vacation days (first year) / 365 = Amount of days.

Vacations shall be granted within 6 months after the anniversary of the

employee.
Work Conditions.
• Vacation Bonus.

Article 80 of the LFT sets a Vacation Bonus, which will be no less than
25% over the corresponding salary of the employee’s vacation days.

i.e.
$95 x 16 x 0.25 = $380.00
Daily salary x Vacation days x 0.25 = Vacation Bonus.
 SALARY AND
RESCISSION. RIGHTS,
OBLIGATIONS AND Raúl Reyes Villarreal
PROHIBITIONS FOR LL.B./M.B.A.

EMPLOYERS AND
EMPLOYEES
Salary.
• Pursuant to article 82 of the LFT, salary is the retribution which the
employer has to pay the employee for his/her work, and it shall be set
by:
- Unity of time.
- Unity of work.
- Commission.
- Raised price.
- Any other way.
Salary.
• Unity of time.

This type of salary comes to happen when the employer pays the
employee according to the number of hours in which the employee is
actively working or at the employer’s disposition.
Unity of time salary shall be payed daily, weekly, fortnightly, or monthly,
and will always be in accordance with the minimum wage established in
the corresponding area.
Salary.
• Unity of work.

Type of salary in which the employee gets paid as the result of his/her
actual work through the working day, and it is calculated according to
made units (meters, liters, kilos, pieces, parts, completed units, etc.)
Whenever this type of salary is chosen, the time of disposition, quantity
and quality of the tools used for the work, will have to be stated in
writing.
i.e. The employee shall be entitled to $10 for each button sewed in a
jacket factory, payable weekly. He/she sewed 50 buttons, receiving $500
for 6 working days.
Salary.
• Commission.

According to the LFT, this type of salary shall be paid as a proportional

part of the corresponding service/merchandise/asset that the employee
is working with. However, minimum wages and working days will always
be in accordance to the LFT.
i.e. The employee is selling insurance packages, for which he will receive
an equivalent of 20% over each package sold.
Salary.
• Raised price.

According to the Law, this salary rotates around the fact that the
employer has to pay the employee over a finished work. The parties
agree to a final payment (salary), which will be payed once the
employee finished such work or job.
i.e. An employee will be payed $7,200 over a cotton crop, which lasts 6
weeks to harvest, and the employee has to work a day shift for 6 days a
week.
Salary.
• Integrated Salary.
In accordance to article 84 of the LFT, salary will be integrated by:
- Cash on daily quota.
- Gratifications.
- Perceptions.
- Room.
- Bonuses.
- Commissions.
- Benefits in kind.
- Any other that the employee receives for his/her work.
Salary.
• No one can renounce salary, however, reductions can be made
according to the Law, and to the following cases:
- For alimony, in accordance to final sentence by a civil judge.
- To pay rents, whenever the employer is renting room to the employee
(will not exceed 10% of the employee’s salary).
- To pay for INFONAVIT loans (will not exceed 20% of the employee’s
salary).
- To pay for loans intended to the acquisition of goods or services. (will
not exceed 10% of the employee’s salary).
Salary’s characteristics.
• It shall never be below the minimum wage established by the
government.
• Has to be paid in national currency.

• It shall be the same to everyone according to position and working

days.
• Payable within working hours or immediately after the working day.

• It has to be paid weekly for workers who have material tasks, and
fortnightly for every other employee.
Salary’s characteristics.
• According to article 108 of the LFT, it has to be payed on the working
place. However, article 101 contemplates wire transfers.
• Salary has to be payed directly to the employee, except in cases of
proven impossibility, and through a legal representative according to a
signed power of attorney, with the presence of two witnesses.
• Whenever the employer is declared in bankruptcy, the employees
shall be first in the line of debts, therefore getting payed before any
other creditor.
Minimum wage.
• The minimum wage is defined as the minimum amount of salary that
an employee should be payed for his/her work, through a working day.
• Minimum wage is divided into general and professional categories.
According to the Comisión Nacional de los Salarios Mínimos, a list is
published yearly, in which general and professional minimum wages
are defined for every worker in the country (divided mainly by a list of
border cities/towns).
Christmas Bonus.
• Pursuant to article 87 of the LFT, employees will be entitled to an
annual Christmas Bonus (aguinaldo), which has to be payed before the
20th of December, and equivalent to 15 days salary, at least.
• Those employees who did not work for the whole year, will be entitled
to a proportional amount of such bonus, according to the working
time.
Rescission.
• Rescission is the process for which the labor agreement shall be
ended, according to one of the parties, either the employer or the
employee.
• In this type of termination, the injured party seeks to end the
relationship or agreement in accordance to the Law, because the
other party breached one or more clauses in the contract.
• Rescission shall not bring any responsibility for the injured party.
Rescission.
• Rescission causes for the employer:

- The employee’s deceive in any reference or documentation (this cause

should only last through the first 30 days of employment).
- When during the working day, the employee insults or treats in a
violent way, any of the employer’s representatives, the employer’s
family or the employer himself, whenever the employee is not acting
in self defense.
- When the employee insults or treats in a violent way any of his/her co-
workers.
Rescission.
• Rescission causes for the employer:

- When the employee, out of the working day, acts in a violent manner
against the employer, the employer’s representatives or the
employer’s family, and such violent acts make it impossible for the
work agreement to be fulfilled.
- Whenever the employee, intentionally, damages any of the work
tools, buildings or assets.
- Whenever the employee, with negligence, damages any of the work
tools, buildings or assets.
Rescission.
• Rescission causes for the employer:

- Sexual harassment.
- Whenever the employee, through negligence, puts his/her co-workers
in danger.
- When the employee reveals confidential information.
- Whenever the employee has three unjustified or unapproved
absences, within 30 days.
Rescission.
• Rescission causes for the employee:

- When the employer deceives him/her about the working conditions

(this cause should only last through the first 30 days of employment).
- Whenever the employer, the representatives or family, during the
working day, acts in a violent manner against the employee or his/her
family.
- Whenever the employer diminishes the salary.
- Whenever the employee does not get his/her salary on the agreed
time and place.
Rescission.
• Rescission causes for the employee:

- Whenever the employee or his/her family is in danger because of poor

health conditions in the workplace.
- When the employer with imprudence or carelessly endangers the
employee.
- Whenever the employer wants the employee to act or do something
that undignifies him/her.
Compensation.
• The employee shall be entitled to compensation (indemnización),
whenever he/she is in rights to rescind the work relationship, or
whenever the employer fires him/her without justification.
• Such compensation will be integrated as follows:
- Constitutional compensation of 3 months of salary.
- Vacation days not used.
- Proportional Vacations Bonus.
- Proportional Christmas Bonus.
- Seniority Bonus (when applicable).
- Overdue Salary/Payment.
- The equivalent to 20 days for every year of work (only when the
employee rescinds).
Termination.
• The following are termination causes:

- Mutual consent of both parties.

- Death of the employee.
- The end of the work or the duration of the agreement.
- The sudden mental or physical incapacity by the employee to fulfill
his/her job.
- Acts of God or death of the employer, that cause the work to be over.
Employer’s obligations.
• According to article 132 of the LFT, the following are employer’s
obligations:
- Respect the employees, not treating them rudely.
- Give the employees a written notice of their working days and salary,
every 15 days.
- Give the employees the necessary time for voting, whenever needed.
- Provide training and coaching to all employees.
Employer’s obligations.
• According to article 132 of the LFT, the following are employer’s
obligations:
- Have adequate facilities for handicaps, whenever the company’s
number of employees is above 50.
- Protect pregnant women.
- Provide a paternity leave of 5 payed days to every father, either by
adoption or by birth.
- Contribute to the promotion of cultural and sport activities for the
employees.
Employee’s obligations.
• According to article 134 of the LFT, the following are employee’s
obligations:
- To give notice to the employer, whenever he/she is due to be absent.
- Give notice to the employer, whenever he/she has a contagious
disease.
- Keep secret or confidential ever technical aspect of the products,
services or processes for which the company could be harmed if
known.
Employee’s obligations.
• According to article 134 of the LFT, the following are employee’s
obligations:
- To provide his/her work in the time and place agreed with the
employer.
- To be obliged or in subordination to the employer at every moment
during the working day.
- To have good manners or be decent in the workplace.
UTILITIES, TRAINING, Raúl Reyes Villarreal
PRODUCTIVITY AND LL.B./M.B.A.
SENIORITY
Utilities.
• Employees must receive a part of the utilities of every company, in
accordance to the Law and to the Comisión Nacional para la
Participación de losTrabajadores en las Utilidades de las Empresas
(CNPTU).
• To every effect, Utilities will be taken from the taxable income of a
company.
Utilities.
• Employees have the right to object the employer’s tax declaration to
the SAT, as stated in article 121 of the LFT, in accordance with the
following:
• The employer has to render a copy of his tax declaration to every
employee within 10 days of its presentation to the SAT.
• 30 days after that, the employees’ union or the majority of the
company’s employees shall make written observations to the
authority, regarding said declaration.
• After that, the authority shall resolute if the employees are right in
their claim, or if the employer rendered the right amounts and
information.
Utilities.
• Employers must pay Utilities within the next 60 days of their
respective tax declaration, even if there are pending observations or
objections from the workers.
• In case of an increase of the taxable income, after the authority’s
resolution over a dispute/objection from the workers, the employer
has 60 days to pay the differential derivative from such increase
• If any employee is unable to claim his/her utilities, they shall be
incorporated to next year’s utilities.
Utilities.
• Utilities will be given in two halves:

• The first one shall be distributed equally among every worker

according to the days worked within the corresponding year.
• The second one shall be distributed according to the salary
received by each employee.
Utilities.
• Exceptions.
The following are exempted cases to distribute Utilities:
• Newly created companies within the first year.
• Newly created companies dedicated to the elaboration of a new
product, within the first two years.
• Extraction companies, within the period of exploration.
• Private Assistance Institutions.
• IMSS and any other public institute.
• Any company that does not have the minimum amount of capital
required by the industry, according to the STPS.
Utilities.
• Who is entitled to receive Utilities?

- Trusted employees who do not earn more than the highest paying
union employee.
- Any working mother, even on her maternity leave.
- Construction workers even after they finished the job.
- NOT the directors, administrative staff nor the managers.
- NOT the domestic employees.
Productivity and Training.
• According to article 153, fraction I, Productivity will be the result of
optimizing any and every human, material, finance and technological
factor that concur in a company, in order to promote its
competitiveness and capacity.
• According to the Cambridge Dictionary, to train, means the process of
learning the skills you need to do a particular job or activity.
Training.
• The purpose of training is to prepare the employees once they are
newly signed to the company, in order to occupy their position in a
better way. The general idea of any training is for the worker to
become as much as an expert as he/she can be.
• The training of an employee has the ultimate goal of boosting their
productivity along with enhancing their knowledge and expertise on
any given area.
• All Collective Agreements are required to have clause regarding
training programs for the employees.
Training.
• By law, every employee must receive training, not only when newly
signed to the job, but constantly, in order to fulfil every aspect of the
worker’s life and heighten his/her lifestyle.
• All trainings must be attended during working hours, unless the
employer and the employee agree upon another timing.
• In case that the nature of the training is not regarding the employee’s
duties within the company, such training shall be outside of working
hours.
Training.
• Employee’s obligations regarding training:

- To be in time to every course, session, activity or class.

- To attend to every indication from the person who is giving the
training.
- To sit/take the corresponding exams evaluating their knowledge and
aptitudes regarding the training.
Productivity Plans.
• To elevate the productivity within the companies, the law compels
them to:
• Make an objective diagnosis of the company’s situation in terms of
productivity.
• Adequate the material, technological and finance conditions to
increase the productivity.
• Better the coordination systems between the employees.
• Periodically evaluate the development and compliance to the
productivity programs.
• Better the work conditions as well as the hygiene conditions.
Preference.
• Pursuant to article 154 of the LFT, employers must prefer:

- Mexicans to non-mexicans.
- Those who served them for longer.
- Those who do not have an income and have to support a family.
- Those who finished their basic education.
- Those who have more knowledge to perform a particular job.
- Unionized employees from those who are not.
Preference.
• According to article 159 of the LFT, definitive posts, provisional posts
that last more than 30 days, and new creation postings, shall be
covered with:
• The immediate subordinated worker.
• The most capable one.
• The one with the most seniority.
• The most apt.
• The most productive.
Seniority Bonus.
• Every base employee that has over 15 years in the company, and
separates himself from the company, either wrongfully or by mutual
consent, shall receive a Seniority Bonus, that consists in 12 days of
salary, for each year of employment.
• If the salary of such employee exceeds the minimum wage by double
the corresponding quantity, this shall be considered the top amount in
terms of calculating the Seniority Bonus.
 WOMEN AND MINORS’
WORK, COLLECTIVE
RELATIONSHIPS, Raúl Reyes Villarreal
COLLECTIVE AGREEMENT, LL.B./M.B.A.
INTERNAL REGULATION
AND STRIKES.
Women’s rights.
• According to article 164 of the LFT, all women shall have the same
rights and obligations as men.
• Nevertheless, women shall be entitled to special rights as well,
whenever pregnant. These special rights have as an objective to
protect the life of the child as well as the mother, protecting the health
conditions of both, and protecting the women’s salary, rights and
benefits.
Women’s rights.
• Pregnant women or those who are in lactation phase, will not work in
dangerous or unhealthy environments, will not work industrial night
shifts, will not work in commercial branches after 10pm, and will not
work extra hours.
• A dangerous environment shall be deemed so, whenever it risks the
mental or physical health of the pregnant/lactating woman or the
product.
Women’s rights.
• The following are mothers’ rights:

• During pregnancy, they will not perform any work that requires
physical effort, like pushing or lifting heavy stuff, standing for long
hours, etc.
• They shall enjoy a 6 week break prior to birth, and a 6 week break
after birth. Upon the mother’s request, 4 weeks from the 6 week
break prior to birth, can be moved to after the birth.
• In case of adoption, they shall receive a 6 week break after
adoption.
Women’s rights.
• The following are mothers’ rights:

• The mentioned breaks shall be extended for as long as needed in

cases where health issues arise. In such cases, they will be entitled
to 50% of their salary.
• During lactation, mothers shall have an extra 1 hour break
everyday, for 6 months, in order to feed their child.
• To come back to their job, as long as a whole year has not elapsed
since birth.
• To have their pre and post birth breaks counted in their seniority.
Minors’ rights.
• Those who are between 15 and 18 years of age, shall have a medical
certification in order to work.
• Minors are prohibited to work in:

• Non industrial establishments after 10pm.

• Establishments that sell alcoholic beverages to stay.
• Places that may affect their morality and good behavior.
• Dangerous or unhealthy places.
Minors’ rights.
• Pursuant to article 176, the following are some dangerous and
unhealthy work conditions:
• Exposition to noise, vibrations, radiation, abnormal pressure.
• Chemical agents that contaminate the work environment.
• Dangerous wildlife, or harmful flora.
• Nocturnal activity after 11pm.
• Working in heights or small spaces.
• Welding and cutting.
Minors’ rights.
• Pursuant to article 176, the following are some dangerous and
unhealthy work conditions:
• Extreme climate conditions.
• Gas, electric, mining, nuclear or cement industries.
• Tobacco industries.
• Submarine or underground works.
• The handle of motorized vehicles.
• The handle of sharp objects.
Minors’ rights.
• Those who are less than 16 years of age, shall not work for more than
6 hours a day, and they shall enjoy 1 hour breaks, every 3 hours.
• Those who are less than 18 years of age, will not work extra hours nor
on Sundays, nor holidays. In case of working extra hours, minors shall
be entitled to 200% of their salary for such extra hours or days.
• Minors shall receive 18 days of vacations every year, at least.
Minors’ rights.
• Employers that have employees under 16 years old, are obliged to:

• Demand the certifications that the law requests.

• Have a list of every worker under 16 years of age, with all their
documentation, including their position, salary, working hours,
etc.
• Distribute the work load in order for the employees to fulfill their
school/academic demands.
• Give training.
• Provide the authority any information they need.
Collective relationships.
• The Constitution through article 9, entitles every Mexican to associate
with any lawful objective.
• In light of this, employers and employees are able to form associations
that have as an objective to protect their legal interests.
• According to article 356 of the LFT, a Union is the association of
workers or employers, constituted for the study, betterment and
defense of their respective interests.
Unions.
• Unions can not oblige any worker to be a part of it, or deny the
adherence of any worker.
• They will not impose penalty fees to the employees who try to
separate from said Union. Any disposition that establishes so, shall be
deemed void.
• Unions have freedom to write their social bylaws, as well as to choose
their representatives, organization chart and activities.
Unions.
• Employees Unions, can be:
• Gremial, those that compose from one trade or profession.
• Of a company, those that are formed from one single company.
• Industrial, those formed by workers from two or more companies from
the same trade or profession.
• National industry, those composed by workers from one or more
companies from the same trade, but established in two or more
States.
• Of several trades, those formed by workers from various trades or
professions, as long as the workers from one trade are less than 20.
Unions.
• Employers Unions, can be:

• Formed by employers from one or more industries.

• Formed by employers from one or more industries from two or more
States.
Unions.
• Workers older than 15 years of age may be a part of any Union.

• Trusted employees may not be a part of Unions. In case of a promotion to

a trusted employee spot, the Union may have a set of rules for such a
particular case, in which a unionized employee is promoted.
• Unions will be constituted with at least 20 active employees or 3
employers.
• Unions will be registered into the STPS whenever federal, and on the JCA
whenever local, for which they will provide the corresponding constitutive
act.
Unions.
• The corresponding authorities shall make public any information regarding
Unions, according to the Ley Federal de Transparencia y Acceso a la Información
Pública.
• The Union’s registration shall contain:
• Address.
• Register number.
• Name of the Union.
• Name of the Executive Committee and its term.
• Number of partners.
• Trade to which they belong.
Unions.
• Registration shall be denied whenever:

• The Union does not set an objective in its constitutive act.

• The minimum number of workers/employers is not met.
• The required documents for registration are not exhibited.

• Registration shall be cancelled whenever:

• The society dissolves.

• The legal requirements are not met anymore.
Unions.
• Foreign employees shall not be a part of the Union’s administration.

• The Union’s administration shall render to the General Assembly, at least

every 6 months, a detailed inform in which they provide a full story of
every action regarding the social patrimony. At any moment, any
employee will be able to request such information.
• Unions will represent every member in their negotiations. Unless the
worker asks for an opportunity to negotiate for himself/herself.
• The Unions will be represented by its General Secretary, appointed by the
administration.
Unions.
• Unions will be able to:

• Acquire goods.
• Acquire real estate that are directly needed for their purpose.
• Defend their rights and obligations in front of every authority.

• Unions are prohibited to:

• Intervene in religious matters.

• Act as merchants.
Unions.
• Unions are obliged to:

• Render information to the authorities.

• Inform the corresponding authority any change in their administration.
• Inform the authorities all activation and deactivation of members.

• Unions will be dissolved when:

• Two thirds of the members vote for it.

• The duration of the Union is finalized.
Collective Agreement.
• A Collective Agreement is that which is entered by one or more
workers’ unions, and one or more employers or one or more
employers’ union, with the intention of binding one or more
companies.
• Any employer who employs unionized workers shall be obliged to
enter a collective agreement whenever asked by the union. If the
employer refuses to do so, the workers shall be entitled to go on
strike.
Collective Agreement.
• Formalities.

The Collective agreement shall be entered in writing, and in triplicate,

one for each party and one for the Junta Local/Federal de Conciliación y
Arbitraje, accordingly.
The JCA (local or federal) will make public every collective agreement,
and will be obliged to extend a copy of such agreement to everyone
who wants one.
Collective Agreement.
• Requirements.
The Collective Agreement shall include:
• Names and addresses of the parties.
• Companies it binds.
• Duration (either temporary or undetermined).
• Working days.
• Resting days and holidays.
• Salaries.
• Training clauses.
Collective Agreement.
• The Collective Agreement can include an exclusivity on hiring
unionized workers only. However, this shall not be applicable to not
unionized workers who are already on the payroll at the moment of
entering the agreement.
• Collective Agreements will be applicable to every worker on the
company, unionized or not.
• Collective Agreement shall be subject to changes or revisions,
according to the LFT.
Collective Agreement.
• In the Collective Agreement’s revision, the following shall be
applicable:
• If entered by on workers’ unions or one employers’ union, any of
the parties shall ask for revision.
• If entered by two or more workers’ unions, revision will take place
whenever the solicitants constitute at least 51% of all unionized
members.
• If entered by two or more employers, revision will take place
whenever solicitants have at least 51% of affected workers by the
agreement.
Contrato Ley.
• A Contrato Ley is that which is entered by one or more workers’
unions, and two or more employers or one or more employers’ union,
with the intention of binding one or more States, even the whole
country.
• The workers’ unions who represent two thirds of one industry in one or
more States, may request a Contrato Ley.
Internal Work Regulation.
• The Internal Work Regulation is the set of mandatory dispositions for
workers and employers in the development of their respective work
within the company or a particular branch.
• The Internal Work Regulation shall consider:

• Working hours, as well as break hours.

• Definition of the workplace.
• Day and place of payment,
• Permits and licenses.
• Disciplinary processes and dispositions.
Internal Work Regulation.
• The IWR will be made by a Mixt Commission created between
representatives from both the employer and the employees.
• Once the IWR is created, it shall be deposited and registered in a Junta
de Conciliación y Arbitraje.
• The Internal Work Regulation shall not have any contradictory
disposition against the LFT, a Contrato Ley or a Collective Agreement.
• The IWR shall be public and visible in the JCA, as well as in the
workplace. One copy of the IWR shall be given to every employee.
Strikes.
• A Strike is the temporal suspension of work, taken by a coalition of
workers. Strikes can be made in a whole company or just in a specific
branch or set of branches.
• Strikes must abide to just the suspension of work, and will be
considered as illegal whenever:
• Majority of the strikers perform violent acts against people or
property.
• In case of war, when the workers depend on establishments from
the Government.
Strikes.
• A Strike is a legal cause of suspension of work, for as long as it lasts. To
this end, the Junta de Conciliación y Arbitraje shall respect the workers’
right to strike, and will grant every help they can to ensure their rights
are being protected.
• The suspension of work shall be given whenever the Strike fulfills a
legal objective and the majority of the workers determine the work
suspension.
Strikes.
• The Strikes will have as an objective:
• To balance the diverse production factors, harmonizing workers’ rights
with capital.
• Obtain from the employer(s) a Collective Agreement and demand its
revision.
• Obtain from the employer(s) a Contrato Ley and demand its revision.
• Demand the fulfillment of the Collective Agreement or Contrato Ley.
• Demand the fulfillment of the Utilities.
• Demand the revision of salaries.
• To support another Strike.
Strikes.
• A Strike will come to an end whenever:

• The workers and employers come to an agreement.

• The employer performs the requested points.
• By sentence from the person or commission chosen by the parties.
• By sentence from the Junta de Conciliación y Arbitraje.
INSTITUTO MEXICANO DEL Raúl Reyes Villarreal
SEGURO SOCIAL LL.B./M.B.A.
Legislation.
• The Ley del Instituto Mexicano del Seguro Social is in charge of
guaranteeing the right to health, medical assistance, protection of
welfare and any social service needed for individual and collective
wellbeing, as well as granting pensions, which will be guaranteed by
the government.
Instituto Mexicano del Seguro Social.
• The Instituto Mexicano del Seguro Social (IMSS) is a decentralized
public organism with legal capacity and its own resources.
• The IMSS is entrusted with the power of enforcing, administrating and
organizing social security.
• To every extent, the IMSS will provide an identification document for
every insured worker, so that they can exercise their rights, according
to the Law.
Social Security.
• Social Security covers contingencies and provides services and money
to those entitled.
• The benefits entitled for insured citizens and their beneficiaries,
cannot be seized. Only in cases of alimony, the benefits can be seized
by a judicial authority, up to 50% of the total.
• Social Security comprehends two regimes of insurance:

• Mandatory regime.
• Voluntary regime.
Mandatory Regime.
• This regime covers insurance from:

• Work risks.
• Diseases and maternity.
• Handicaps and life.
• Retirement.
• Day cares and social benefits.
Mandatory Regime.
• The following are subject to Mandatory Regime insurance:

• The persons who according to articles 20 and 21 of the LFT

provide personal, remunerated and subordinated work.
• Partners from Sociedades Cooperativas.
• Those who the Executive Power directly entitles to, via decree,
under the terms of the Law.
• Domestic workers.
Voluntary Regime.
• The following can be voluntarily bound to Mandatory Regime
insurance:
• Workers from family offices, freelancers, small merchants,
artisans, and other non employed workers.
• Ejidatarios.
• Employers who are not a society, with workers on their payroll.
• Workers from public administration who are not subject to social
security rights.
Employer’s obligations.
• The employers are obliged to:

• Register and submit their employees to the Institute, as well as

make notice of every addition and discharge of employees, in no
more than 5 days.
• Have a ledger of every worker, his/her salary, working days, and
any information the Law requests.
• Determine the corresponding quota, and pay it to the IMSS.
• Allow inspections and visits from the Institute, which will be made
according to the Law.
Employee’s rights.
• Employees have the right to request the Institute their inscription,
communicate any modification in their salary and work conditions,
and to present any documentation regarding the latter.
• This right does not exonerate employers from their obligation to do
everything stated in the last paragraph.
• Workers are also entitled to enforce their rights via the IMSS.

• Employees who are fired when they are on leave because of

temporary incapacity, will still have the same rights for the time of
their incapacity.
Confidentiality.
• Documents, data and information given by the employers, employees
and any other person to the Institute, will remain safe and
confidential, and will not be shared in any way, unless:
• There is a trial or proceeding in which the IMSS is a party.
• An agreement was entered into by the IMSS and any other
government body, for the interchange of information.
• The internal comptroller asks for the information.
• In any other case that the Law establishes.
Inscription of salary.
• Insured workers will be registered into the Institute with their real
salary, however, there is a maximum set by the Law, which is 25 times
the minimum wage.
• According to this, no insured worker shall be registered with more
than 25 times the minimum wage, even if said employee earns more
money for his/her work.
Inscription of salary.
• If an employee works for more than one employer, both employers
will contribute separately to the Institute on behalf of the employee,
however, if the salary between both jobs exceeds the maximum set by
Law, employers can pay the maximum amount together, by dividing it
proportionally.
 Raúl Reyes Villarreal
PUBLIC INSURANCES LL.B./M.B.A.
Work risk insurance.
• First of all, the LIMSS defines work risks as the accidents and diseases
that the workers are exposed to, during work or caused by work.
• In the same manner, work accident is defined as any organic injury or
functional disturbance, immediate or posterior, death or
disappearance caused by a crime act, produced in exercise of work or
caused by work, regardless of where and when said work is being
done. In addition, work accidents may be considered as such when
they present themselves on the worker’s way to work from home, or
from work to home.
Work risk insurance.
• Work diseases are defined as any pathological state derived from an
action caused or originated from work performance, or from the work
environment.
• Article 513 of the LFT defines work diseases, however, the list of
diseases is updated every once in a while and published on the Diario
Oficial de la Federación.
Work risk insurance.
• The following are not considered work risks:

• If the accident occurs when the worker is drunk.

• If the accident occurs when the worker is under drug influence,
unless is a prescription medicine, which has to be notified to the
employer in advance.
• If the worker stages the accident.
• If the accident is a result of a fight or suicide attempt.
• If the accident is a result of an intentional felony or crime,
perpetrated by the worker.
Work risk insurance.
• Work accidents or diseases must be notified immediately by the
employer to the IMSS.
• Work risks may produce:

• Temporary Incapacity.
• Total Permanent Incapacity.
• Partial Permanent Incapacity.
• Death of the worker.
• Disappearance derived from a crime act. (a. 477 LFT)
Work risk insurance.
• The insured worker who suffers a work risk will be entitled to:

• Medical, surgical and pharmaceutical assistance.

• Hospitalization.
• Prosthetics and orthopedics.
• Rehab.
• Economic compensation (Indemnización). (a. 487 LTF)
Maternity insurance.
• Maternity insurance’s benefits will begin once the IMSS declares
pregnancy through a certificate. Said certificate will contain probable
date of delivery or birth, which will serve as a reference for the
corresponding 42 day subsidy.
• In case of maternity, the IMSS will provide:

• Obstetric assistance.
• Lactation assistance during 6 months after birth.
• A layette once the baby is born.
Maternity insurance.
• The insured mothers will be entitled to a subsidy of 100% of their
salary during 42 days prior to the date of birth, and for 42 days more
after that.
• Mothers will receive said subsidy if:

• They worked at least for 30 weeks in a 12 month span, prior to the

subsidy.
• The IMSS certified the pregnancy and probable date of birth.
• The pregnant employee did not work during her pregnancy break.
Disease insurance.
• Disease’s insurance benefits will begin once the IMSS certifies the
disease through a certificate.
• The Institute will determine if hospitalization is necessary, whenever
needed. For hospitalization, the worker’s approval is needed, unless
the nature of the disease makes it necessary.
• Under age employees will need consent from their parents or those
who have custody, or any competent legal authority.
• The IMSS will provide health services directly or through other public
or private organisms.
Disease insurance.
• The Institute will provide a list of meds which will be the most helpful
according to research. Such list will be constantly updated.
• Workers will receive 60% of their salary as a subsidy, during their
incapacity, however, they will only be entitled to this whenever they
worked for the last 4 weeks prior to the disease.
• If the worker does not want to hospitalize (if needed) or interrupts
his/her treatment, he/she will not be entitled to subsidy.
Disability insurance.
• There is disability whenever the employee is not able to obtain a job
that pays at least 50% of his/her usual salary during the last year,
derived from a lack of performance caused by an accident or disease
non-work related.
• A disability declaration must be made by the Institute, and it will
grant:
• Temporary pension.
• Definitive pension.
Disability insurance.
• Employees must have 250 quoted weeks in the Institute in order to
obtain this benefit. If the IMSS declares 75% or more of disability, the
employee must have 150 quoted weeks.
• If the disability is of a permanent nature, and the worker does not
satisfy the request in the last paragraph, he/she will be able to
withdraw his/her entire savings, since no insurance will apply.
• Disability insurance may be stopped if the employee does not want to
commit to the studies or treatments the Institute asks.
Disability insurance.
• The disability pension will be the equivalent of 35% of the average
from the worker’s last 500 quoted weeks, or at least the needed weeks
to proclaim this benefit.
• Disability insurance will not apply when:

• The worker intentionally provoked the disability, directly or with

help.
• The disability results from an intentional crime from the worker.
• The disability presented prior to the worker’s affiliation to the
Institute.
Life insurance.
• Whenever the insured employee dies, his/her beneficiaries will obtain
the following:
• Widow’s pension.
• Orphan's pension.
• Ascendancy pension.
• Assistance for the widow.
• Medical assistance.
Life insurance.
• In order for the beneficiaries to obtain the stated rights, the deceased
worker must:
• Have worked for 150 weeks, or have been enjoying a disability
pension.
• Not have died in a work accident.

• All life and disability pensions will be annually updated according to

the Índice Nacional de Precios al Consumidor (INPC).
Life insurance.
• Widow’s pension.

This pension is entitled to the male worker’s spouse, or that woman

with whom the male worker lived for the last 5 years prior to his death,
or the woman with whom the male worker had children if neither of
them were married with someone else. If at the time of death the male
worker had several concubines, non of them will be entitled to the
widow’s pension.
The same pension will apply to a male widower, if he was economically
dependent of the female worker.
Life insurance.
• Widow’s pension.

It will be the equivalent of 90% of the disability pension.

Widow’s pension will not apply when:
• The death of the insured worker happened before 6 months of
marriage.
• The marriage happened after the worker turned 55 years old, unless
death happens 1 year after marriage.
• The worker was already receiving a disability pension by the time of
marriage, unless death happens 1 year after marriage.
Life insurance.
• Orphan's pension.

This pension will come to those who are under 16 years old, and their
mother or father were insured and deceased, however, the insured and
late worker will have had at least 150 working weeks computed in the
Institute or the disability pension.
If the orphan is studying in any national education system, this pension
can last up to his 25th year of age.
The orphan’s pension will be the equivalent of 20% of the disability
pension. If the orphan loses both parents, such pension will raise up to
30%.
Life insurance.
• Ascendancy pension.

If the late worker did not have widow, widower, orphans nor concubine,
the life insurance (death pension) will go to the ascendants who
economically depended on him/her.
This pension will amount to 20% of the disability pension.
Retirement pension.
• Workers may receive a pension once they retire, which they will be
able to do in the following two cases:
• After turning 60 years old and not being able to land a
remunerated job. (Cesantía en edad avanzada).
• After turning 65 years old. (Vejez).
• To receive said pensions, workers must have a minimum of 1,250
quoted weeks.
• Workers in these scenarios, who do not have the minimum quoted
weeks, may withdraw all of their inputs, or wait until the minimum
required weeks are computed.
Retirement pension.
• Every worker will have an Individual Account in which his economical
inputs will be administered. Every Individual Account will be divided
into 3 sub-accounts, which are:
• Retirement. (6.5% of the employee’s salary)
• Housing. (5% of the employee’s salary)
• Voluntary Inputs.
• Individual Accounts will be administered by Adminsitradoras de Fondos
para el Retiro (AFORE).
AFORE.
• Administradoras de Fondos para el Retiro are financial entities
dedicated in a professional way to manage Individual Accounts and
canalize the resources in the sub-accounts, as well as managing
investment societies.
• Every worker will have one Individual Account, regardless of the
amount of jobs he/she has. Employers will be obliged to ask for the
Social Security Number (SSN) in order to quote the respective amount
correctly to the worker’s individual account.
• The Ley de los Sistemas de Ahorro para el Retiro regulates AFOREs and
their operation.
AFORE.
• Every worker will be entitled to change his/her AFORE once a year, in
order for another AFORE to manage his resources for retirement.
• Any complaint regarding AFOREs, may be presented to the Comisión
Nacional del Sistema de Ahorro para el Retiro (CONSAR), which will be
in charge of supervising the AFOREs.
• AFOREs will manage the worker’s funds or accounts through
Sociedades de Inversión Especializadas en Fondos para el Retiro
(SIEFORES), which will be assigned according to the worker’s year of
birth.
AFORE.
• Workers will have the right to make voluntary contributions to their
retirement fund, besides the inputs that the employers make, which
will go directly to the Voluntary Inputs sub-account.
• Employees may withdraw from their Voluntary Inputs sub-account
once every 6 months.
• Employees may withdraw from their Retirement sub-account
whenever they have been 46 days unemployed. Said withdrawal will
be the lesser amount from either 75 days of the last 250 worked
weeks, or 10% of his/her Retirement sub-account.
AFORE.
• Every 6.5 % of the salary goes to the individual account of the worker.
The employer contributes with 5.15%, the employee with 1.125% and
the Federal Government with 0.225%.
• AFOREs will charge annual commissions on every Individual Account
of every employee.
• AFOREs will be obliged to issue a financial statement with every move
on the individual account and sub-accounts of every worker, at least
three times a year.
• Every Individual Account will have beneficiaries, which will be the
same ones recorded on the IMSS.
AFORE.
• There are currently 10 AFOREs in Mexico, and they are rated based on
three important matters: commissions, returns and service.
 Raúl Reyes Villarreal
INFONAVIT LL.B./M.B.A.
Instituto del Fondo Nacional de la Vivienda
para los Trabajadores.
• This Institute administers resources from the Fondo Nacional de la
Vivienda, in order to stablish a financing system that allows workers to
obtain a cheap enough credit for:
• Housing acquisitions.
• Construction, repairing, extension and betterment of their houses.
• The payment of debts related to the previous points.
Instituto del Fondo Nacional de la Vivienda
para los Trabajadores.
• In addition, the Institute is in charge of coordinating and financing
construction programs for houses, in order for them to be acquired by
workers.
• The INFONAVIT’s patrimony will be integrated by:
• The Federal Government’s inputs.
• Commissions for the services they provide.
• Amounts received for delays in payment and sanctions.
• The return of investments it makes with its patrimony.
• The employer’s input to the housing sub-account.
General Assembly.
• The INFONAVIT will have a General Assembly that is integrated by 45
members. Such members will be designated as follows:
- 15 members by the Federal Executive.
- 15 members by National Worker’s Organizations.
- 15 members by National Employer’s Organizations.
• Members can last up to 6 years in their position.

• The General Assembly will gather at least twice a year.

Administration Counsel.
• The INFONAVIT will have an Administration Counsel integrated by 15
members. Such members will be designated as follows:
- 5 members by representatives from the Federal Government.
- 5 members by worker’s representatives.
- 5 members by employer’s representatives.
• Members can last up to 6 years in their position.

• The Administration Counsel will gather at least once a month.

General Director.
• The Institute will have one General Director, which will be nominated
by the General Assembly at the President’s proposal.
• The General Director has to be Mexican by birth, and have the
necessary technical and administrative experience.
Employer’s Obligations.
• The employers must register in the Institute and register their
employees.
• Employers must pay the corresponding input for every worker,
according to their salary, and allow the INFONAVIT any inspection
that the entity deems needed.
• In case of any corporate change or salary change, the employer is
obliged to give notice to the Institute.
Employee’s Rights.
• Employees will be able to check their balance on their corresponding
Housing sub-account, at all times.
• Workers may use their Housing sub-account’s savings and ask for
credit to use in either a new or used house, which may or may not be
from the Institute’s built houses.
• In addition, employees may ask for credits in order to build a house for
themselves and pay for any reparation, betterment or rebuild.
• Such credits will not be longer than 30 years. Credits will have a cap,
which will be determined by the Administration Counsel and published
via the Diario Oficial de la Federación.
 Raúl Reyes Villarreal
ISSSTE LL.B./M.B.A.
Instituto de Seguridad y Servicios Sociales de
los Trabajadores del Estado.
• Created in 1959 by President Adolfo López Mateos, this Institute is a
federal organization that administers health care and social security
systems for government workers.
• The Law in charge of regulating the ISSSTE is the Ley del Instituto de
Seguridad y Servicios Sociales de losTrabajadores del Estado.
Instituto de Seguridad y Servicios Sociales de
los Trabajadores del Estado.
• The ISSSTE provides services for the following workers:

• Presidency, and all Federal Public Administration, including the

Institute.
• Congressmen.
• Judicial Power.
• Procuraduría General de la República.
• Autonomous organsims.
• State’s workers.
Instituto de Seguridad y Servicios Sociales de
los Trabajadores del Estado.
• The ISSSTE’s patrimony will be integrated by:
• Its properties, possessions, rights and obligations.
• Quotas and inputs made by employers and employees.
• Credits and interests in favor of the Institute.
• Any return of its investments.
• Compensations and pensions that prescribed in favor of the Institute.
• Economic sanctions that the Institute may impose.
• Donations or inheritances in favor of the Institute.
• Any goods or buildings that government agencies or States give to the
Institute as well as any good/building that the ISSSTE buys.
• Any other perception given to the Institute.
Instituto de Seguridad y Servicios Sociales de
los Trabajadores del Estado.
• Government agencies and States must inform to the ISSSTE, monthly,
any and all additions and discharges of employees.
• The ISSSTE will provide every employee with an identification
document so that they can exercise their rights.
• ISSSTE’s Social Security comprehends:

• Mandatory Regime.
• Voluntary Regime.
Social Security.
• The Mandatory regime covers several insurances and services for
every ISSSTE’s beneficiary.
• The Voluntary regime covers the same issues as the Mandatory
regime, once attained, however, in order to affiliate to the Voluntary
regime, such worker must have had a job in a government agency, and
then lose it, so he/she can voluntarily affiliate and pay the
corresponding quotas, in order to continue receiving every benefit.
Social Security.
• The following insurances have a Mandatory nature:

• Health.
• Work Risks.
• Retirement (Cesantía en edad avanzada and Vejez)
• Disability.
Social Security.
• The following services have a Mandatory nature:

• Mortgage loans.
• Personal loans.
• Social services.
• Cultural services.
Individual Accounts.
• Every ISSSTE affiliated worker will have an Individual Account which
will be divided into six sub-accounts:
• Retirement.
• Complementary inputs for retirement. (ISR deductible).
• Solidary savings. (Employer will contribute with $3.25 for each
Peso).
• Housing.
• Voluntary inputs.
• Long term savings.
PENSIONISSSTE.
• The Fondo Nacional de Pensiones de los Trabajadores al Servicio del
Estado or PENSIONISSSTE, is an organism that depends on the
ISSSTE, which will administer Individual Accounts by investing
resources, such as an AFORE.
• PENSIONISSSTE will administer resources via SIEFORES, just as the
AFORE does.
• The right to receive a pension will not prescribe, however, any pension
payment not claimed by a worker or beneficiary within 5 years of its
eligibility, will prescribe in favor of the Institute.
Employee’s Inventions.
• In cases of invention in the workplace, the following will be applicable:

- The inventor shall have the right over the invention.

- If the employee is dedicated to research or investigation tasks with
the company’s resources, such invention shall be accountable to the
employer.
- In any other case, property rights over the invention shall be for the
one(s) who made it, however, the employer will have a preference in
the selling of said rights.