On November 4, 2016, the Federal Congress approved an initiative to amend various provisions of the Constitution of the United Mexican States on labor matters. The initiative seeks an in depth reform of procedural law in order to guarantee autonomy in the administration of justice and to improve the system of distribution of jurisdiction between federal and state arenas.
To this end, the State and Federal Conciliation and Arbitration Boards are expected to disappear and will be replaced by federal or state judicial courts, as well as decentralized Conciliation Centers, to serve as a prejudicial authority where there shall be a single mandatory conciliation hearing and subsequent hearings as per the agreement of the parties. The Conciliation Centers will also have authority to maintain a registry of all collective bargaining agreements and trade union organizations.
The initiative foresees a transition period where current labor boards will continue to resolve conflicts. Once the labor judicial courts and the Conciliation Centers have been established, the lawsuits that are in process will be resolved according to the provisions applicable at the time of their commencement.
Sources of information and disclaimer: The following sources of information, among others, have been used in preparing this document: Official Journal of the Federation, the Bank of Mexico, Supreme Court of Justice of the Nation, Department of Finance and Public Credit. The CCN MéxicoReport ™ does not constitute legal or tax advice and should not be used for purposes other than as purely informative for the general public. For more information on the CCN MéxicoReport ™, any of the issues mentioned therein or to inquire about legal services, please contact Rob Barnett (rbarnett@ccn-law.com) or Mario Melgar (mmelgar@ccn-law.com), phone (210) 222-1642.
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