Recent Jurisprudence – Commission Agents and Employment Law Decision

Recently the Second Chamber of Mexico’s Supreme Court published in its Judicial Weekly of the Federation(Semanario Judicial de la Federación) case decision number 2a./J.149/2009 under the heading “MercantileCommissions. Criteria to determine the existence of a labor relationship”. In this regard, Mexico’s highest courtreiterated the legal criteria that subordination is a characteristic element evidencing a labor relationship. In thismanner, the Supreme Court held that the commission agency agreement will be considered as independent, andnot one creating an employment relationship, when the following elements are met: (i) the commission agent hasadequate personnel and resources to carry out its activities; (ii) The commission agent is free to set his own hoursand is not obligated to personally fulfill the agency services; and (iii) the agreement does not confer exclusivity toany of the parties and the activities of the commission agent are carried out in an independent manner.