Mexico’s federal system is largely modeled after the federal framework adopted by the United States of America. The central idea is that the federal government coexists with the state governments, which acting together comprise a balanced political structure. Each government has powers that are granted by a general constitution that establishes the rules for the distribution of power, jurisdiction and obligations. For a variety of reasons, discrepancies naturally arise between state and federal governments. When these disputes cannot be resolved through political dialogue, it is the task of the federal Supreme Court to resolve them.

Not all Mexican state governments are currently aligned with the same political party. In what could be considered an historic development, not even the political party leading the federal executive branch has a majority. Of the 32 Mexican states, which now include the newest state, Mexico City, the PRI controls 12 states, the PAN controls 10 states, MORENA controls seven states, and the PRD controls one state. Two states, Jalisco and Nuevo Leon, are independent and not controlled by any single political party. Recently, some Mexican state governors began a movement to confront the federal government and oppose certain policies adopted by President Lopez Obrador, particularly on measures which need to be taken to address the COVID-19 pandemic.  This movement was led by Governor Enrique Alfaro of Jalisco, and it appeared such actions would lead to increased political tension.

For the sake of stability, in a recent meeting among the governors and the president, the governors made strong demands with respect to security and economic issues. In a show of good faith, the president stated that his government is not “sectarian”, which is to say partisan, and he conceded that several items  have created tension throughout the federal-state relationship. He offered to restructure state debts, pay states their corresponding federal budget allocations without delay or negotiation, on a timely basis in accordance with the federal revenue sharing agreement, and even to amend the distribution formulas so the states and Mexico City receive more financial resources. Among the most relevant results of the meeting were those relating to the COVID-19 pandemic. For example, the president and governors reached a consensus regarding the details and operation of the pandemic signal light system, which has been a great concern for the states. The parties agreed that the devastation caused by the pandemic has put Mexico in an economic and health crisis. Fortunately for Mexico, it appears that Mexico’s federal and state leaders share a general desire to confront these issues in a coordinated manner in order to achieve the best results possible for the Mexican people.

As a result of the COVID-19 pandemic, Mexican companies that i) are deemed essential, ii) are deemed to be non-essential but are and currently undergoing a reopening process, and iii) those that due to the nature of their work have employees working remotely, must implement and maintain specific written protocols and policies in accordance with federal and local guidelines requiring numerous measures to be taken to ensure a safe return to work, and if applicable, to regulate temporary remote work.In addition to maintaining appropriate protocols and policies, companies must also maintain certain documentation such as logbooks, questionnaires, records of the delivery of personal protective equipment, signage, communications, and training records, among others. In the event of a workplace inspection, the company can use such documentation to prove its compliance with all guidelines applicable to companies that are reopening their operations.Furthermore, it is important for companies to maintain documentation and photographic evidence of their facilities. Such may be needed to prove to the Mexican Social Security Institute (“IMSS”) that they have complied with the self-evaluation process that companies must conduct on the electronic platform named the “new normal” (“nueva normalidad” in Spanish), in order to obtain approval to reopen their operations. In addition to the federal self-evaluation process, some Mexican states have their own local platforms, processes and guidelines with which companies must comply. Some states even go as far as to require random COVID-19 testing of employees, in proportion to the number of employees employed by the company.Importantly with respect to remote work, the IMSS has determined that it is possible to consider COVID-19 a work-related illness. In order to avoid the risk of COVID-19 or any other conditions or illnesses suffered by employees working remotely from home from being incorrectly classified as a work-related accident or illness, and to regulate work schedules, measure productivity, ensure the correct use of work devices, confidentiality, and appropriate use of the workspace (ergonomic), among others, companies must thoroughly regulate remote work through protocols and policies duly acknowledged and signed by employees. In such cases, an exhibit to the individual labor contracts of a company’s employees must be added to document that the employees will be temporarily working under the remote work format.Employers should consult with their advisors to obtain the advice necessary to fully implement all of the guidelines and measures described above. They should also correctly and completely prepare the documents, protocols, policies and exhibits they require to comply with all of their Mexican labor law obligations.