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Sheinbaum's Labor Agenda: Changes and Possible Implications for Employers in Mexico

Following her inauguration on October 1st, 2024, President Claudia Sheinbaum Pardo presented her labor agenda as part of her 100 commitments, which aligns closely with initiatives already introduced in Congress. As an employer, it is important to stay informed and monitor labor developments, as these changes could bring significant shifts to labor dynamics across the business sector.

 

Key highlights of the labor agenda outlined in the President’s 100 commitments include:

  • Increase in the minimum wage: The government plans to raise the minimum wage to at least the equivalent of 2.5 basic baskets, with annual and progressive increases. Currently, the minimum wage is equivalent to 1.6 basic baskets.
  • Reduction of the workweek: A gradual reduction of the workweek from 48 to 40 hours is being considered, which may be approved over the course of the administration, with the goal of negotiating with the business sector to achieve this.

Currently, most medium and large companies already operate with 40-hour workweeks, so this change would not only validate what the majority of medium and large businesses are already practicing but would also bring small businesses into alignment with this requirement.

This new labor agenda adds to ongoing discussions, which, if approved, would also have direct impacts on companies:

  • Christmas Bonus: Increasing the minimum year-end bonus for workers from 15 to 30 days of salary.
  • “Ley Silla”: Prohibiting employers from forcing workers to stand for the entirety of their work shift. Employers would be required to provide chairs with proper back support for employees to perform their duties or to rest periodically.
  • Seniority Bonus: Establishing compensation of 12 days of salary for each year worked if the worker resigns voluntarily or is dismissed, whether justified or unjustified.
  • Paid Paternity Leave: Workers would be entitled to 20 days of paid paternity leave, extendable by 10 additional days in the case of post-delivery complications affecting the mother or newborn, with full pay during the leave.
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