Federal Labor Law Reform Initiative Presented by Institutional Revolutionary Party (PRI)

Mexico's labor law was a product of labor demands within the revolutionary process (1910-1917), and later galvanized by the corporatist structure of the ruling post-revolutionary regimes, and others who claimed to be rightful heirs of the Mexican Revolution. In the Mexican Constitution of 1917, which is still in force, a provision (article 123) has been amended over time and establishes the main principles of Mexican labor law. This Constitutional provision also has served as the basis for other regulatory labor provisions, most importantly the Federal Labor Law (Ley Federal del Trabajo or LFT). Today, the need to make changes to the LFT has become evident, since labor practices have surpassed the expectations and conditions contemplated in this law. Recently the PRI proposed a reform to the LFT which, among its principle points, contemplates the following: (i) to not change the principles in article 123 of the Political Constitution and the fundamental rights of workers in Mexico; (ii) to regulate the concept of "outsourcing" or companies providing personnel services; (iii) to integrate important changes in the hiring process, such as trial periods, initial training agreements and temporary workers; (iv) to harmonize various articles referring to employers' obligations to provide training to employees on a permanent basis, extending the obligation to provide such training to employees; (v) to strengthen a key factor in labor lawsuits, which is the conciliation efforts of the parties at any stage of the litigation process; (vi) to contemplate a regulation concerning digital documents, electronic signatures or passwords; and (vii) to establish a summary proceeding to handle conflicts arising from Mexican Social Security fees, housing fees and contributions to workers' retirement funds.

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