New Reform on labor exploitation

Hogan Lovells[co-author: Almeduena Cuesta]

On June 8, 2024, a significant reform on labor exploitation came in to force under the General Law to Prevent, Punish and Eradicate Crimes related to Trafficking in Persons and the Protection and Assistance to Victims of such Crimes (in Spanish Ley General para Prevenir, Sancionar y Erradicar los Delitos en Materia de Trata de Personas y para la Protección y Asistencia a las Víctimas de estos Delitos).


Key Aspects of the Reform

Work shifts exceeding the weekly legal limits established by the Mexican Federal Labor Law will now be considered labor exploitation.

Specifically, work shifts are deemed excessive when they exceed 9 hours of overtime per week. It could be interpreted that requiring overtime in excess of said limit could potentially be considered labor exploitation


Penalties for Non-Compliance

  • Employers who engage in these practices will face severe penalties, including:

    • Fines: from 5,000 to 50,000 fine days (días multa) Fine day is equivalent to the net daily income of the sentenced person at the time of the crime, taking into account all income.

    • Imprisonment: from 3 to 10 years.

  • These penalties may be increased by up to 50%, if the affected workers belong to vulnerable groups, including:

    • Pregnant women

    • People with physical or psychological disabilities

    • Minors under eighteen years of age

    • Senior citizens

    • Members of indigenous and Afro-Mexican communities.

There is also a pending bill proposing the reduction of the weekly work shift from 48 to 40 hours. If approved, this change will further impact compliance requirements and increase the risk for companies of falling into scenarios of labor exploitation.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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