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3 de November de 2020
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Presidential Provisions in Response to the Coronavirus (COVID-19)…

PRESIDENTIAL PROVISIONS IN RESPONSE TO THE CORONAVIRUS (COVID-19) EFFECTS ON LABOR LAW In response to the “Presidential Provisions in the Case of Public Calamity and Orders for Strict Compliance,” dated March 16, 2020, and modified and expanded on March 21 of the same year, from a labor law perspective, it is important to consider the […]

PRESIDENTIAL PROVISIONS IN RESPONSE TO THE CORONAVIRUS (COVID-19)
EFFECTS ON LABOR LAW

In response to the “Presidential Provisions in the Case of Public Calamity and Orders for Strict Compliance,” dated March 16, 2020, and modified and expanded on March 21 of the same year, from a labor law perspective, it is important to consider the following:

  1. The Labor Code establishes that a suspension of the employment contract occurs when one or both parties in the employment relationship fail to fulfill, partially or totally, any of their fundamental obligations (performance of work and payment of wages) for a period of time, without terminating the contract or extinguishing the rights and obligations arising from it.
  2. As a consequence, the labor activities of both the public and private sectors were collectively suspended. However, it was not clarified whether this suspension is partial (which implies only the suspension of work performance) or total (which implies both the suspension of work and the payment of wages), making the legal and economic effects of this suspension unclear.
  3. It can be interpreted that “the pandemic” constitutes a case of “force majeure,” which fits one of the grounds for the collective “total” suspension of employment contracts under section e) of Article 71 of the Labor Code. However, to date, the Ministry of Labor and Social Security has not issued an agreement to establish emergency measures that, without harming the interests of employers, would result in alleviating the economic situation for workers.
  4. Companies must request authorization from the Ministry of Economy to operate or provide their services, or alternatively, agree on the mechanism to suspend their operations, particularly for companies in the maquiladora and manufacturing sectors.
  5. In this situation, it may be agreed to grant vacations to those employees who voluntarily request to take them or suspend employment contracts in the manner, form, and duration that each situation requires. Alternatively, agreements may be made to ensure the health and safety of workers while they continue providing their services.