Beach in Mexico

Mexico: A Guide to Prevent Collapse During Coronavirus

We have gathered information on what measures you can take as an employer in Mexico to help preserve your employees while keeping your business intact. As more information comes in, we will update this post.

If you have any questions on the impact of Coronavirus on labor laws, visit our LinkedIn AMA post and leave us your questions in the comment section and we will reply.

[AMA] Impact of Coronavirus on Labor Laws

Updated: March 29, 2020

Salary Reduction-  In general, it is not possible to reduce the salary of an employee.  In order to do so, an employer would essentiall have to dismiss the employee and re-hire them with a different job title and salary.  If Mexico declares a state of emergency, it would be possible to reduce an employee’s salary without written consent. However, Mexico has not declared a state of emergency as of yet.

Salary Reduction and Reduction of Hours-  It is possible to reduce the number of hours and subsequently pay if such request is initiated by the employee.

Unpaid Leave-  It is possible to put an employee on unpaid leave.  This would require for an employee to sign an amendment to their employment contract and must be for a fixed period of time.  In addition, the employee has the right to end the unpaid leave at any time. During the period of unpaid leave:

  • The employer must continue to pay social security contributions for the employee
  • The employee is not able to receive unemployment benefits during the period of unpaid leave