Legal InsightsFederal Labor Law Amendment on “Remote Work” or Home Office

February 8, 2021

The approved decree defines Remote Work as the rendering of personal, subordinated and remunerated services that do not require the physical presence of the employee in the work site, by using mainly ITCs for the development of their employment activities. In order for the services rendered to be considered as Remote Work, the activities performed must be rendered under this modality for over 40% of the time and not occasionally.

From a labor perspective, this amendment provides new employer obligations, such as the need to (i) make the necessary adjustments to the employment contracts and Collective Bargaining Agreements, or the corresponding Internal Labor Regulations; (ii) provide the necessary training to employees; (iii) assign and keep record of the work tools and equipment provided to employees that are necessary for the services rendered under this modality and needed for the correct development of their functions; (iv) assume the corresponding costs generated under the remote work modality, if applicable, such as the payment of telecommunication services and the proportional part of electricity expenses; (v) respect the employees’ right to disconnect; and (vi) register employees under the mandatory social security regime.

On the other hand, the implementation of this work modality has social security implications, as the obligation of assuming the costs related with the telecommunication and electricity services that are needed to perform the services could have an impact on the salary integration needed to determine and pay social security contributions.

Similarly, the decree provides that the Ministry of Labor and Social Welfare (STPS in Spanish) will need to publish a Mexican Official Rule within the following 18 months, that will govern the safety and health obligations for the work rendered under this modality, which could have an impact on the obligations related with the occupational hazards’ insurance.

It is important to keep in mind that non-compliance to the provisions determined by the FLL could trigger potential fines in case of an inspection by the STPS.

In our opinion, it is essential that employers with employees working under this Remote Work modality (including those that currently rendering their services from home due to the Pandemic) comply with these obligations and clearly agree in writing the terms and conditions under which Remote Work will be implemented.

With the purpose of reducing potential risks and contingencies from a labor and social security perspective, at Monsalvo Duclaud we are prepared and ready to help you with the implementation of this work modality or any related issues.

This document was generated for informative purposes only and shall not be considered as a legal opinion of any kind for any specific situation. In case you require the need of any of our specialists, please contact us in the emails below.

Contacts:

luis monsalvo valderrama
alan duclaud ampudia
isabel pizarro guevara
andrés cámara pérez

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