Executive Summary:
- On May 1, 2023, the deadline granted by the 2019 Labor Reform for the legitimization of collective contracts in Mexico was met.
- All contracts that have not been legalized or have not submitted an application to discharge the contract legalization procedure before this date have been legally terminated.
- Collective bargaining agreements that currently have a request for legitimation procedure on the electronic platform may be processed until July 31 of this year.
After 4 years of planning, strategy and execution by the unions, the deadline granted by the 1 Labor Reform for the legitimization of collective contracts in Mexico was met on May 2023, 2019, so all contracts that have not been legitimized or a request to complete the contract legitimization procedure before May 1, 2023 have been legally terminated.
Those collective agreements that currently have a request for legitimation procedure on the electronic platform established for this purpose may be settled until July 31 of this year.
Unauthorized collective contracts will be terminated, meaning that unions will lose the administration of these contracts, as well as the right to collect union dues from workers. However, the termination of contracts will not mean that workers will lose the rights, benefits and/or obligations agreed upon in them, so employers will have to respect these conditions.
Although the deadline for legitimization has concluded, this does not extinguish the right of workers to enter into collective contracts. However, all contracts entered into from this moment on must follow the process for entering into new collective labor contracts established in the Federal Labor Law.
On the other hand, collective bargaining agreements that have been legitimized by the majority support of workers expressed in a secret vote and in accordance with the consultation procedure established in the Federal Labor Law will remain in force and will continue to have all their legal effects, as long as they comply with the respective formalities for their periodic review and have the support of the majority of workers.
The Federal Center for Conciliation and Labor Registration, through its website, has established a list of employment contracts in Mexico, so it is possible to review them on said portal: https://centrolaboral.gob.mx/listado-cct-legitimados/.
