IP [Private Sector] warns about doubling of accrued salaries

Leon, Mexico (October 09, 2019).- The employers’ sector opposes the initiative that doubles accrued salaries, as this sector believes that this is a threat to the creation of jobs and a threat to smaller companies.

The Commission on Labor and Social Welfare of the Senate approved a decision that commands the payment of 100 percent of accrued salaries for two years and, from the third year forward, an interest of 4 percent will be paid on the amount of 15 months of capitalizable salary at the moment of payment, in the case of labor proceedings.

In this manner, the current amount of accrued salaries will be doubled.

“The initiative of Senator Napoleón Gómez Urrutia of the Parliamentary Group of the Morena Party is a setback to the Reform of 2012 on the payment of accrued salaries that will create an economic benefit proportional to extension of the process”, stated Coparmex [Employers’ Confederation of the Mexican Republic]

This measure will necessarily be an incentive to encourage the lengthening of processes, making them last longer than they do now, was the opinion of Oscar de la Vega, directing partner at De la Vega & Martínez Rojas.

“The main employers in the Country are micro, small and medium businesses, which have to face labor proceedings with an average duration of 2 to 3 years or more due to the saturation and lack of resources of the Conciliation and Arbitration Boards”, the expert pointed out.

This, he said, puts the patrimony of said employers at risk and, in many occasions, that of families who start small businesses, as the accumulation of accrued salaries has no limit or ceiling in terms of time.

He recalled that the Federal Labor Law was made more flexible in the Reform of 2012, establishing a ceiling of 12 months for the payment of 100 percent of the salary and, from the second year forward, a monthly interest of 2 percent was established on the amount of 15 months of capitalizable salary at the moment of payment which, in simple terms, equals a third of the worker’s salary, with no limit in regard to the number of years that the trial lasts.

However, in the decision approved by the Commission on Labor and Social Welfare of the Senate, the amount to be paid is doubled.

Note published in El Norte, Business Section by Verónica Gascón.

Note published in Reforma, Business Section by Verónica Gascón.

Note published in Mural, Business Section by Verónica Gascón.