1. What is the current legal landscape for your practice area in your jurisdiction?

Mexican labour law is historically one of the most protective regimes in the world, having originated from a revolution in 1917 that enshrined its principals at a constitutional level. This legacy continues to shape a system centred on employment stability and broad employee protections.

The most significant recent development is the 2019 reform of the Federal Labour Law (FLL), which represented the most substantial transformation in nearly four decades. This reform was not only driven by the need to modernise the legal framework, but also by Mexico’s commitments under the United States–Mexico–Canada Agreement (USMCA). Key changes included the introduction of mechanisms to guarantee freedom of association and union democracy, the creation of a new labour justice system, and the establishment of new institutions responsible for its implementation.

The current legal landscape is shaped by three defining trends.

First, the cost of labour has increased significantly over the past six years. This is driven by sustained increases in minimum wages, which in many sectors have compressed internal salary structures, as well as rising social security contributions (from the employer), particularly in relation to pensions, which are scheduled to reach 15% by 2030. Additional factors include the doubling of statutory vacations (from 6 to 12 days) and the expected gradual reduction of the working week from 48 to 40 hours by 2030. These developments have materially impacted labour costs and the structure of the formal workforce.

Second, collective labour relations have become more dynamic and, in some cases, more contentious. The reform introduced mandatory employee approval for collective bargaining agreements, strengthening union legitimacy. However, this has also led to increased union activity and, in certain cases, external influence linked to cross-border labour dynamics, particularly through the Rapid Response Labour Mechanism (RRLM) under the USMCA.

Third, the transition to a new labour justice system has significantly altered dispute resolution. Labour courts, now part of the judiciary, have adopted a more formal and evidence-driven approach. At the same time, a new reform affecting the composition and selection of judges through a secret election have introduced a degree of uncertainty regarding consistency and technical expertise in judicial decisions.

In summary, the Mexican labour landscape is currently defined by increasing labour costs, evolving collective dynamics and a more complex and uncertain litigation environment.

2. What three essential pieces of advice would you give to clients involved in your practice area matters?

First, invest in a preventive labour strategy. Most employment disputes in Mexico do not arise from complex legal issues, but from reactive and poorly structured workforce management. This requires more than external legal advice. Employers should strengthen their human resources function and align it closely with legal counsel, establishing clear, measurable objectives and a tailored risk-mapping approach for each workplace. Talent management should be proactive, taking into account evolving workforce expectations, generational shifts and modern workplace challenges. The objective is not to eliminate disputes—which is unrealistic in this jurisdiction—but to manage them strategically and with preparedness.

Second, integrate labour cost planning into business strategy. Employers must anticipate the increasing cost of labour and the structural changes affecting the workplace, including wage pressure, social security contributions and upcoming regulatory developments. A clear understanding of these factors is critical not only for financial planning, but also for talent retention and organisational stability. Transparent communication with employees and unions regarding the company’s economic context, market conditions and operational challenges is equally important, as it fosters a more informed and collaborative environment and reduces the risk of conflict.

Third, adapt to the new reality of union dynamics. The current framework does not require employers to grant access or recognize rights to minority unions. As part of the new framework, employers are required to move beyond traditional models of dealing with a single, majority union. This menas, companies must be prepared to interact with multiple unions, including minority organisations whose presence is being reinforced in practice through the RRLM. Although the Federal Labour Law does not fully regulate the role of these minority unions, recent developments derived from the remediation plans derived from the RRLM have effectively expanded their access and influence within workplaces. This creates a more complex and, at times, adversarial environment, requiring employers to implement structured engagement strategies that preserve operational continuity while respecting freedom of association rights. This is without doubt the most important change in labor law that employers will face.

3. What are the greatest threats and opportunities in your practice area law in the next 12 months?

The main challenges in the Mexican labour landscape can be grouped into three categories: economic, organisational and strategic.

From an economic perspective, the sustained increase in labour costs represents a significant pressure point. Employers are required to absorb higher wages, increased social security contributions and enhanced statutory benefits, which may affect competitiveness, particularly in labour-intensive industries. In some cases, this may incentivise partial or full informalisation of operations as a survival mechanism, creating additional legal and operational risks.

From an organisational standpoint, the most significant threat lies in the potential escalation of labour conflicts. This includes both collective disputes driven by increasingly active and, at times, externally influenced unions, and individual claims that, if not properly managed, may result in substantial contingent liabilities. The growing complexity of union dynamics and involvement of the US Government through the RRLM and other mechanisms of the USMCA adds an additional layer of risk for employers that are not adequately prepared.

At a strategic level, the greatest threat is a lack of preparedness. Many employers continue to approach labour relations reactively, without investing in preventive systems capable of anticipating and managing these evolving risks. In the current environment, this gap can translate directly into financial exposure and operational disruption.

At the same time, these developments present clear opportunities. Employers that invest in preventive labour strategies can strengthen their hiring practices, training programmes and overall workforce management, leading to improved productivity, greater stability and more collaborative labour relations.

In addition, Mexico is undergoing a broader transformation in the way employment relationships are defined. Recent regulatory developments, including the recognition of new forms of work such as digital platform-based services, signal a shift towards more flexible and modern interpretations of labour relationships. This evolving framework creates opportunities for employers to redesign workforce structures in a way that aligns with both legal requirements and business needs.

 4. How do you ensure high client satisfaction levels are maintained by your practice?

Our firm was founded in 1930 and has, for more than nine decades, served as a strategic advisor to employers in Mexico. Maintaining the trust of our clients over such a long period requires a consistent commitment to three fundamental principles.

First, we prioritise close and responsive relationships with our clients. This involves direct partner involvement and a highly trained team capable of providing both preventive and corrective advice. We place particular emphasis on the preparation and continuous development of our lawyers to ensure that clients receive clear, practical and timely guidance in an increasingly complex labour environment.

Second, we maintain strong internal collaboration and communication within the firm. Labour matters often involve operational, regulatory and strategic considerations that require coordinated analysis. By fostering a culture of teamwork and rigorous internal discussion, we ensure that our advice remains technically precise, consistent and aligned with our clients’ business objectives.

Third, we actively participate in the development of the labour and employment landscape in Mexico. Through our participation in professional organisations, industry discussions and international organisations, we closely monitor legislative, regulatory and institutional developments. This allows us not only to respond to legal changes, but to anticipate them and prepare our clients for the practical implications they may generate.

Ultimately, our goal is not only to resolve disputes, but to help clients manage labour risk strategically and maintain stable and productive workplace relationships.

5. What technological advancements are reshaping your practice area?

Technological advancements—particularly artificial intelligence and digital communications—are beginning to reshape labour and employment law in ways that go beyond traditional regulatory cycles.

While technological disruption is not new, the scale and speed of current developments are unprecedented. Historically, automation has been introduced gradually, allowing labour markets and regulatory frameworks to adapt over time. In contrast, the rapid expansion of artificial intelligence is accelerating this process, creating a potential gap between technological capability and the legal and social structures designed to regulate work.

From a labour perspective, this transformation raises fundamental questions regarding job displacement, workforce reconfiguration and the nature of employment relationships. The emergence of new work models—such as digital platforms and hybrid forms of engagement—has already begun to challenge traditional legal definitions. Mexico has taken initial steps in this direction by recognising certain forms of platform-based work, but regulation continues to lag behind the pace of technological change.

These developments are also likely to generate tension at a collective level. Trade unions and other labour stakeholders may increasingly resist or seek to regulate the adoption of new technologies where these are perceived to threaten job stability or working conditions. As a result, technological change is expected to become a central issue in collective bargaining and labour disputes.

In this context, the key challenge for employers is not only adopting new technologies, but doing so strategically and responsibly. Ultimately, the most significant impact of technology in this area is not limited to specific tools, but to its ability to redefine how work is structured, performed and regulated.