Social security seeks to guarantee the protection and welfare of workers and their families and is closely linked to labor relations, where private employers have the obligation to insure their workers before the Mexican Social Security Institute (IMSS). However, due to the high level of labor informality in the country, the IMSS has the obligation to monitor the protection of workers in case of non-compliance by the employer, so in the event that an employer does not have its workers registered with the IMSS, a Constitutive Capital can be attributed to them.
Constitutive capital is a social security figure in Mexico that seeks to compensate the costs of the benefits granted to workers in situations in which they have not been registered, or the insurance has not been covered correctly in the social security system or when their declared salary is lower than the real one In other words, the constituent capital is an insurance and compensation mechanism that allows workers to access the benefits to which they are entitled, despite the omission or non-compliance of their employer.
The Political Constitution of the United Mexican States, the Social Security Law and the Federal Labor Law establish the legal basis for the application of the constitutive capital. These laws emphasize the direct and subsidiary liability of employers for the protection of workers, both in cases of occupational accidents and occupational diseases. In addition, it establishes the obligation of employers to comply with the provisions guaranteeing decent and safe work.
The constituent capital is calculated on the basis of the benefits in kind and money to which the worker is entitled, such as medical assistance, indemnities, pensions and administration expenses, among others.
It is crucial that companies recognize the importance of constituent capital as a key aspect of corporate responsibility and legal compliance. Ensuring that workers are properly registered with social security and receive the corresponding benefits not only complies with legal obligations but also fosters a fairer, more equitable, and secure work environment.
If your company is looking to strengthen its corporate image, comply with labor regulations and demonstrate its commitment to employee welfare, at Vega Guerrero y Asociados we can help you implement the appropriate processes, thus ensuring legal compliance and the protection of your workers.
