Recent Amendment:
On June 7, 2024, an amendment to the General Law to Prevent, Punish and Eradicate Crimes Related to Human Trafficking and to Protect and Assist Victims of These Crimes (“Law on Human Trafficking”) was published, adding a section to Article 21, which defines that work hours exceeding those stipulated by law should be considered labor exploitation. This addition has generated various interpretations and concerns.
Amendment Details:
The amended article establishes:
“Article 21. Whoever exploits one or more persons for labor shall be sanctioned with a penalty of 3 to 10 years in prison, and a fine of 5,000 to 50,000 days’ salary.
Labor exploitation exists when a person obtains, directly or indirectly, unjustifiable benefit, economic or otherwise, unlawfully, through another person’s work, subjecting the person to practices that violate their dignity, such as:
…
IV. Work hours exceeding those stipulated by law.”
Business Impact:
From our perspective, the key to this reform lies in the term “unlawful“. According to its textual definition, “unlawful” refers to something that is contrary to the law. In our opinion, this means that to avoid falling under the conditions regulated by the Law on Human Trafficking, any benefit obtained by the employer must comply with current laws, in this case, the Federal Labor Law.
Practical Recommendations:
To avoid engaging in practices considered unlawful, it is recommended that any overtime work be documented with the explicit consent of the employee. It is crucial to ensure that the worker is aware and agreeable to the conditions and that payments are made in accordance with the Federal Labor Law, thus avoiding violations.
Future Outlook:
This amendment appears to target the informal labor market, and it is likely to be subject to judicial review and interpretation in the coming weeks. Nonetheless, it is important to mention that investigations by the Prosecutor related to these matters may begin.
For more details or inquiries on how this amendment might affect your company, please do not hesitate to contact our team at Vega, Guerrero & Asociados.
