Since 2019, the Congress has been working in the amendment to the legal framework applicable to teleworking and/or work from distance. On December 8, 2020, the Legislative Chamber discussed and approved the draft of amendment to article 311 of the Federal Labor Law (“FLL”) and the addition of Chapter XII BIS that will regulate the figure of “Teleworking”, which was referred to the Senate on December 9, 2020, and the latter, in such date, approved in general and particular terms to regulate with greater detail this figure.

The integration of “home office” in 2012 was incorrect and incomplete. By a technical mistake, teleworking was equated to home office. As of the new legislation that will be in force, the distinction between these concepts is that home office is such work carried out at the domicile of the employee, without being under control and direction of employer. By comparison, for teleworking, as established in the new legal definition, is indispensable that the services comply with the following conditions:

• (i) That the works are rendered in a different place to the workplace of the employer.
• (ii) That it is not required nor indispensable the physical presence of the employee in the facilities of the employer; and
• (iii) That the resources of the new information technologies are used for the administration of the labor relationship and the supervision of the performance of the service.
• (iv) Before the legal amendment that will be in force, we identify at least three relevant forms of work with regard to the rendering of services under the scheme of Home Office or work from distance. These forms of services are rendered by means of information technologies and have been established in general under the labor rights and obligations of the FLL, in agreements whereby the parties set forth the terms and conditions of the service.

Firstly, the employees that for convenience and efficiency have the employer’s authorization to work, in an extraordinary manner, one or two days remotely, performing their services by technological means, but, in view of the nature of their functions, have the obligation to render their services in the employers’ facilities.

In second place, we can identify those employees that in view of the nature of their functions may render their services within or out the facilities, indistinctly, and that have the professional liberty to determine if they perform their duties physically or not in the employer’s facilities.

Finally, those employees that render their services in their domicile or in a place freely chosen by them, using the information technologies, will be subject to the new legal framework, that include the following conditions:

• Those who, in addition to complying with the three requisites, render their services constantly and fulfill more than 40% of their work shift under such modality will be considered teleworkers. Those who work sporadically or occasionally from a different place to the employer’s facilities will not be considered as teleworkers.
• As special regime of work, an agreement must be entered into by and between the employer and the teleworker, in which the obligations, rights and responsibilities of a labor relationship under such modality are established, including the equality in the treatment to teleworkers and employees. Among others, it shall contain:

1. Description of the equipment and work supplies;
2. Contact and supervision mechanisms between the parties;
3. The work-shift, connection and disconnection periods;
4. The compliance of the obligations and responsibilities of the employer and teleworker in matters of health, security and welfare of professional risks;
5. The manner in which the modality of teleworking may be revoked pursuant to the existent labor relationship.

• The collective bargaining agreements and the internal work regulations must include the terms and conditions of teleworking, providing a communication system for the link and contact of the employees.
• The employers will be obligated to provide the supplies, equipment and pay the proportional costs of the connectivity and electric energy services. The ruling expressly refers to the computer equipment, ergonomic chairs and printers, among others.
• Regarding the controversial concept of security in work, the amendment foresee the creation of a Mexican official standard in health, security and welfare of professional risks matters, for the activities to develop outside the workplace using information and communication technologies within a term of 18 months. In the same manner, the amendment establishes that the authorities shall integrate the national network of counsel, promotion and development of teleworking referred in the draft of amendment, as well as to establish the guidelines related to accidents and diseases with teleworking.

In general terms we anticipate that the amendment will contribute to the legal security of the labor relationships that are performed under this modality, in view that it will allow the companies to assure the efficiency and quality of the services rendered from distance, allowing the elaboration of agreements, either of telework or in a flexible modality in which the employee and the employer may agree that, from time to time, and without exceeding the 40% limit, may be rendered the services from distance. In accordance to the special obligations and rights, we estimate that it may be included to the agreements additional conditions in connection to:

• The obligation to perform the services using as a tool a laptop assigned by the company;
• The obligation of the employee to take care and maintain the assigned equipment for the performance of the entrusted activities (hardware as well as software);
• The obligation of the employee to take care and maintain the assigned equipment for the performance of the entrusted activities (hardware as well as software);
• Limits to the work-shifts, availability of schedule, supervision, digital connectivity and disconnection;
• That the company conserve the authority to determine the activities, date of deliverables, works, projects and tasks to carry out by the employee, indicating the necessary requisites and specifications;
• That the modality of work from distance or home office may be modified, suspended or canceled, from time to time, at any moment that the company considers necessary, provided that the employee's rights are not affected;
• Protection of personal data and privacy of the employee;
• Use and confidentiality of the company’s information.

For the purposes of measurement of potential impact in the operation of the companies, we shall analyze, those who rendered or not its services in the workplace at the moment of the emergency health declaration.

For the purposes of measurement of potential impact in the operation of the companies, we shall analyze, those who rendered or not its services in the workplace at the moment of the emergency health declaration.

Agreeing to the rendering of services from home pursuant to the referred agreements and recommendations of labor authorities, does not imply from our perspective, the recognition that the services are not necessary in the facilities of the company, and does not transform the employees by definition in teleworkers for the simple circumstance that until today they fulfill their tasks from home, in view that, once concluded the health emergency, the employees shall provide their services in the work place as they have done until before the emergency, since their appearance in the employer’s facilities results indispensable, as it is agreed.

For such purpose, it is important to review the terms and conditions of the labor agreements of home office that were implemented, to verify that the cause of modification to the labor relationship has its causality in the health emergency, and that the company has full authority to terminate the agreement in order for the employee to attend to its work in the domicile where he had once attended.

It is relevant to refer that this amendment will be in force during the health emergency by the Covid-19. The amendment was sent to the Federal Executive Branch for its enactment and publication in the Official Gazette of the Federation and come into force as of the following day as foreseen in the transitory articles, which we estimate will be in the following days.

In the context of the “New Normal”, and in light of the expectation of certain companies to resume activities in September, we share the most relevant guidelines and the additions that have been made to such guidelines by local authorities in the main cities of the country.

As we have informed in previous newsletters, on the occasion of the resumption of activities in the workplaces, the federal authorities established guidelines according to which each local community has issued certain rules and requirements to avoid risks of contagion of SARS CoV- 2.

In general terms, at the federal level, the “Technical Guidelines for Health Safety in the Workplace” were published, which establish the principles and strategies related to health promotion measures, health protection and care for vulnerable people, which should be considered in the development of the Health Safety Protocol.

As of June 1, the “Health Alert System” was implemented, in which the federal authorities have defined the degree of risk of contagion, distinguishing different levels according to a traffic light system that consists of four levels: red, orange, yellow and green - from highest to lowest risk of contagion.

With respect to Mexico City, on May 29th, the Guidelines for the Execution of the Gradual Plan towards the New Normal were published in the Official Gazette, in terms of which the New Normal will be implemented in a gradual and progressive way in the economic, labor, social, educational, cultural, transportation and governmental activities in Mexico City.

However, on July 28 and 31, several modifications to the Guidelines for the Execution of the Gradual Plan towards the New Normal were published in the Official Gazette, highlighting the following special obligations at the local level:

Those responsible who resume work must obtain a Letter of Commitment, for which it is necessary to register on the platform http://covid19.cdmx.gob.mx/medidassanitarias, entering the general identification data requested by that platform. In the case of multi-plant companies, each plant needs to be registered individually.

- In addition to the previous requirement, medium and large companies must have a policy of non- discrimination for coronavirus (or, if appropriate, include a wording in this regard in the code of ethics).

- Before resuming physical work, employees must carry out a self-assessment to identify any signs of contagion; the different means through which one can carry out the assessment are as follows:

• Free text message (SMS) with the word “covid” to the number 51515;
• On the website https://test.covid19.cdmx.gob.mx/;
• By calling the Locatel telephone number 5658- 1111; or
• By sending a direct message to the official account of the Government of Mexico City on facebook (https://www.facebook.com/GobiernoCDMX/) with the word “covid”.

- The testing obligation only applies to companies with a workforce of more than 100 employees, physically present at the workplace.

• For the purposes of the foregoing, a workplace is understood as the place, such as buildings, premises, facilities and areas, where exploitation, development, production, marketing, transport and storage or service provision activities are carried out, and where persons who are subject to a formal employment relationship;
• In this situation, a test must be applied bi-weekly to 3% of the employees who are physically providing services in the workplace;
• The results of each scheduled test must be reported to Locatel (please note that this service is not accepting the results of the “rapid tests”, since only the result of the RT-PCR type test will be considered valid);
• In order for the employer not to assume the cost of each individual test, there is the alternative of doing “group tests”, which consist of taking samples from up to 15 employees and combining them to be processed in a single test;
• They must ensure that each employee in the tested group performs a self-assessment to identify any symptoms of covid-19; and in the event that a group test is positive, they must order home quarantine for the entire group and test each employee in this group individually;
• When the obligation to carry out tests applies, the company must report the information regarding the workplace and the results of the tests performed every Monday of each week through the following website: https://empresaresponsable.covid19.cdmx.gob.mx/. Once this process is completed, a covid-19 test report will be generated through the platform itself, accrediting compliance with this obligation.

In certain states, such as Nuevo León, the established guidelines are aligned with those issued by the federal authorities, and to date they remain in effect without any modification or addition according to the stage of socioeconomic reopening in which they are. This is in accordance with the Weekly Health Alert System by Regions.

In the case of the State of Jalisco, the state authority issued the General Guidelines for Safety and Hygiene in the Workplace for Economic Reactivation in relation to the Health Emergency caused by COVID-19, which are in accordance with the federal authorities. These can be consulted using the link: https://periodicooficial.jalisco.gob.mx/sites/periodicooficial.jalisco.gob.mx/files/05-17-20-ter.pdf.

In particular, a “Surveillance Model and Application of Tests for Companies” (or “MOVAPE”, by its Spanish acronym) was established, that obliges companies to register on the SIRA platform: sira.jalisco.gob.mx., in order to designate a link that will maintain communication with the Government of Jalisco. If the company has less than 100 workers per workplace, a sampling will be done according to which the authority will select certain companies, based on epidemiological surveillance criteria, to apply the ordered PCR tests to certain employees.

Companies with more than 100 employees per workplace will be notified by e-mail of the start of the epidemiological surveillance program, and the company must select at least 1 person every 15 days to carry out a PCR test, following the instructions of MOVAPE. This process must be repeated in 15-day cycles and different people must be chosen each time.

At MGGL we adapt to our clients’ needs to design protocols that fit their operational and commercial objectives, acting as strategic allies throughout the implementation of measures applicable in every industry sector and region.

In April 2019 we published a newsletter entitled "Structural effects of the constitutional reform and employment perspectives 2018-2024". In this issue, after following up on the extraordinary conditions caused by the COVID-19 pandemic, we return to the structural labor issues that will surely define a new model for labor and employment matters.

NAFTA and now the USMCA (“TMEC” in Spanish) are international treaties with specific commercial objectives, without any further intention of integrating the countries beyond those. As a result, migration, environmental and labor issues were initially relegated or marginalized within the scope of the treaty. NAFTA and its parallel labor agreement NAALC (North American Agreement on Labor Cooperation) were governed on the following basis: (i) that each country would have an obligation to comply with and enforce its legal framework, (ii) that this legal framework should uphold the eleven core labor principles recognized and protected by the three countries, and (iii) that the means of dispute settlement allowed for, on the basis of the subject matter, the possibility of reaching an arbitration panel and the loss of rights under the treaty.

Thus, only issues of minimum wage, protection of minors, prevention of occupational risks and diseases could reach this last instance, so that the violation of the remaining eight rights could only obtain an assessment by appointed experts. More than thirty violations were denounced before the Labor Cooperation Commission in the first ten years of its existence, without finding that the claims had consequences for the signatory countries.

One of the lessons of globalization is that labor costs are one of the greatest factors of international competitiveness. For this reason, the USMCA reinforces the protection of labor rights and expressly includes the 1998 ILO Declaration on Fundamental Principles and Rights at Work and grants equal protection to all the labor rights protected by the treaty. Chapter 23 of the USMCA provides for specific substantive rights, mechanisms for cooperation, review, dialogue and consultation in the event of a dispute. Although each country retains full responsibility for compliance with its own laws, the cooperative scope between countries includes issues such as "systems of remuneration and mechanisms for the enforcement of labor laws…” and “the institutional capacity of the administrative and judicial labor authorities”, which proves a greater scope of supervision between the parties.

In addition, during the negotiation of the Treaty, the United States imposed Annex 23-A on Mexico, which obliges our country to :

• I) Establish in its labor laws, the right of workers to participate in concerted activities and collective bargaining and to organize, form and join a union;
• II) Prohibit employer dominance or interference in union activities, discrimination or coercion against workers;
• III) Establish and maintain independent and impartial bodies to register union elections and to resolve disputes related to collective bargaining agreements and unions;
• IV) Establishing: (i) an independent entity for the conciliation and registration of trade unions and collective bargaining agreements, and (ii) independent Labor Courts for the resolution of labor disputes;
• V) Provide for an effective system to verify that elections of union leaders are conducted through a personal, free and secret vote; and
• VI) Adopting legislation that required: (i) verification that collective contracts are supported by workers; (ii) majority support for the registration of an initial collective bargaining agreement, through the exercise of personal, free, and secret voting; (iii) existing collective contracts be reviewed at least once during the four years following the entry into force of the legislation verifying that workers are aware of the contract and support the review; and (iv) contracts be publicly accessible.

The obligations contained in the referred Annex are proof of a sensitive change in the perception of labor within the Treaty. The commitments of a collective nature, relating to unionization, union democracy and collective bargaining, as well as the administration of justice through the judiciary, are substantial and may represent risks to the status quo. From our point of view, there are several sensitive factors that should be addressed because, surely, they will be the subject of immediate appeals, namely:

• (I) The experience of the NAALC during the first years of its existence;
• (II) The number of collective management contracts with no union activity or representation;
• (III) The lack of appetite for unionization and adherence to collective activities on the part of the worker base;
• (IV) The criticism and discredit of our wage practices;
• (V) The participatory spirit of North American labor organizations, and the formation of regional or international labor alliances, particularly in the automotive, metallurgical and mining sectors;
• (VI) The new dispute resolution procedure, which allows, through preliminary cooperative dialogues, consultations, ministerial consultations, and in accordance with the dispute resolution procedure of the Treaty, through the reports (resolutions) adopted by panels made up of experts from the three countries, to resolve whether or not certain labor practices are compatible with the standards of the USMCA; and
• (VII) The greater scope of the dispute settlement procedure of the USMCA, which allows for the suspension of tariff benefits for a country if it fails to address the incompatibilities determined by the panel, representing a terrific opportunity for exerting pressure.

In accordance with the above, Mexican companies will have to implement strategic decisions in a very short term. In the area of collective relations, it will be necessary to evaluate, in accordance with the national legal framework and the USMCA, the convenience of legitimizing, through consultation and majority approval of the workers, the collective bargaining agreements, or not.Even though the legal term provided by the reform of 1 May 2019 is four years, it is foreseeable that in high-profile industries and companies with intensive interaction and potential regional competition, the level of scrutiny will be much higher. At MGGL we are ready.

Faced with the expectation of recovery, the authorities will have to anticipate rules that allow the development of the population's activities without putting the health of the workers at risk. In this sense, the Technical Guidelines for Health Safety in the Work Environment (the "Guidelines") is the first document issued by the Federal Government that includes specific conditions to regulate the resumption of social, educational and economic activities, which are available on the website of the Ministry of Labor and Social Welfare. For their part, local health authorities must publish in their official Gazettes the guidelines issued on the resumption of activities, so that these can be enforced.

The actions and plans established in the Guidelines serve as support for companies in the preparation of the "Health Safety Protocol" (the "Protocol") that will govern each establishment; they are initially mandatory for companies considered essential in the construction, mining and transportation equipment manufacturing industry, and for those companies engaged in other essential activities they will constitute only a reference. On the other hand, those companies whose activity is suspended in terms of the Agreements issued by the health authorities, may be required to observe such guidelines, once the health alerts allow the resumption of work.

The Guidelines are part of the strategy for the reopening of social, educational and economic activities, and incorporate an annex where the conditions of manner, form and time in which the activities will be reactivated are described in general terms. These conditions are contained in the Annex to the Guidelines, which includes the following:

1. PHASES OR STAGES OF THE "NEW NORMAL”

The New Normal is a process that aims to reactivate socio-economic activities by avoiding the transmission of SARS-CoV-2, seeking (i) to privilege health and life, (ii) solidarity and non-discrimination; (iii) the economy and efficient means of production; and (iv) shared responsibility (public, private and social). The plan comprises three stages, namely:

Third stage. On 1 June 2020, the reopening stage will begin, subject to the implementation of a weekly"Health Alert”traffic light system by region. The traffic light alert levels are maximum, high, medium and low:

• Maximum level: Only essential activities originally defined on 31 March 2020, as well as those in the construction industry, mining and the manufacture of transport equipment.
• High level: Essential and non-essential activities are allowed with a reduced intensity of maximum 30%, such as manufacturing industry, commerce, restaurants, shopping centers and lodging.
• Medium Level: All activities with a maximum capacity of 60% are allowed, including corporate activities, professional and technical services, aesthetics and barber shops and maintenance and repair companies.
• Low level:Normal economic and work activity, including cultural and sport spaces, cinemas, gyms, bars, massive events, etc.

2. CONTROL STRATEGIES

The Health Authorities established control measures to be implemented in all workplaces, by:

A) The promotion of information that seeks to maintain health standards, and

B) The implementation of health protection measures which, among others, can be

1. healthy distance measures,

2. the dissemination of information,

3. ensuring the availability of medical devices in the workplace; and

4. establishing conditions and policies for health protection, asepsis, hygiene and ventilation.

Companies should implement guidelines that allow them to reduce exposure to the virus for people in vulnerable situations, according to the level of risk they are in, in accordance with the "Health Alert System" and the Guidelines themselves. With respect to people in this group, employers should try to prioritize distance work and establish, through the corresponding committee, measures that ensure the identification, care, protection and non-discrimination of these workers."Health Alert”” y con los propios Lineamientos. Respecto de las personas que se encuentren en este grupo, los patrones deberán procurar priorizar el trabajo a distancia y establecer, mediante el comité correspondiente, las medidas que aseguren la identificación, cuidado, resguardo y no discriminación de dichos trabajadores.

Gross domestic product Mexico

3. PLAN FOR RETURN TO THE WORKPLACE IN LIGHT OF COVID-19

The health authorities have established a sequence of actions that the workplaces will have to follow for the elaboration of the Protocol and that they will have to implement before and during the return to the activities, which comprises seven stages:

1. Planning:Necessary actions to achieve a correct implementation of the sanitary measures; it is mandatory to appoint a committee or responsible for the implementation, follow-up, surveillance and supervision of the measures for the New Normal. They will determine the actions and determine the company’s position in the contingency traffic light system.
2. Definition of health promotion measures:The activities by which health care will be disseminated are established.
3. Choice of health protection measures:This is the designation of the activities aimed at protecting health.
4. Information and training:Actions that are carried out with the objective of informing and teaching the personnel about safety, hygiene, cleanliness, care and in general the indications of the authorities throughout all the stages of the New Normal.
5. Temporary policies:These are measures that are established during the New Normal for the use of spaces and establishment of specific schedules and measures for the prevention of outbreaks in the company. These measures will depend on the Health Alert System; the guidelines provide a table with policies that are recommended according to the level of alert.
6. Advice and support:The Mexican Social Security Institute (IMSS) acts as an advisor in the implementation of the "Guidelines". If applicable, the IMSS must, within 72 hours, issue a qualification of the self-evaluation: i) approving, ii) requesting its extension or clarification (with respect to various aspects or the entire "protocol"), and iii) denying the origin of the protocol, with the possibility to reattempt the procedure. IMSS approval is required to restart activities
7. Completion of the self-evaluation document:The companies will comlete, for each work centre, the document called "Self-evaluation of the Health Safety Protocol", on the digital platform established for this purpose, following the dates and guidelines established in the "New Normal" stages.

Projected unemployment rate

All companies in "Municipios de la Esperanza" can reactivate their functions, without having to validate the protocol, from 18 May 2020 onwards. During the period from May 18 to 31, companies or industries dedicated to essential activities, including those recently approved, which adopt and validate their protocols, will be able to continue their activities. During this period, companies with non-core activities will only be in a period of preparation for the implementation of the protocol.

As of June 1, 2020, the reopening phase will begin for other non-essential activities. The return to activities in the workplaces will depend on their geographical location, and the particular conditions of each municipality, in accordance with the "Health Alert System".

Business Confidence Indicator for the Manufacturing Sector

Micro, small, medium and large enterprises must comply with various obligations, depending on the magnitude of their activities, the number of personnel and the characteristics of the property where they carry out their activities.

The Guidelines provide checklists of measures that synthesize the Health Safety Protocol developed by the Companies and Industries for a safe return to work, prioritizing those related to: i) structural engineering measures; ii) administrative or organizational measures; iii) protection equipment; iv) training; and v) health promotion; planning and management.

At MGGL we are working with our clients so that they can a) determine their situation within the "New Normal" program, b) design the necessary measures to establish their protocols in accordance with the Guidelines and c) begin the implementation of the same, having integral plans for the resumption of work within a legal framework that protects the health of their employees and allows for an orderly reactivation of operations.

AGREEMENT modifying the similar agreement establishing extraordinary actions to attend the emergency.

Yesterday, on April 21, 2020, the Agreement modifying the similar agreement establishing extraordinary actions to attend the health emergency generated by the SARS-CoV2 virus, published on March 31, 2020" was published and entered into force.

This agreement modified and extended the period of suspension of non-core activities until 30 May 2020; this was the only modification made to the previous similar agreement (agreement of 31 March 2020). It is worth mentioning that, by means of this agreement, the Ministry of Health does not issue new measures that could have an impact on labor relations and neither do they modify the scope of the measures published last March 31st. However, the state governments could implement the measures in accordance with the general criteria issued by the Ministry, which have been analyzed in previous bulletins issued by our firm.

The agreement published yesterday foresees that the measures implemented previously by the Ministry of Health will cease to be implemented as of May 18, 2020 in those municipalities of the national territory that at that date present low or no transmission of the SARS-CoV2 virus.

To this end, it states that the Ministry will be the one to define the criteria for evaluating the intensity of virus transmission, as well as any other factor related to the risk of the spread of the disease and the vulnerability of affected populations. Likewise, the Authority will establish guidelines to reduce mobility between municipalities with different levels of propagation, in order to avoid the dispersion of the disease.

The aforementioned Agreement orders that, in all cases, regardless of the intensity of transmission, the protection measures for persons in risk groups implemented on 31 March of this year will be maintained until further notice.

It should be noted that this Agreement orders that the state governments will be responsible, among other things, for establishing and implementing mechanisms to reduce the mobility of inhabitants between municipalities with different degrees of propagation. We estimate that in the next few days, the mechanisms for reducing mobility that each of the local governments deem relevant in order to prevent the spread of the COVID-19 virus will be published in the various official gazettes or periodicals.

At MGGL we reiterate the recommendations and suggestions made in our previous communications, since the legal scope of the measures published on March 31st are still in force and have not been modified. In each particular case we will continue to evaluate and suggest mechanisms to respond to the contingency, however, in case you have any immediate concerns, our legal team remains available for any advice you may need.

Inspections to workplaces to verify wage payments and operation of the companies; technical guidelines of essential activities.

We foresee inspections and an active role of the Federal and State Labor Prosecutor offices to attend clams and grievances.

On March 31st and April 1st, 2020, the General Department of Labor Inspections, through the Office Bearer of the Unit of Dignified Employment, issued the criteria for: (i) the development of inspections for the verification of wage payment and (ii) the development of extraordinary inspections arising from the agreement declaring SARS-CoV2 epidemic (COVID-19) a health emergency.

Furthermore, on April 6, 2020, the Agreement issued by the Ministry of Health, establishing technical guidelines applicable to companies which (a) the suspension of activities may have irreversible effects to its operation (b) are engaged in the courier services and (c) are necessary for the conservation, maintenance and repair of critical infrastructure for the production and distribution of electric energy, was published in the Federal Official Gazette and entered into force.

For order matters, we will analyze first the criteria issued by the General Department of Labor Inspections, in accordance with the following:

(i) Applicable Criteria for the development of inspections during the operation of wage payment or minimum wage payment as of March 30th to April 30th, 2020.

The compliance of the rules issued by the General Labor Department will be enforceable to the workplaces of federal jurisdiction (article 527 of the Federal Labor Law “FLL”), with respect to those which by claim or complaint is known that exists a possible breach of the wage payment or its decrease.

The review term will cover from February 15th to the inspection date.

The aspects and documents subject of inspection, are the following:

1.- Record proving the payment of integrated wage.

2.- The inspector will verify that the payroll deductions, are in accordance with the provisions set forth in the FLL and with the limits set forth by the Law or those carried out as consequence of a judicial resolution (alimony).

3.- List of positions of the workplace and wage for each position.

4.- The inspector will verify, that the wage payment is effectively paid in accordance with each position.

5.- In the event that the inspector detects that the company did not pay the wage or paid a lower amount, the minutes will identify the data of the employee and will request copy of document subject to review.

6.- In the event that the company incompletely provides documents or do not provide any, a term of 5 days will be granted to the company to develop observations and offer evidence in connection with the facts contained in the inspection minutes.

In the event the labor inspector determines the existence of breaches to the wage payment or its decrease, he/she shall communicate such event to the competent prosecuting authority. In addition to the foregoing, the FLL establishes the possibility to impose a sanction taking into account the intent, gravity, possible damage, economic capacity, and the number of affected workers, which may be from 50 to 5,000 UMAs (Unidad de Medida y Actualización - $86.88 Mex.Cy. daily UMA).

In accordance with what we have established in several articles, we consider that the execution of agreements between the parties may justify salary adjustments, as long as they are proportional and consistent, during the emergency period, and must be presented to the Authority, in case they are required in an eventual Inspection.

(ii) Applicable criteria for the development of extraordinary inspections arising from the agreement declaring the SARS-CoV2 epidemic (COVID-19) a health emergency due to force majeure.

Considering the “Agreement establishing extraordinary actions to address the health emergency generated by the SARS-CoV2 virus (COVID-19)”, the Ministry of Labor and Social Welfare (“MLSW”), issued the criteria to carry out such inspections, based on the following:

A.- Verify the compliance of provisions issued by the Ministry of Health regarding the health emergency.

B.- The inspections that will be carried out by the Authority, will have the nature of “extraordinary”, which means that no previous notice or legal summon will be given to employers and companies. It should be expressly noted that Labor Inspectors may not interview employees in the workplaces that will be inspected.

C.- The companies and employers will be inspected when the Authority has knowledge of the existence of any possible breach to the labor provisions or, in the event of any claim or complaint that the employees are working in conditions that risks their health due to COVID-19 virus.

D.- For the corresponding inspection purposes, the Labor Authority most take into account the existence of workplaces with essential activities and workplaces with non-essential activities.

E.- Carried out these extraordinary inspections, the Labor Inspectors will require the companies to be provided with the following information to determine if the company may be considered as a workplace to continue activities:

1.- General Information of the Workplace (name or corporate name, domicile, telephone, fax, electronic mail, commercial activity, deed of incorporation and its amendments, real activity of the company in the workplace, economic activity in the NAICS (North American Industry Classification System), social security scheme, number of Employer Registry, class and risk premium, Federal Taxpayer Registry (RFC, for its initials in Spanish), type of establishment, form of integration of workplace, its measures, information in case of having a contractor, number of employees, employer chamber, union, type of contract, date of the Collective Bargaining Agreement, equity and tax domicile).

2.- Description of the productive procedure or economic activity (description of the productive procedure or economic activity, products or by-products obtained, waste and residues, machinery and equipment).

In the event the Inspector considers that the workplace is authorized to continue activities, he/she will verify that the following measures are respected:

1.- Avoid congregations of more than 50 people.

2.- Employees must wash hands frequently.

3.- The persons must apply the respiratory protocol when sneezing or coughing.

4.- No kiss, hug or shake hands greetings.

5.- Compliance of all measures of healthy distance issued by the Ministry of Health.

If the Labor Inspector detects people over the age of 60, pregnant women or in immediate postpartum, or with a diagnosis of high blood pressure, diabetes mellitus, chronic heart or lung disease, immunosuppression (acquired or caused), renal or hepatic insufficiency, in all events, will order that such persons retire from the workplace to stay at home. Furthermore, the Inspector will be authorized to implement physical tours in the workplace and will prepare the inspection minutes in accordance with NOM-030-STPS-2009.

In the event that the Inspector considers that the workplace does not comply with the requirements to continue activities, the Inspector will solely require the employer to suspend activities immediately, instructing the employees to stay at home. If it is regarding a workplace that carries out complex industrial procedures that merit certain areas or activities to continue, the Inspector shall report such event to his/her hierarchical superior to receive the corresponding indications.

The analyzed document foresee that in the event the employer denies to suspend activities, the Inspector shall inform such situation to the person in charge of the Office of Federal Labor Representation, who, in turn, will file the corresponding complaint before an official of the Prosecutor´s Office.

Meanwhile, in connection with the technical guidelines of certain activities related to the extraordinary actions to address the generated health emergency, the Ministry of Health determined the following:

(a) Companies which suspension has an irreversible effect to its operation. These are the companies of steel, cement and/or glass production, as well as services of technology of the information that guarantee the continuity of the informatic systems of the public, private and social sectors. To be able to continue with the activities that impede the affectation of the suspension, these companies shall inform the Ministry of Economy in a term no longer than 24 hours as of the publication of the Guidelines, the total number of the indispensable workers in order to do not compromise its operation. It should be emphasized the exception to the compromised companies in the projects of Dos Bocas, Maya Train, Felipe Angeles Airport, Railway Bridge (Corredor Transístmico – Istmo de Tehuantepec); as well as the existent agreements considered indispensable for Petróleos Mexicanos and the Federal Commission of Electricity.

(b) Courier Services. The courier services include the companies and platforms of electronic commerce, provided that they comply with the measures issued by the Ministry of Health.

(c) Minimum activities of the companies that ensure the production and distribution of indispensable services: electric energy. The mines and companies that distribute coal will maintain their minimum activities to satisfy the CFE’s demand, informing to the Ministry of Economy, the form and terms described before, the number of minimum workers required for such purposes and shall comply with the measures issued by the Ministry of Health.