Client Alert

On July 15th, 2020, local congresswoman, Leticia Estrada Hernández, presented a bill to repeal the Condominium Real Estate Property Law of Mexico City and therefore, issue a new one in accordance with local civil and notarial provisions, as well as the imposition of prohibitions and sanctions on temporary accommodation services such as Airbnb.

The draft submitted before CONAMER (National Commission for the Improvement of Regulation, CONAMER for its acronym in Spanish) is part of an expected group of secondary regulation for the industry whose term for discussion by Congress expires on December 15th, 2020, in accordance to the last extension granted by Mexico’s Supreme Court of Justice, and as expressed by its name, in the event of its approval, it would partially, excluding industrial use, govern the non-recreative use of cannabis.

On July 27th, 2020, the Federal Government published the criteria that establishes the mechanism on the return to normal economic activities of “vulnerable employees”. As a consequence, employers are obliged to implement a diagnosis and registry of the diseases and existing conditions by their workers, in order to comply with the sanitary measures imposed by the authority and that, in the event of a sanitary inspection, not held responsible and condemned to any sanction.

At the morning conference on July 22nd, the federal government presented an initiative with different amendments to the pension system, which was prepared in collaboration with the Business Coordinating Council (CCE, by its acronym in Spanish) and the Confederation of Workers of Mexico (CTM, by its acronym in Spanish), that has by objective, to reduce the weeks of contribution from 1,250 (25 years) to 750 (15 years), as well as to increase the mandatory retirement savings contributions, which refers to those made up by the worker, company and government contributions, from 6.5% to 15% in a term of eight years where mainly the employers will almost triple their contribution.

As a mechanism to provide liquidity to companies, it has been identified that several of them have chosen to obtain resources through other entities or individuals (parent companies, subsidiaries or members of the same group). Therefore, we recommend analyzing the nature of these resources, as this could result in tax implications and generate greater obligations.

After the Agreement by which the suspension of non-essential activities was established and in which was also specified that the return to activities should be made gradually, orderly and staged, and by the Agreements published on May 14th and 15th, 2020, in the Federal Official Gazette, it was specified that said activities must implement protocols, training of personnel for safety in the work environment, readjustment of spaces, among others in order to return to work. Likewise, specific rules are established for the construction, mining and manufacturing of transport equipment industry in order for them to start operating on June 1st, 2020.

Given the global pandemic caused by SARS-CoV2 virus (COVID-19), on March 31th, 2020, an executive order was published in the Federal Official Gazette which ordered the immediate suspension of non-essential activities and it was also established that the reopening of activities must be done in a gradual, orderly and in various stages way, in consequence on May 14th, 2020, the Ministry of Health issued an Agreement through which the different stages for the reincorporation of activities are established, as well as the traffic light system which through colors, will indicate the situation of the different municipalities throughout the country to establish their return to economic and public activities, as well as in closed spaces and school activities.