On April 4, 2024, the “Decree reforming Section III of Article 994 of the Federal Labor Law” was published, modifying the amount of fines for non-compliance with some employer obligations. Among the most important is the affiliation of the workplace to the National Fund Institute for Workers’ Consumption (FONACOT Institute).

According to the report presented by the Congress of the Union, the Reform aims to promote consumption, economic activity, and foster financial inclusion in the Mexican economy. Likewise, due to the changes that have emerged in labor matters, particularly regarding the subcontracting of specialized personnel services, registration with the FONACOT Institute has become a requirement and inspection issue for companies that provide and obtain these specialized personnel services.

The affiliation process is free and streamlined, so we highly recommend reviewing the particular situation of each employer, whether an individual or legal entity, to ensure compliance with this obligation.

At FRALLA, we have specialized personnel who can assist in reviewing the affiliation of your workplace to avoid possible fines in this regard.

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April de 2024

Mexico City