Potential new law for employers of domestic workers

This could be a game changer for the way that maids and gardeners are employed around here. Thoughts??

https://mexiconewsdaily.com/news/legislation-domestic-workers-health-insurance/?utm_source=Mexico+News+Today&utm_campaign=e3276e0a54-EMAIL_CAMPAIGN_7_11_2021_12_25_COPY_01&utm_medium=email&utm_term=0_672b61ccd6-e3276e0a54-349845361

Legislation gives domestic workers access to health insurance and other benefits

It would create new legal obligations for employers of housekeepers, gardeners and more

Published on Friday, March 18, 2022

The Senate has approved a reform that would ensure that Mexico’s more than 2 million domestic workers have access to social security benefits.

Senators voted unanimously in favor of reforming the Social Security Law to make the enrollment of domestic workers in a simplified IMSS social security scheme obligatory.

The Supreme Court ruled in 2018 that domestic workers must must have access to social security benefits like any other worker, but legislation to support its decision was not in place.



The United Nations Entity for Gender Equality and the Empowerment of Women said in February that only 3% of 2.2 million domestic workers receive social security benefits.

The reform approved by the Senate Thursday will now be considered by the lower house of Congress. If it becomes law, domestic workers will have the legal right to access benefits such as health care, sick leave, maternity leave, paid vacations, worker’s compensation, childcare, life insurance, severance pay and a pension.

Employers of housekeepers, gardeners, drivers, nannies and more will be legally obliged to register them in a simplified social security scheme and pay the relevant contributions.

Presenting the reform, Morena party Senator Napoleón Gómez said that recognizing the social and labor rights of domestic workers is urgent.

“For a long time, domestic workers have invested time and effort in work that is essential for the correct functioning of society but for which they receive little pay and no recognition,” he said.

“This is the enormous debt we have with a sector of the population that is mainly made up of women, 94% currently, according to data from [national statistics agency] INEGI.”

With reports from Milenio, El Financiero and La Jornada

I don’t mind paying but can’t imagine the nightmare of the paperwork, filing, etc.

That's what I was thinking. Sounds like the lawyers and company will be kept busy for a while registering everyone and likely this will become something that needs to be renewed every year. The "agencies" like Spring Clean will become far more attractive.

Are they going to start requiring all these workers to pay income taxes?

I am all for them getting the benefits but, as pointed out, it's going to be a logistical nightmare to fulfill. Now, lemme see, how much for three hours of work once a week... It's also going to be a nightmare for the part time workers to keep track of multiple contributors.
BTW, ask Spring Clean point blank if they provide benefits to all their workers. They do for their full time employees but most of their staff is on call and part time.

Won’t the workers then have to pay taxes on their income which I’m sure they don’t currently do.

Would this include someone who does not come from an agency but works 4 hours a week for a set fee? In this case, her services cost 400 pesos. I don't know how many people use her services.

That is exactly to whom this new law is targeted gringal.

ferret wrote:That is exactly to whom this new law is targeted gringal.

That's what I was afraid of. Sigh...paperwork!!

I imagine many will prefer to keep their employment "under the table" as they will not want to pay income tax. Many do not even want bank accounts as to not get tracked in the system.

But...how to know who??

Ask them I suppose? If this reform becomes law I will be speaking with my lawyer first and the employees second. If the cost and hassle are too high I will have to consider the options.

To avoid the hassle and cost make your employees contract employees.

That's what I would need to talk with a lawyer about. I imagine you would have to "fire" them, pay all the severances and then hire them back under contract.

If they’ve been working under the table all along which I assume they have been, wouldn’t firing them, etc. notify the government they’ve been not paying taxes all along? Not opposed to paying severance but also don’t want the government to jump on them to collect back taxes and maybe penalties.

Gamina wrote:To avoid the hassle and cost make your employees contract employees.

Does anyone have a "sample contract" to share?

Carry Bean wrote:If they’ve been working under the table all along which I assume they have been, wouldn’t firing them, etc. notify the government they’ve been not paying taxes all along?  Not opposed to paying severance but also don’t want the government to jump on them to collect back taxes and maybe penalties.

I guess all of this will need to be discussed with the employees. They can be given a few choices including just continuing on the way things currently are. The only thing I will do is get whatever they choose in writing.

Good idea, but I’m not hopeful this won’t get passed into law.