By Gabriela Cantú
In a globalized market, companies that comply with legal, labor and tax regulations tend to be more competitive. Those entities that are characterized by frequent and impeccable execution of their obligations have a greater capacity and ease to integrate into international supply chains, since their practices fit, it could be said, with almost any requirement. In this way, expectations of growth and development are strengthened and enhanced, creating new and better opportunities for all members of the organization. In the face of the Nearshoring effect currently experienced in Mexico, it is vital that these practices become the norm and not the exception.
It is not surprising that these corporations operating in Mexico are the ones that attract and retain the best talent and the most attractive investments. Their work environments are positive, and, consequently, employees perceive that not only their rights are respected, but every provision is seen as a path to excellence. For this reason, employees will most likely replicate this in their daily work, feeling more motivated and committed.
More than half of jobs in Mexico come from the informal sector, however, its percentage of contribution to the national GDP is reduced to only 24% according to INEGI 2023 data (1). The latter translates from the employee’s perspective as instability, lack of job protection and, above all, inequality. Because of this, the issue becomes a commitment for every CEO as captain of the ship, to ensure that the provisions are met in a timely manner, even if this often implies additional impacts on the pocketbook. Although compliance with regulations can be a significant burden, it must be perceived as a key element that leads to success.
It is important to emphasize that México needs bills, programs and policies that encourage formalization. However, you as a company manager, by ensuring that your employees are registered in the appropriate occupational risk class, by complying with the payment of employer-employee contributions, by observing fiscal and legal regulations, among others, you will contribute not only to the growth of the organization but also to our respective industries and, especially, to our country.
It is common to find companies that, to save “an expense” in paying mandatory employer contributions to the IMSS, opt to register their employees in a risk class that does not correspond to the activities they perform. Some companies also resort to registering their employees with a salary lower than what they receive.
Unfortunately, these practices can have significant consequences for workers, as their right to fair and complete remuneration is not guaranteed. In addition to the failure to comply with regulations, which can result in a very expensive fine for the company and even the freezing of funds in bank accounts, the employee is also directly harmed.
In the event of a serious incapacitating accident, or in the unfortunate case of a death, the calculation of the employee’s pension would be based on the salary registered and not the one received, directly harming the employee and his family. Likewise, during the time that the employee contributes in this way, his/her contributions to INFONAVIT and Afore will be affected. All this adds up to a regrettable deterioration, affecting the employee’s capabilities in terms of social security benefits.
Peace of mind along a healthy environment in the workplace are the result of appropriate practices and compliance with regulations and provisions in compliance with the authorities. It would be interesting for you to ask yourself if the company where you work and/or manage, or that you own, complies with all the precepts that the Mexican authority indicates. If the answer is affirmative, then peace of mind and genuine happiness will be in the air. Otherwise, the disturbing ghost of the potential law violation will not allow that company to move towards continuous improvement and towards healthy and sustainable growth.
Working with vendors who do not comply 100% with employer-employee obligations towards their employees is a matter of professional ethics and a direct liability for the company hiring vendors out of compliance. Mexican Federal government has implemented mechanisms and proposals to counteract these malpractices. It has become extensive for companies that hire vendors who fail to comply with their obligations to their employees to receive penalties ranging from financial penalties, closure of operations, to jail time.
Without question, fully meeting and complying with all labor and legal provisions is not an easy task. It is important to surround yourself with a prepared work team, seek professional advice and keep your management team updated. All the above must be aligned with the vision of the company’s Board of Directors and Management. In summary, the price of compliance is the peace of mind of all members of the organization.
(1) INEGI, 2023. Medición de la economía informal (MEI). Recuperado el 10 de agosto de 2024 de Medición de la Economía Informal (MEI) 2022 (inegi.org.mx)
Gabriela Cantú currently works as Administration and Finance Manager for TTX Mexico & its subsidiaries and has more than 25 years of experience as an executive with a specialty in finance, tax, labor and specialized education in various markets and industries. Gabriela is a Certified Accountant from ITESM Campus Monterrey (CP’97), has a bachelor’s degree in education from the Universidad Pedagógica Nacional (LED’08), and has a master’s degree in education from ITESM Campus Monterrey (MEE’13). She is an active member of the Chemical Coaters Association International CCAI Capítulo en Español. Gabriela currently resides in the metropolitan area of Monterrey, N.L., México.
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