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ANALYSIS OF MEXICAN DECREE ISSUED ON APRIL 30, 2009 Federal order to suspend activities

ANALYSIS OF MEXICAN DECREE ISSUED ON APRIL 30, 2009 Federal order to suspend activities. A special presentation for the WMTA By: Mariano Esparza. What to do?, How to face the decree?. Reference of the Law:

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ANALYSIS OF MEXICAN DECREE ISSUED ON APRIL 30, 2009 Federal order to suspend activities

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  1. ANALYSIS OF MEXICAN DECREE ISSUED ON APRIL 30, 2009Federal order to suspend activities A special presentation for the WMTA By: Mariano Esparza

  2. What to do?, How to face the decree?

  3. Reference of the Law: • Article 427 of the Federal Labor Law indicates that: “Are causes of temporary suspension of the labor relations: • I.- The “Force Majeure” or an Act of God”, not attributable to the Employer, …Etc.

  4. ANALYSIS OF ADVANTAGES AND DISADVANTAGES IF YOU DID NOT WORK: • I.- Pay the salary. • ** ADVANTAGES: • a) No controversy • b) No subject to interpretation • c) Possibly, be seen as good example by government. • d) Possibility to apply for tax benefits published on May 7, 2009 by the Mexican IRS. • ** DISADVANTAGES: • a) Expense: Paying a salary with no service received from employee. • II.- Not paying the salary. • ** ADVANTAGES: • a) Save the salary. • ** DISADVANTAGES: • a) Nonconformity from employees; • b) Possible claims from employees before the Labor Board, which is not recommendable since non fulfillment with labor rules would be evidenced. • c) Possible claims from employees before the IMSS. • III.- Pay a percentage of the salary • ** ADVANTAGES: • a) Save a part of the salary. • ** DISADVANTAGES: • a) Nonconformity from employees, as explained within the above mentioned point.

  5. A special presentation for the WMTA By: Mariano Esparza mev@nafta-law.com

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