Mexico: INFONAVIT Law and Federal Labor Law amended to include new obligations for employers

The reform introduces relevant modifications that may imply new operational challenges for companies, as it establishes new obligations for employers. Failure to comply with these provisions could result in tax audits or even in the determination of tax credits for failure to comply with the payment of INFONAVIT credit amortizations.

From the analysis of the text of the reform, the following changes are highlighted:

1. Elimination of suspension of discounts:
   • Employers must continue to pay discounts for INFONAVIT credits, regardless of whether the worker is disabled or does not receive a salary.
   • Failure to comply with this obligation may result in penalties or requirements for employers and may also result in debts owed to workers for payments not made.
2. Elimination of reimbursement agreements:
   • The scheme for the payment of discounts is modified, so that the employer must cover the amortizations, regardless of the worker's salary.
   • The employer must pay the amortization without the possibility of IMSS reimbursements.
3. Joint and several liability:
   • The employer is jointly and severally liable for the worker's credit regardless of whether the worker generates income.
   • If the worker stops generating income, the employer must continue to pay the amortization.
   • There is no recovery mechanism for the employer for payments made when the worker does not generate income.
4. Social leasing:
   • The concept of social leasing is included.
   • Employers will have to deduct and pay for this concept.
   • INFONAVIT will have 180 days to issue the rules regarding social leasing.
5. Changes to the Federal Labor Law:
   • The possibility of making the payment of installments to cover housing rents is incorporated.
   • The development of social leasing programs has been foreseen.