Dear Clients and Friends:
This is in response to inquiries regarding the announcement by the Mexican Health Department as published yesterday in the Official Gazette of the Federation. As a result, we are providing to you herein below with a list of the most relevant considerations and our interpretation.
The main objective of these rules is to create social distance.
Basically, the announcement is intended to protect people over 65 years of age and other groups at risk, such as: pregnant, or breastfeeding women, children under 5 years of age, disabled, those with chronic illnesses, those with a condition that affects their immune system.
Those individuals that are not able go to work as a result of the announcement will continue to generate a salary and benefits as per Mexican Labor Law.
Nothing in the resolution is to be considered as a health contingency decree and as a result it is not implying that the work is to be suspended. Furthermore, the announcement expressly states that labor relations continue and that the individual or collective labor agreements have to be observed. The Mexican Federal Labor Law is to be observed as well.
Moreover, employers are not to apply the terms and conditions established in article 429 of the Mexican Labor Law which basically reads that employers would pay their employees one day of salary during the work stoppage. Again, this does NOT apply.
Gatherings of more than 100 individuals are prohibited, as well as those involving concentration or transit or movements of persons. In order to be able to continue operating, plans and actions are to be implemented, and observed in order to accomplish and fulfill functions that are essential as it pertains to the mitigation and the control of health risks.
Companies, establishments, and any operation whose work is required to face the contingency can continue operating. The announcement goes on to describe in an illustrative manner and not restricted manner those businesses or entities that may continue operations such as hospitals, clinics, pharmacies, labs, medical and financial services, telecommunications, tourism services such as hotels and restaurants, markets, supermarkets, transportation and gas distribution, as long as they are not located in closed spaces which create agglomeration.
If you have any concerns about whether you fall within any of the above classifications, we suggest that we discuss over the phone to make an informed decision. This to avoid the potential liability.
We understand that the Ministry of Economy has informed that maquilas and manufacturing entities should continue operations but observing health and sanitary rules, as well as the protection provided to vulnerable people.
We will continue monitoring the situation and will provide additional, necessary information in a timely fashion.
Sincerely,
Ernesto Velarde Danache, Inc.
