On April 4, 2024, the Ministry of Labor and Social Security (hereinafter “STPS”), published in the Official Gazette the “DECREE by which Section III of Article 994 of the Federal Labor Law is amended”, which main purpose is to impose penalties on employers for not being affiliated to the National Employees’ Consumer Fund Institute (hereinafter “INFONACOT” for its acronym in Spanish).

Following the reform, the Federal Labor Law (hereinafter “LFT”) provides the STPS with the authority to apply a fine from 50 to 1,500 Mexican Units of Measurement and Updating (UMA) to employers who fail to comply with the obligation set forth in section XXVI of the LFT, regarding its affiliation to the INFONACOT, in order for employees to access the credits that such entity provides.

This reform seeks to strengthen compliance with labor regulations and guarantee respect for the employees’ rights. Likewise, it aims for a fair and equitable labor environment, in which both employers and employees fulfill their responsibilities in an appropriate manner.

It is important to note that the affiliation is free and may be carried out through the Institute’s website: https://login.fonacot.gob.mx/login/external?returnUrl=https://tramites.fonacot.gob.mx.

Finally, it shall be considered that the reform became effective as of April 5, 2024. Therefore, it is essential that employers not yet affiliated, proceed to register as soon as possible in order to avoid the imposition of fines.