stps, Mexico's Ministry of Labor and Social Welfare

STPS The Mexican Ministry of Labor and Social Welfare

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STPS: The Foundational Pillar of Labor Compliance in Mexico

The STPS is the Ministry of Labor and Social Welfare in Mexico. For any foreign company establishing or operating a business in Mexico, understanding the country’s regulatory landscape is paramount. While entities like the SAT (Tax Administration Service) and the IMSS (Social Security Institute) manage the fiscal and social welfare aspects of your operation, there is another equally critical government body that oversees the very foundation of your relationship with your workforce: the Secretaría del Trabajo y Previsión Social (STPS), or the Ministry of Labor and Social Welfare.

The STPS is the federal entity responsible for enforcing Mexico’s comprehensive labor laws. Additionally, it aims to ensure the safety, health, and rights of all workers in the country. Consequently, for any business with employees in Mexico—whether one or one thousand—compliance with STPS regulations is not optional; it is a fundamental legal requirement. Misunderstanding or ignoring your obligations under the STPS can lead to significant financial penalties, operational disruptions, and legal liabilities.

The Ultimate Guide To STPS

This guide provides a comprehensive overview of the STPS. We designed it specifically for business owners, general managers, and HR directors. We will explore the Ministry’s core functions, its relationship with the Federal Labor Law, the critical importance of the Official Mexican Standards (NOMs), and what you can expect from an STPS inspection overall. Ultimately, this document will provide the clarity you need to navigate Mexico’s labor landscape with confidence and ensure your operation is built on a foundation of compliance altogether.

The Ministry of Labor and Social Welfare of Mexico

Mexico's Ministry of Labor and Social Welfare (STPS)

The Mexican Ministry of Labor and Social Welfare is the Federal Government Department in charge of all social health services in Mexico. The Ministry is a member of the federal executive cabinet.

Founded 1941
Minister
Marath Baruch Bolaños López
Dependents
Fonacot
Federal Conciliation Center
Jurisdiction
Federal
Reports to
President

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Founded in 1941

Operates Under The President

Federal Level Authority

The Core Functions and Mandate of the STPS

The STPS is a cabinet-level ministry of the federal government with a broad and powerful mandate. Its primary mission is to create a balance between the factors of production—capital and labor—by ensuring that all employment relationships adhere to the legal framework established in the Mexican Constitution and the Federal Labor Law.

To achieve this, the STPS carries out several key functions:

  • Enforcement of Labor Law: First and foremost, the STPS is responsible for supervising and enforcing the Ley Federal del Trabajo (LFT), or Federal Labor Law accordingly. This includes verifying that companies comply with regulations regarding working hours, wages, benefits, profit sharing, and termination procedures altogether.

  • Workplace Safety and Health: Further, a central and highly visible function of the STPS is to establish and enforce the standards for workplace safety and health. Hence, this is accomplished primarily through the creation and inspection of Normas Oficiales Mexicanas (NOMs), which set specific technical requirements for everything from fire safety to ergonomic risk factors.

  • Labor Relations: Also, the STPS plays a role in mediating the relationship between employers, employees, and unions. Therefore, it maintains the official registry for labor unions and works to promote social dialogue and collective bargaining.

  • Workforce Training and Employment Services: Through its sub-agencies, the STPS also works to promote employment and workforce development overall. This certainly includes operating the Servicio Nacional de Empleo (SNE), or National Employment Service, which helps connect job seekers with employers.

In short, if a regulation pertains to the conditions under which an employee works, it almost certainly falls under the jurisdiction of the STPS.

The Ley Federal del Trabajo (LFT): The Rulebook for Employers

The primary legal document that the STPS enforces is the Ley Federal del Trabajo (LFT). This comprehensive federal law governs all aspects of the employer-employee relationship in Mexico. For any foreign company, it is essential to understand that the LFT is highly protective of employee rights, and its provisions are generally not negotiable or waivable.

LFT Obligations Enforced By STPS

Key obligations for employers under the LFT include:

  • Working Hours: The LFT establishes a maximum standard workweek of 48 hours, typically spread over six days. It defines three official shifts (day, night, and mixed) with specific hour limits for each. Any work performed beyond these limits is considered overtime and must be paid at double or, in some cases, triple the normal rate.

  • Wages and Bonuses: In addition to paying at least the national minimum wage, employers are legally required to pay two significant annual bonuses.

    • Aguinaldo (Christmas Bonus): All employees are entitled to an annual bonus equivalent to at least 15 days’ salary, which must be paid by December 20th.

    • PTU (Profit Sharing): Most companies are required to distribute 10% of their annual pre-tax profits among their employees (excluding senior management).

  • Paid Leave: The LFT mandates paid time off. Employees are entitled to a minimum of 12 days of paid vacation after their first year of service, a number that increases with seniority. In addition, employees receive a “vacation premium,” which is an extra payment equivalent to 25% of their salary during their vacation period.

  • Termination and Severance: The LFT establishes strong protections against unjust termination. If an employer terminates an employee without one of the legally specified “just causes” (such as dishonesty or serious insubordination), the employer is obligated to pay a significant severance package. This typically includes three months’ salary, a seniority premium, and any accrued wages and benefits.

Compliance with these core provisions of the LFT is a primary focus of any STPS audit or inspection.

NOMs: The Technical Heart of STPS Compliance

Perhaps the most practical and day-to-day interaction a manufacturing or industrial company will have with STPS regulations is through the Normas Oficiales Mexicanas (NOMs). These are a series of detailed, technical standards that specify the exact requirements for maintaining a safe and healthy workplace. There are dozens of NOMs, each covering a specific area of risk.

Most Important STPS NOMs

While it is beyond the scope of this guide to detail every NOM, some of the most critical and commonly inspected standards include:

Safety NOMs

  • NOM-001-STPS: This standard governs the physical conditions of buildings, including requirements for floors, walls, ceilings, and walkways to ensure they are safe.

  • NOM-002-STPS: This is a crucial standard that details the requirements for fire prevention and protection. It mandates specific types of fire extinguishers, alarm systems, emergency exits, and employee training based on the level of fire risk at the facility.

Organization NOMs

  • NOM-017-STPS: This standard regulates the selection, use, and management of Personal Protective Equipment (PPE). It requires employers to perform a risk analysis for each job role and provide the appropriate certified PPE (e.g., safety glasses, steel-toed boots, gloves) at no cost to the employee.

  • NOM-019-STPS: This NOM mandates the creation and operation of a “Safety and Hygiene Commission” within the workplace. This commission, comprised of both employer and employee representatives, is responsible for investigating accidents, identifying potential hazards, and recommending corrective actions.

  • NOM-030-STPS: This standard requires companies to have “Preventive Services for Safety and Health at Work,” which involves creating a formal plan based on a diagnosis of the risks present in the workplace.

Health NOMs

  • NOM-035-STPS: A relatively new and highly significant standard, this NOM requires employers to identify, analyze, and prevent psychosocial risk factors at work. This includes issues related to workload, work-life balance, and workplace violence. The standard requires companies to have policies in place to address these risks.

  • NOM-037-STPS: Another new standard, this one regulates teleworking (home office). It establishes the obligations for employers regarding employees who work remotely more than 40% of the time. This includes providing necessary equipment and contributing to home electricity and internet costs.

Compliance with the applicable NOMs is not optional. During an inspection, STPS officials will methodically check for documentation, training records, and physical evidence that a company is adhering to these technical standards.

Other Important NOMs

STPS Inspections: What to Expect

The STPS indeed has the authority to conduct inspections of any workplace at any time. They do this to verify compliance with the LFT and the NOMs after all. So, understanding this process is crucial for any business.

If an inspector finds violations, the company will be given a set period to correct them. Failure to do so can result in significant fines, and in severe cases, the temporary shutdown of the facility. Therefore, maintaining a constant state of “inspection readiness” is a critical operational best practice.

Types of STPS Inspection

There are several types of inspections:

  • Initial Inspections: For new businesses to verify their initial setup.

  • Periodic Inspections: Regularly scheduled inspections based on the company’s industry and risk level.

  • Extraordinary Inspections: These are typically unannounced and can be triggered by an employee complaint, a workplace accident, or other specific concerns.

Inspected Areas

During an inspection, an STPS official will typically review three main areas:

  1. Physical Conditions: The inspector will tour the facility to visually verify compliance with safety NOMs. They will check for things like fire extinguisher placement, safety signage, machine guards, and the general condition of the workplace.

  2. Documentation: The inspector will ask to see a wide range of documents. This includes employee contracts, payroll records, proof of IMSS registration, training records for safety procedures, the minutes from the Safety and Hygiene Commission meetings, and the company’s formal analysis of psychosocial risks under NOM-035.

  3. Employee Interviews: The inspector has the right to interview employees privately to verify that they have received the required training and PPE, and to ask about their general working conditions.

Conclusion: Building a Foundation of Labor Compliance With STPS

The Ministry of Labor and Social Welfare is indeed a powerful and proactive entity in Mexico. Hence, it plays a central role in the life of every business. Certainly, navigating the complexities of the Federal Labor Law and the vast array of technical NOMs requires dedicated expertise and a serious commitment to compliance.

Consequently, for foreign companies, attempting to manage these obligations without expert local guidance is a significant risk. The cost of non-compliance—in terms of both fines and operational disruption—can be immense. A successful operation in Mexico is built not just on a good business plan. It is built on a solid foundation of legal and regulatory compliance.

At Start-Ops, we specialize in helping companies navigate this complex landscape overall. So, we provide the expert guidance and administrative support necessary to ensure your operation is fully compliant with all STPS regulations from day one. We manage the administrative burden of labor law so you can focus on what you do best: growing your business.

Contact us for a strategic consultation. Let’s explore how we can help you build a compliant and successful operation in Mexico.

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