COVID-19. Three legal aspects for your company.

As is well known, the current crisis is directly affecting the economy and operation of your MSME. To a large extent, this is due to the social distancing that comes with the reduction in the consumption of your products and services.on your feet.

However, social distancing is not the only element that contributes to the deterioration of your MSME, but that another element to be addressed is the legal one in labor, social security, fiscal and even criminal matters.

1. What should you consider in labor and social security matters? It is important to know that, despite the fact that it was declared as a health emergency due to force majeure and it was established that all non-essential activities must be suspended (non-essential activities that do not belong to the branches of health, safety and protection, energy, water, food and essential, among others), there is no legal basis that allows the reduction of the salary or its total suspension, soyou are obliged to pay full and full salary to your workers, whether or not they are working.

What happens if you don't have the financial support to achieve it? Don't worry, you can enter into an agreement with your worker, by which you establish some other modality for the payment of the salary. This agreement must be ratified before the Conciliation and Arbitration Board. It's about negotiating and getting a deal that benefits you and your workers.

As for social security, you still have to pay worker-employer contributions, however, on April 13, 2020, a statement was issued by the Technical Council of the IMSS that allows the conclusion of an agreement to defer the payment of employers' contributions by 80% for a maximum period of 48 months. Workers' dues still have to be paid in full and in full.

2. What is happening in tax matters? There are still no criteria or decree that establishes that tax exemptions, cancellations and deferrals are appropriate, however, a wide variety of amparos are already being processed to protect those who promote them, so that obligations to pay taxes and various contributions are suspended. It is important to mention that the amparo has not yet been resolved or any resolution has been issued, so everything is “we'll see”.

3. And now, Is there also criminal liability? The answer is “IT DEPENDS”.

If you are a subject of responsibility when you did not comply with the measures of the health emergency, you did not suspend activities and, most importantly, you forced or conditioned your worker to work.

If you informed your worker that his attendance was not mandatory nor did you condition him to attend, but that the worker attended of his own free will, then you are not subject to any criminal liability.

As far as your MSME is concerned as a legal person, is exempt from criminal liability.

So now you know, take these three factors into account and implement the necessary measures to avoid sanctions or responsibilities that we don't want to face. I recommend a culture of prevention and compliance.

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