Mexico’s Chamber of Deputies Discussing Plant Closure Legislation

ByArturo Rivero

This article by Arturo Rivero originally appeared on April 15, 2026 at Lafuentelaboral.

The UMA/Unidad de Medida y Actualización is an economic reference in pesos used by the Mexican government to determine the amount of payments for obligations, fines and the like. As of 2026, the daily UMA value is MXN117.31 or $6.79USD.

In the midst of a wave of industrial closures on the northern border, seeking to force makeup, manufacturing and export companies to notify at least 90 days in advance of any closure, relocation or permanent suspension of operations, reveals an initiative being discussed in the Chamber of Deputies.

Failure to comply, an unjustified collective dismissal will be presumed, with fines of up to 70 thousand UMAs ($475,636.61USD)

The proposal aims to reform the Federal Labour Act and stop the exit of companies that leave thousands of workers without employment or compensation.

“The creation of a mandatory compensation fund is being proposed, which should be established in collective contracts and guarantee the payment of benefits in the face of unexpected closures, shielding workers from bankruptcy or abrupt exits,” the document says.

The initiative arises after a growing labor crisis, evidenced by cases such as the collapse of First Brands Group in Ciudad Juarez, where hundreds of employees were left without settlement.

In parallel, more than 17 makeup artists have recently closed, impacting nearly 9,000 workers, while the city accumulates 65,000 job loss since 2023.

In addition, the reform contemplates criminal penalties in cases of fraud, simulation or transfer of assets to avoid labor responsibilities, giving intervention to the Public Ministry.