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Mexico:
Court Precedent Alert In Rout To Paperless Relations In The Workplace
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In a decision by the Supreme Court resolving two conflicting
criteria by lower federal courts, published September
4th 2020, it was confirmed that wage payment stubs or
receipts that contain the digital certification granted by the
Internal Revenue Service ( Servicio de Administración
Tributaria, or SAT for its Spanish acronym) need not be hand
signed by employees to serve as evidence of payment for wages and
or any labor benefit paid by employer.
This decision comes as confirmation of the Federal Labor Law,
that included in its reformed article 101, the validity of the
digital certification of paystubs as legal proof of wage payments,
in leu of printed and singed receipts by the
employee.
While we are still strong advocates for the physical execution
of key documents such as the employment contract, we welcome any
measure to reduce unnecessary use of paper, storage space and work
time interruption.
As per Mexican tax laws, the digital certificate is a measure
that grants both the employer and the employee certainty in the
transaction, as it also serves to simultaneously integrate the
electronic file that the SAT keeps for both parties and keeps track
of payments and income that compose each party´s yearly tax
filings and returns.
Through this decision, Mexico´s supreme court supports a
paperless environment in a tendency to have printed receipts become
the exception rather than the norm. For companies that have
employee headcounts above 100, it will also prove to be an
administrative relief by not having to keep years of storage and
perhaps personnel dedicated to overseeing execution of receipts by
employees.
For further detail on the Court´s resolution or for any
labor and employment need your company should have, do not hesitate
to contact one of our offices.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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