Industry-Wide Collective Contract Mexico (Contrato Ley)

An Industry-Wide Collective Contract Mexico (Contrato Ley) is a special form of sectoral collective agreement that, once declared applicable by the Secretaría del Trabajo y Previsión Social (STPS), establishes legally binding minimum working conditions for all employers and workers in an entire industry within a defined geographic region — regardless of whether those employers participated in the negotiation or whether their workers belong to any union. The Contrato Ley is governed by Articles 404 through 418 of the Ley Federal del Trabajo (LFT) and represents the highest tier of collective labour regulation in Mexico, above individual enterprise contratos colectivos de trabajo under Articles 386–403 LFT.

The constitutional basis for the Contrato Ley rests in Article 123, Apartado A, Fracción XXVII of the Constitución Política de los Estados Unidos Mexicanos, which recognizes sector-wide collective labour agreements as a mechanism for establishing industry-wide minimum working standards. The Contrato Ley institution was designed to prevent competitive wage-cutting within an industry — without sector-wide minimum conditions, employers competing on cost could undercut wage standards by hiring non-union workers at lower rates, undermining the effectiveness of enterprise-level collective bargaining.

Article 404 LFT defines the Contrato Ley as an agreement concluded between one or more unions of workers and several employers — or one or more employer associations — covering a specific industry within one or more Federal entities (estados) or throughout the national territory. Article 405 LFT establishes the conditions for the Contrato Ley to become binding on the entire industry: the agreement must be requested by the majority of workers (through their unions) and the majority of employers (directly or through employer associations) in the covered industry and region; upon receiving this joint request, the STPS declares the Contrato Ley applicable to the entire industry under Article 406 LFT.

Historically, Contratos Ley have been declared for specific Mexican industries including the textile industry (industria textil), garment manufacturing (confección), sugar cane production (azúcar y sus derivados), radio broadcasting (radiodifusión), and certain sectors of the chemical and pharmaceutical industries. Each Contrato Ley establishes a minimum wage schedule (tabulador) for all job categories in the covered industry, working hour provisions, mandatory benefits, safety requirements, training obligations, and procedures for dispute resolution — all of which automatically apply to every employer operating in the covered industry within the defined geographic area.

Article 408 LFT establishes that once a Contrato Ley is declared, it constitutes the minimum labour standard for the covered industry — no employer within the industry may offer conditions less favourable to workers than those established in the Contrato Ley, and individual enterprise CCTs negotiated within the sector must meet or exceed the Contrato Ley minimum conditions under Article 396 LFT's extension principle.

Article 412 LFT provides for the duration of the Contrato Ley — it remains in effect for one or two years and must be revised through collective negotiation in advance of expiry. Article 413 LFT governs wage revision during the Contrato Ley period, which follows the same annual revision process as enterprise-level CCTs under Article 394 LFT. The STPS administers the Contrato Ley system and plays a central role in convening the parties, overseeing negotiations, and issuing the declaration of applicability under Article 406 LFT.

Following the 2019 reforma laboral (Decreto published in the DOF on 1 May 2019), the Centro Federal de Conciliación y Registro Laboral (CFCRL) assumed the role of the former Juntas de Conciliación y Arbitraje in registering unions party to Contratos Ley and depositing the agreed texts. The legitimacy vote requirement under Article 390 Bis LFT applies to Contratos Ley as well — workers covered by sector agreements must ratify the agreement by majority secret ballot before the STPS declares it applicable.

The present template documents the adherence (adhesión) of an individual enterprise to an existing Contrato Ley, or serves as the framework for drafting the enterprise's section of a sector-wide negotiation coordinated by employer associations and recognized industrial unions under the STPS process.

An Industry-Wide Collective Contract Mexico (Contrato Ley) is needed in several distinct circumstances, each governed by the specific procedural requirements of Ley Federal del Trabajo arts. 404–418 and the STPS regulatory framework.

An employer operating in a declared Contrato Ley industry — including textiles, garment manufacturing (confección), sugar production, or radio broadcasting — must comply with the applicable Contrato Ley from the moment it begins operations in the covered geographic region, whether or not it was a party to the original negotiation. Article 408 LFT makes the Contrato Ley automatically binding on all employers in the covered industry within the declared geographic scope. The written adherence document (convenio de adhesión) formalized under this template allows such employers to confirm compliance and document the specific terms applicable to their workforce.

The document is needed when employer associations and industrial unions in a sector wish to initiate the process for declaring a new Contrato Ley under Articles 404–406 LFT — the initial negotiated text of the agreement must be drafted and submitted to the STPS along with the joint request (solicitud conjunta) from majority unions and majority employers requesting the STPS declaration of applicability.

A Contrato Ley revision is needed at the expiry of each one- or two-year term under Article 412 LFT, and for annual wage revisions under Article 413 LFT. The revisions are negotiated through multi-party processes coordinated by the STPS, with employer associations and union federations representing the parties across the industry. Individual employers in the covered industry must comply with each revised Contrato Ley from its declared effective date.

The document is needed when a new enterprise enters an industry covered by an existing Contrato Ley through greenfield investment, acquisition, or expansion. The new employer must immediately review the applicable Contrato Ley terms, adjust its wage scales and working conditions accordingly, and register with any joint administration bodies (comisiones mixtas) established under the Contrato Ley for training, safety, and dispute resolution.

In any sector where the STPS has declared a Contrato Ley, individual enterprise CCTs negotiated under Articles 386–403 LFT must set conditions at or above the Contrato Ley minimums. Where an enterprise CCT falls below Contrato Ley standards, the affected workers are entitled to the Contrato Ley minimums by operation of Article 408 LFT and Article 5 LFT (which declares null and void any contractual provision providing less than legal minimums), and the employer faces STPS sanctions and Tribunal Laboral liability for the shortfall in benefits paid.

The Centro Federal de Conciliación y Registro Laboral (CFCRL) must be notified of any modifications to a Contrato Ley agreed during the term — whether relating to wages, benefits, or working conditions — for the modification to have legal effect across the covered industry.

An Industry-Wide Collective Contract Mexico (Contrato Ley) under Ley Federal del Trabajo arts. 404–418 must contain the following essential elements, as specified in Article 411 LFT and the STPS procedural regulations for Contrato Ley declarations.

Identification of the Industry and Geographic Scope: The precise name of the industry covered (e.g., industria textil de la confección, industria azucarera, radiodifusión) and the specific Federal entities (estados) or national territory within which the Contrato Ley applies. The geographic scope is critically important because a Contrato Ley applies only within the declared region — employers outside that region are not bound unless a separate declaration is made for their area under Article 406 LFT.

Identification of the Parties and Their Representative Capacity: The names and CFCRL registration numbers of all unions (sindicatos) party to the Contrato Ley negotiation, confirming that they represent the majority of organized workers in the industry within the declared region. The names of all employer associations (cámaras patronales, asociaciones de empleadores) and individual employers party to the negotiation, confirming that they represent the majority of employers in the covered industry. The STPS declaration (declaratoria de aplicación obligatoria) reference number and date under Article 406 LFT.

Duration and Revision Schedule: The effective dates of the Contrato Ley and its stated duration (one or two years under Article 412 LFT). The schedule for annual wage revision (revisión salarial) under Article 413 LFT and biennial general revision. The procedure and timeline for advance notice (emplazamiento) when either party wishes to revise the agreement.

Industry Wage Scale: A complete tabulador de salarios mínimos listing the minimum daily wages for every recognized job category (categoría de trabajo) within the industry, organized by skill level, seniority, and geographic zone as applicable. All wages must equal or exceed the CONASAMI general minimum ($278.80 MXN per day in 2025 general zone; $419.88 MXN per day in the Zona Libre de la Frontera Norte). The tabulador is attached as a mandatory annex to the Contrato Ley and constitutes the enforceable minimum wage floor for the industry.

Working Hours and Shift Provisions: The standard workday type for the industry (diurna, nocturna, mixta under Articles 60–61 LFT), maximum daily and weekly hours, provisions for shift work (trabajo por turnos) common in continuous-operation industries such as textiles and sugar production, and overtime authorization and payment rules under Article 66 LFT.

Mandatory Benefits and Industry-Specific Superior Benefits: All LFT-mandated benefits — aguinaldo (Article 87 LFT), vacation (Article 76 LFT as reformed 2022), prima vacacional (Article 80 LFT), PTU (Articles 117–131 LFT) — plus any superior benefits (prestaciones superiores) established for the specific industry through collective negotiation, such as production bonuses (bonos de producción), seniority premiums (primas de antigüedad) exceeding the Article 162 LFT minimum, shift premiums (primas de turno nocturno), food subsidies, or specialized medical coverage for industry-specific occupational risks.

Safety and Health Standards: Industry-specific occupational health and safety obligations, referencing applicable Normas Oficiales Mexicanas (NOMs) issued by the STPS, the composition and functions of the Comisión Mixta de Seguridad e Higiene required under Articles 509–510 LFT, and procedures for reporting and investigating occupational accidents under Article 343-I LFT for high-risk industries.

Training and Productivity: Obligations of employers and unions regarding capacitación y adiestramiento under Articles 153-A through 153-X LFT, including the joint training committee (Comisión Mixta de Capacitación y Adiestramiento) structure for the industry.

Grievance and Dispute Resolution: The internal grievance procedure within each enterprise for disputes arising under the Contrato Ley, and the referral mechanism to STPS mediation or CFCRL conciliation under Article 684-A LFT for unresolved disputes. Collective disputes affecting the entire industry (conflictos colectivos de naturaleza económica) are subject to the special procedure under Articles 900–919 LFT before the Tribunal Laboral.

STPS Declaration Reference: An express provision confirming that the Contrato Ley becomes obligatory throughout the covered industry upon the STPS declaration of applicability (declaratoria de aplicación obligatoria) under Article 406 LFT, and that the text was ratified by the majority legitimacy vote (voto de legitimación) required under Article 390 Bis LFT.

Forms-legal.com provides this Industry-Wide Collective Contract Mexico template as a reference document for enterprises operating in Contrato Ley sectors. Compliance with a Contrato Ley requires specialized knowledge of the applicable sector's specific terms — employers are advised to engage a licenciado en derecho specializing in derecho colectivo del trabajo and to consult the current Contrato Ley text published in the Diario Oficial de la Federación for their specific industry.