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PrimeGlobal member firm Ortiz & Leos discusses the essential activities you and your business should perform during this time. 

On March 31, an AGREEMENT was published in the Mexico Official Gazette, establishing the extraordinary actions to deal with the health emergency caused by the SARS-CoV2 virus, through which the health authorities reported the suspension of non-essential activities from March 30 through April 30, 2020. 

Said agreement contains a list of activities and assumptions that the government has determined as “essential”, that is, that they can continue with their operations, as long as they comply with each and every one of the health recommendations that have been announced in recent days.

That said, it is possible that in the next few days inspections will be carried out by the government authorities to verify the suspension of non-essential activities and corroborate that those that continue their activities fall into one of the assumptions established in the reference agreement. It is worth mentioning that in the event of non-compliance, the authorities may issue administrative fines, which as of the date of issuance of this communication, the bases for their determination have not been published.

For the purposes of the foregoing, and in the event that your activity is classified as “essential”, we issue the following general recommendations in order to be able to justify the essential nature and thus have more elements to avoid possible fines:

Company´s documents: 
Bylaws 
Economic activity registered in the SCIAN 
Employer´s registry number before IMSS 
Risk classification before IMSS 
Updated Tax ID 
Number of workers 
Payroll 
Union Agreement 
Individual employees´ contracts

Essential activity supporting documents: 
Invoices 
Purchase orders 
Letterhead letters from clients (if in English, it should be translated in Spanish, by an expert authorized by the Superior Court of Justice)
Contracts and agreements (if in English, it should be translated in Spanish, by an expert authorized by the Superior Court of Justice)

Likewise, you must follow the safety and health protocols issued by the authorities, such as: 
1.5 meters distance between each worker 
Have antibacterial gel and employees must wash their hands regularly 
Suspend work activities to any person classified as vulnerable 
Do more than 50 people in the same place 
As well as the others issued by the health authorities

Content by:

Ortiz, Leos & Cia, S.C.

Ortiz, Leos y Cía, S.C., is strategically located in the northeastern part of Mexico, in a region well known as a manufacturing cluster. With over 30 years, our firm has broad experience in tax, legal, audit, due diligence, business process outsourcing and financial reporting. We have strongly geared our practice towards foreign investment, especially in the manufacturing and real estate industries. Among our clients, we work with American, Canadian, French, Korean, German, Chinese and other foreign investment companies. We have great level of experience in the foreign investment maquila industry.

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