Close of corporations according to the health regulations in the New Normality in Mexico

The Department of Economy, the Department of Health, the Department of Labor and Social Welfare, and the Mexican Institute of Social Security published a resolution providing for Specific Guidelines for the Reopening of Economic Activities. (DOF, MAY 29, 2020, evening edition)

Said resolution sets forth that: from June 1, corporations conducting essential activities shall file a self-assessment declaring that they have fulfilled a series of health measures established in those guidelines, while corporations that do not carry out essential activities may conduct such self-assessment in a voluntary manner. The fulfillment of these measures is independent from the security and hygiene measures that a corporation should regularly fulfill pursuant to Articles 147 and 148 of the General Health Law, as well as the provisions of the Federal Regulations of Security and Health at Work, and Mexican Official Standards NOM-030-STPS-2009 and NOM-019-STPS-2011.

Diverse corporations stated that they have been visited by diverse authorities, the federal and local Department of Health and the Department of Labor, and currently from the Federal Commission for the Protection against Health Risks (COFEPRIS).

What measures should be adopted in case of an inspection or verification visit?

No corporation is excluded from the possibility of being inspected or verified, and none one should refuse to allow such visit to take place (except for those established in dwellings). Inspections and verifications are proceedings that require accuracy from both the authorities and the ones being inspected. A poorly conducted visit may end up in the undue suspension of activities, and give rise to penalizing procedures that could result in penalties, and even closings.

Therefore, we recommend to appoint and train a person of the corporation to be in charge of dealing with this visit. Among other requirements, this person must have ample knowledge on:

• The essential requirements for a group of inspectors or auditors to access the premises and conduct an inspection;

• Understanding the scope of the visit in question, and processing requests from the authorities solely with respect to the subject-matter of the inspection;

• Making statements throughout the walk-throughs, but mainly at the conclusion of the pertinent report to assert his arguments on any probable violation identified by the inspectors.

When the inspection deals on the observance of irregular measures, such as those issued within the framework of an epidemic, we stress the advisability for the personnel of the corporation to be accompanied by experts who provide support in their training and, if applicable, during the inspection or verification visit.

What can I do if the authorities suspend the operations of my corporation due to an inspection or verification visit?

A corporation can make use of different mechanisms established by the law to prevent that the effects of an order to close or interrupt the business may have devastating consequences. However, we suggest that the corporations should consult with their experts the measures to be adopted, to prevent them from taking measures that could make worse the situation, and even open the door to criminal risks due to nonobservance of orders from authorities.