The basic features of Labor Law in Mexico
Compared to Europe, labor law in Mexico has numerous fundamental differences. So, what’s it like in Mexico? We provide you with a summary of the basic features of labor law in Mexico to make sure you are well informed.
Working hours in Mexico
Weekly working hours in Mexico may not exceed 48 hours for day time work, and no more than 42 hours for night time work. This can be managed with some flexibility in favor of the employee. Employees are allowed to accumulate the overtime working minutes up to 9 hours per week, which get paid double.
Termination of employment in Mexico
A major difference to labor law in Germany, Austria, and Switzerland is that Mexico does not consider notice periods, neither from the employer nor the employee. However, the reasons that lead to the termination of employment by the employer are important: they can be behavioral, personal, or operational.
Continued payment of wages in case of incapacity for work
An employee has a direct claim to continued payment of wages in case of becoming incapable for work, only if it is the result of an accident at work. In this case, the employee’s claim begins on the first day of incapacity for work.
Maternity leave in Mexico
Maternity leave, as dictated by law, is six weeks before and six weeks after childbirth at full pay. If the employee was covered by social insurance for more than 30 weeks within one year, the social insurance company will pay the wages.
Minimum wages
The minimum wage differs from region to region. Read more about this topic in our blog „Miminum wages“.
Emloyee profit sharing – Participación de los Trabajadores en las Utilidades (PTU)
In Mexico, 10 percent of a company’s taxable profits are distributed to employees each year in the form of employee profit sharing. Every employee is entitled to it, with the exception of directors, board members, domestic workers, and casual workers.
Vacations
According to labor law, employees in Mexico are not entitled to vacations during their first year of employment. In the second year of fulltime employment, they are entitled to six days of vacation. In the following years, the entitlement increases by a fixed number of days in fixed periods.
Christmas bonus
Employees have a statutory entitlement to a minimum Christmas bonus of 15 daily salaries, payable until 20th December. For mid-level administrators and employees, a Christmas bonus of 20 to 30 daily salaries is common.
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