Labor Laws

Mexican labor laws are extremely detailed and lengthy. Borderplex Alliance can help you consult with a qualified Mexican attorney to outline these laws specifically. Following is a brief description of some of the laws:

  • The Mexican federal government establishes and adjusts the daily minimum wage and certain employer-paid fringe benefits
  • The legal working week is 48 hours
  • Workers receive the seventh day off with pay at the same rate as a working day (most maquiladoras in Juárez work 42–45 hours per week)
  • Seven working days' paid vacation are allowed for the first year of service
    • Two days are added every additional year for the next three years, allowing a total of 12 days’ paid vacation
    • Two additional days with pay are added every five years; the worker is given his daily wage plus a 25 percent vacation bonus
  • There are seven legal holidays per year
  • After one year of employment, an annual Christmas bonus equal to 15 days’ salary must be paid on or before December 20
    • Employees with less than one year of service will be paid a bonus proportional to time worked
  • Social security in México covers medical care, hospitalization, surgery, old age and unemployment compensation. Rates depend on the labor or work classification
  • The employer is required to pay 2 percent of the payroll as a tax to support education
  • México has a profit-sharing program whereby all employees participate in the profits of companies that have been in operation for more than one year
    • Profit sharing depends on the proportionate amount of capital investment and the size of payroll
  • The day shift is 48 hours per week, and the second shift is 45 hours per week
  • Overtime pay is at a rate of two times the regular rate and a worker cannot be required to work overtime for more than nine hours per week
  • Work performed on Sunday or holidays is at least 25 percent above usual salary
  • The revised 1970 Labor Law states that instead of providing housing for workers, a tax of 5 percent of payroll will be assessed so that the required housing will be built and made available by the government
  • Mexican labor laws do not require forming a union
    • Either individual or collective contracts may be made with the workers
    • Certain standard stipulations are required in an individual contract
    • Collective contracts are much the same as they are in the United States; they are bargained between labor and management and follow provisions set out by the labor laws
  • Semiskilled employees, such as welders, machine operators, etc., are paid between 30 percent and 60 percent above minimum wage
    • The benefit percentages are the same

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