Labor Laws
Mexican labor laws are extremely detailed and lengthy. REDCo 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)
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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
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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
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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
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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
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Semiskilled employees, such as welders, machine operators, etc., are paid between 30 percent and 60 percent above minimum wage
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The benefit percentages are the same
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The benefit percentages are the same
