Mexico’s Labor Law

There are two categories that govern Mexico’s labor law – Federal Labor Law and Social Security Law. The labor law defines the rules and regulations pertaining to labor courts, labor unions, and labor relations. It also enlists the total wages for specific and general work that may vary according to the economic region. The labor law of Mexico provides sufficient protection to employees.  Here, we will review some of the essential policies in Mexico’s labor law.

Work Day and Week

Employees are entitled to one full day of rest (Sunday) while the other days of the week (Monday through Saturday) are considered working days. Employees are required to work no more than 48 hours per week, although some companies may set the limit to 40 or 45 hours per week.

Work Shifts

There are three work shifts. They include a day shift (8 hours), night shift (7 hours), and a mixed shift, which is a part-day and part-night shift (7 1/2 hours).

Over Time

The hourly wage can be doubled or tripled, depending on the number of hours exceeding the time limit. Excess hours worked are paid at triple the normal rate.

Salary

The law mandates a minimum daily wage for each of the categories of services. The law also dictates an annual review of salary disbursement and increments.

Work-Related Risks

The employer is required to register employees with the Mexican Institute of Social Security, which is responsible for medical and other healthcare for employees.

Holidays

Apart from the official holidays, employees have the right to paid annual leave, which should not be fewer than 6 working days. The number of annual leave days increases for every year the employee continues to work.

Unlawful Dismissal

An employer does not have the right to unlawfully dismiss an employee. However, in the event of getting fired without a reasonable cause, the employer should pay the employee three months of salary prior to employment termination.

Labor Contracts

In Mexico, there are two types of contracts. One is a collective contract, which is the same for everyone and is negotiated between the labor union and the employer. The other one is individual contracts, where the individual negotiates the terms and conditions of the contract with the employer.

Retirement

Employers are required to deposit a sum equivalent to 2% of the employee’s salary into his account as part of retirement savings.

Labor Unions

Labor unions are recognized under federal law and are made to protect the common interests of the workforce. Any decisions made by the labor unions are discussed with the employer. However, the employer is the sole decision-maker for any decisions.

Conclusion

The labor law of Mexico is designed to protect and safeguard the rights and interests of the employees as well as those of employers. It includes laws against discrimination and harassment that are also applicable to women. Click here to learn more about labor laws and regulations in Mexico.

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