Mexican Labor Law: A Comprehensive Guide
Mexican Labor Law
General Provisions
Article 123 of the Mexican Constitution establishes the right to work and outlines the fundamental principles of labor relations. This law is applicable to individuals who provide personal services for remuneration.
Key features of Mexican labor law include:
- General and compulsory application
- Emphasis on social interest and public policy
- Protection of workers’ rights
Formation of a Union: A minimum of 20 active workers is required to form a union.
Provisions Outside the Law: Any provision that contradicts the labor law is considered null and void.
General Provisions of Work
Right to Work: Everyone has the right to work and contribute to social development.
Prohibition of Discrimination: Discrimination in hiring based on sex, social class, religion, or other factors is prohibited.
Other General Provisions
- International treaties are considered part of the legal framework.
- Labor laws are interpreted in favor of the employee.
- Labor relations are not subject to taxation.
Definitions
Employee: An individual who provides physical or intellectual work to another person in a subordinate capacity.
Worker in a Position of Trust: Employees who hold management, inspection, monitoring, or control functions of a general nature or related to personal work patterns within the company.
Employer: A person or entity that utilizes the services of one or more workers.
Broker: A person who contracts or recruits individuals to provide services to an employer.
Company: An agency or branch where a company provides or sells its services.
Employment Relationships
Individual Labor Relations
The employment relationship arises from an agreement to provide subordinate personal work in exchange for a salary. The employment contract should include:
- Name, nationality, age, sex, marital status, and address of both the employee and employer.
- Type of employment (work or time, definite or indefinite).
- Services to be provided.
- Workplace.
- Duration of the workday.
- Form and amount of wages.
- Date and place of wage payment.
- Other working conditions.
Working Abroad
When an employee works abroad, the employment contract should address expenses, bail, and other relevant conditions.
Termination of Employment Relationships
Causes for termination of employment relationships include:
- Mutual consent.
- Death of the worker.
- Completion of the work.
- Mental or physical disabilities that prevent the employee from performing their duties.
Wages and Benefits
Convention
A convention is an agreement between the employer and employee that specifies the benefits provided to the worker.
Salary
Salary is the remuneration paid by the employer to the employee for their work.
Minimum Wage
Minimum wage is the lowest amount an employee can receive in cash for services rendered in a working day. The minimum wage in Yucatan is 54.47 pesos and varies by geographic zone and profession.
Working Time
Working time is the period during which the worker is available to the employer to perform their duties.
- Daytime: 6:00 AM to 8:00 PM (8 hours)
- Nighttime: 8:00 PM to 6:00 AM (7 hours)
- Mixed Day: 7.5 hours, covering periods of both day and night, with nighttime being less than 3.5 hours.
Holidays
Employees are entitled to paid holidays based on their length of service:
- 1 year: 6 days
- 2 years: 8 days
- 3 years: 10 days
- 4 years: 12 days
- 5-9 years: 14 days
- 10-14 years: 16 days
- 15-19 years: 18 days
- Less than one year: 0.5 days per month worked
Vacation Pay (Prima Vacacional)
Vacation pay is calculated as the total vacation days earned divided by 4, multiplied by the daily wage.
Christmas Bonus (Aguinaldo)
Employees are entitled to a Christmas bonus equivalent to 15 days’ salary for a full year of work. For less than a year, the bonus is calculated as 1.25 days’ salary per month worked.
Profit Sharing (Utilidades)
Profit sharing is based on the company’s profits, as reported in the tax returns. 50% of the profit-sharing pool is distributed based on the time worked, and the other 50% is distributed based on wages.
Certain entities are exempt from profit sharing, including:
- Start-ups during their first year of operation.
- Start-ups developing new products during their first two years of operation.
- Non-profit private welfare institutions.
Legal Actions Related to Work
Possible legal actions related to work include:
- Voluntary Retirement: Employees may choose to retire voluntarily and are entitled to benefits such as holidays, vacation pay, and bonuses.
- Unjustified Dismissal: Employees who are unjustly dismissed may be entitled to constitutional indemnity (90% of back pay), 12 days’ salary per year of service, and at least two months’ salary.
- Employer Recession: Employees affected by employer recession may be entitled to seniority premiums.
- Disability Due to Work: Employees who suffer a disability due to work may be entitled to constitutional indemnity (20 days’ salary per year of service) and seniority premiums.
Women’s Work
Women enjoy equal rights and obligations as men in the workplace. They are entitled to special protection during pregnancy and breastfeeding, including:
- Prohibition of work that endangers their health or the health of their child.
- Prohibition of unhealthy or hazardous industrial night work.
- Prohibition of work in commercial or service establishments after 10:00 PM.
- Prohibition of overtime work.
- Maternity leave of 6 weeks before and 6 weeks after birth.
- Two 30-minute breastfeeding breaks per day.
Child Labor
Individuals over 14 and under 16 years of age must obtain a medical certificate attesting to their capacity for work and undergo regular medical examinations. Employers cannot hire minors without this certificate.
Prohibition of Child Labor
Article 175 prohibits the employment of children under 16 in various activities, including:
- Sale of alcoholic beverages.
- Work that may affect their morals or decency.
- Itinerant work (unless authorized by the Labor Inspectorate).
- Underground or underwater work.
- Dangerous or unhealthy work.
- Work beyond their physical capacity.
- Work in non-industrial establishments after 10:00 PM.
Children under 18 are prohibited from industrial night work.
Working Hours and Rest Periods
The workday for minors under 16 cannot exceed 6 hours and must be divided into a maximum of three periods, with at least one hour of rest between periods.
Overtime and work on Sundays and mandatory rest days are prohibited for minors under 16. Violations of this prohibition result in payment of 100% of the daily wage for overtime and double the daily wage for work on Sundays and mandatory rest days.
Vacation
All children under 16 are entitled to at least 18 days of paid annual vacation.
Employer Obligations
Employers who hire minors under 16 are required to:
- Demand medical certificates proving fitness for work.
- Maintain a special registry with the minor’s date of birth, type of work, hours, wages, and other working conditions.
- Distribute work to allow time for school attendance.
- Provide training and instruction according to the law.
- Provide reports to labor authorities upon request.