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Labor Laws

Labor Laws, Juarez, MX

Mexican labor laws are extremely detailed and lengthy. A qualified Mexican attorney can outline these laws specifically. Following is a brief description of some of the laws.

  • Mexican federal government establishes the daily minimum wage as well as certain employer-paid fringe benefits and adjusts it annually.
  • The legal working week is 48 hours. Workers will receive the seventh day off with pay at the same rate as a working day. (Most Maquiladoras in Juarez work 42 - 45 hours per week.)
  • Seven working days paid vacation are allowed for the first year of service, and 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 wage plus 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 on year of service will be paid a bonus proportional to time worked. Social Security in Mexico covers medical care, hospitalization, surgery, as well as old age and unemployment compensation. The rates depend on the labor or work classification. The employer is required to pay two percent of the payroll as a tax to support education. Mexico 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 that 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 five 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. Semi-skilled employees such as welders, machine operators, etc., are paid between 30 percent and 60 percent above minimum wage, however, the benefit percentages are the same.

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