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Last updated on: October 15th, 2024
Labor Requirements
Mexican labor requirements are mainly governed by the Ley Federal de Trabajo (Federal Labor Law). The Act governs the terms and conditions of employment such as working hours, holidays and rest periods, wages, overtime, employment relationships. The other acts which govern employment relationships are the Mexican Constitution, the Social Security Law etc.
Hours & Pay Regulations
Normal Working Hours
Normal working day shall not exceed more than 8 hours a day (exclusive of overtime). The employee and the employer shall determine the duration of the working day (CBA), which may not exceed the above-mentioned legal limits.
Day Shift – Work performed between 6 am to 8 pm is considered day shift. An employee shall not work more than 8 hours (exclusive of overtime) in a day shift.
Night Shift – Work performed between 8pm to 6 am is considered night shift. An employee shall not work more than 7 hours (exclusive of overtime) in a night shift.
Mixed Shift – A mixed shift includes shift time from the day and night hours, provided that the night period is less than 3.5 hours. If the night hours reach 3.5 or more, it is classified as a night shift instead. An employee shall not work more than 7.5 hours (exclusive of overtime) in a mixed shift. Federal Labor Law, Article 59-62.
Recording Requirement
An employee shall maintain the following records for five years from the date of their joining with the organization which are as follow:
- name, nationality, age, sex, marital status, unique population registry code, registry federal taxpayer’s registry and domicile of theemployee and employer.
- the length of the working day of an employee
- days off, annual leave and other time-offs agreed upon by the employee and the employer
- payrolls and payrolls list which invariably records the number of days worked and the wages received by its employees
- if the employment relationship is for a specific job or time, for a season, for initial training or for an indefinite period and, where applicable, if it is subject to a trial period
- the service or services to be provided,
- the place or places where the work must be performed
- the form and amount of the salary
- the day and place of payment of the salary
- the indication that the employee will be trained or instructed in accordance with the plans and programs established or to be established in the company
Social Security Insurance Act, Article 15, Federal Labor Law, Article 25 .
Overtime
Any work performed beyond 8 hours per day shall be considered as overtime. An employee shall not work more than 3 hours a day OR 3 times a week, of overtime in any extraordinary circumstances.
Pay – An employee is entitled to receive a premium pay of 100% on their regular rate of pay for overtime worked.
Special Overtime – If overtime exceeds 9 hours in a week, an employee is entitled to receive a premium pay of at least 200% on their regular rate of pay for overtime worked. Federal Labor Law, Article 66 & Mexican Constitution Section XI of Article 123.
Night Work
Any work performed between 8 pm to 6 am is considered as night shift. An employee must work more than 3.5 hours during a night shift for it to be considered night work. Also, the employee shall not work more than 7 hours a day (exclusive of overtime). Federal Labor Law, Article 60.
Breaks
An employee is entitled to 30 minutes of unpaid rest or meal break during their continuous working day. If the employee cannot leave the workplace during the rest or meal period, the time corresponding to such periods is to be counted as time worked and included as part of the working day. Federal Labor Law Article 63 &170.
Weekly Rest – Employees are entitled to 1 paid day of rest for every 6 days of work in addition to the required 7 paid holidays, the weekly rest day is usually given on a Sunday.
The number of hours attached to each shift is spread over a 6-day work week that runs from Monday until Saturday.
Work On Rest Days
Weekly Holiday Pay – An employee who performs work on their weekly rest day is entitled to a premium pay of at least 200% [double the salary] on their regular pay in addition to their regular pay.
This only applies if the rest day is not replaced by another day of rest in the following week, that is, it only applies to people who worked and will work normally the following week. Article 69-72 of the Federal Labor Law.
Sunday Work
Employees who provide service on Sunday shall be entitled to an additional premium of at least 25% on their regular rate of pay. Federal Labor Law, Article 69-72.
Public Holidays
Mexico observes the following national holidays. National Holidays in Mexico fall into two categories. Mandatory Holidays (mandatory rest) and Usually granted Holidays (commonly granted)
- New Year- January 1
- Constitution Day ( first Monday of February) – (date varies)
- Benito Juarez Day/President’s Day (third Monday of March) – (date varies)
- Labor Day- May 1
- Independence Day – September 16
- Revolution Day ( third Monday of November) – (date varies)
- Every 6 years corresponding to the transmission of the Federal Executive Power – October 1
- Christmas Day – December 25
An employee who works on Public Holiday is entitled to receive a premium pay of 200% (double the salary) of their regular pay of rate. Federal Labor Law, Article 74.
Annual Leave
Duration of Annual Leave – Employees who have more than 1 year of service with the same employer will be entitled to paid annual leave which is not less than 12 working days.
The annual leave will increase by 2 days for each subsequent year of service, up to 20 working days of annual leave by the 5th year of service. Starting in the 6th year, the vacation period will increase by 2 working days for every 5 years of service.
Employees shall accrue annual leave in the following manner –
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- Year 1: 12 days of vacation.
- Year 2: 14 days of vacation.
- Year 3: 16 days of vacation.
- Year 4: 18 days of vacation.
- Year 5: 20 days of vacation
- Year 6 – 10: 22 days of vacation.
- Year 11-15: 24 days of vacation.
- Year 16 – 20: 26 days of vacation.
- Year 21 – 25: 28 days of vacation.
- Year 26 – 30: 30 days of vacation.
- Year 31 – 35: 32 days of vacation.
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Employees with discontinuous and seasonal services will have the right to an annual leave period in proportion to the number of days of work in the year.
Minimum Leave Entitlement -Employees are entitled to a minimum of 12 consecutive days of annual leave each year. They can choose how and when to take this leave based on their needs.
Granting of Annual Leave – Annual Leave must be granted to employees within 6 months following the completion of their service year. Employees who provide discontinuous and seasonal services will have the right to an annual vacation period, in proportion to the number of days worked.
Annual Leave Pay – Employees shall receive a premium of 25% on the regular rate of pay for annual leave. Annual leave must not be compensated for remuneration.
Termination of employment – If the employment relationship ends before the year of service is completed, the employee will have the right to remuneration proportionate to the length of services rendered. Federal Labor Law, Article 76-79.
Special Leave
Duration of Sick Leave: An employee is entitled to receive sickness benefit for up to 52 weeks.
Eligibility Criteria: An employee will be entitled to receive when they have more than 7 weeks of contributions to the Social Secuity Insurance before the onset of the illness. In the case of a temporary employee 6 weeks of contribution are required in the 4 months prior to the onset of the illness.
Sick Leave Pay: An employee is entitled to receive pay of 60% on their regular rate of pay by the Social Security Institute which is paid from the 4th day of the illness for up to 52 weeks and may be extended for another 52 weeks. Social Security Law, 1995, Articles 58, 91-92, 98.
Duration of Maternity Leave- An employee will be entitled to maternity leave for 12 weeks (6 weeks before the child is born and 6 weeks after birth).
If the newborn has some type of disability or needs to be hospitalized, the leave is extended by 2 more weeks. Working mothers can request, through an agreement with their employer, to transfer up to 4 weeks of pregnancy leave to be taken after childbirth.
Eligibility Criteria – An employee must be registered with Mexico Social Security Institute. The employee must have contributed to the IMSS for at least 30 weeks in the 12 months before the maternity leave starts. They must be certified as pregnant by the IMSS and receive a probable birth date. Also, they shall not perform any paid work during the maternity leave period
Pay – An employee will receive a pay from the Mexican Social Security Institute at 100 % of their regular rate of pay. If the maternity leave period is extended, she is entitled to receive pay at 50% of of their regular rate of pay up to 60 days.
Maternity Leave for Adoption: In case of adoption, the employees will have the right to obtain paid maternity leave for only for 6 weeks (i.e. postnatal) from the date the child joins their new family.
Notice Requirement- An employee must inform their employer about the pregnancy leave and obtain a medical certificate indicating the date of expected delivery.
Breastfeeding Break- the new mother is entitled to 2 additional 30 minutes rest periods per day to feed the child in an adequate and hygienic place set aside by the employer. If this is not possible, the parties may agree to reduce the employees’ work shift by an hour. Federal Labor Law, Article 164-172.
Duration of Leave– Male employees are entitled to enjoy a paid paternity leave of 5 working days when the child is born or in case of adoption as of the placement of the child.
Eligibility Criteria-An employee must be the biological or adoptive father of the child. Same-sex parents are also eligible.
Pay– An employee is entitled to full salary by their employer .
Extended Paternity Leave– Paternity leave can be extended in special circumstances, such as a serious illness of the child or the death of the mother. However, this extended leave would be unpaid. Federal Labor Law, Article 132.
A female employee who adopts a minor child, will be entitled to receive adoption leave as maternity leave of 6 weeks of paid adoption leave after receiving the child.
Eligibility Criteria– An employee must be registered with Mexico Social Security Institute for receiving adoption benefits .
Pay – An employee will receive a pay from the Mexican Social Security Institute at 100 % of their regular rate of pay. If the maternity leave period is extended, she is entitled to receive pay at 50% of their regular rate of pay up to 60 days.
Notice Requirement- An employee must inform their employer about the pregnancy leave and obtain a medical certificate indicating the date of expected delivery. Federal Labor Law, Article 170.
Employees shall be granted necessary time off to exercise their vote in popular elections, the processes of “revocation of mandate” and to carry out jury, electoral and census services, when these activities must be done within the employee’s working hours. Federal Labor Law, Article 132.
Parents who are insured under Social Security Insurance are entitled to care leave for their child. The care leave certificate awarded is applicable for up to 28 days to the insured father or mother. IMSS may issue as many certificates as necessary within three years, but the employee’s leave cannot exceed a total of 364 days.
Care leaves granted to the working parent shall cease in the following situations:
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- When the minor no longer requires hospitalization or medical rest during the critical periods of treatment;
- Due to the death of the minor;
- When the child turns 16 years old; or
- When the parent who receives the leave is hired by a new employer.
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Federal Labor Law, Article 173-174; Bis Social Security Law, Article 140.
An employee is entitled to temporary disability leave for 52 weeks (which may be extended to an additional period of 52 weeks).
Pay Benefits – An employee will be entitled to receive 60% of their regular rate of pay from the fourth day of absence. Federal Labor Law, Article 42, 43.
