Mexico

Labor Compliance Guide

Labor Requirements

Mexican‌ ‌labor‌  requirements are mainly governed by ‌the‌ ‌Ley‌ ‌Federal‌ ‌de‌ ‌Trabajo‌ ‌or‌ ‌Federal‌ ‌Labor‌ ‌Law, the Mexican Constitution and the Social Security Law.‌ ‌

Hours & Pay Regulations

Normal Working Hours

Work‌ ‌‌shift‌‌ ‌is‌ ‌the‌ ‌time‌ ‌during‌ ‌which‌ ‌the‌ ‌worker‌ ‌is‌ ‌at‌ ‌the‌ ‌disposal‌ ‌of‌ ‌the‌ ‌employer‌ ‌to‌ ‌loan‌ ‌his‌ ‌work.‌ The maximum workweek is 48 hours. The workweek comprises 6 working days.

 

The FLL provides that employers may utilize the following types of work schedules with its employee:

  • The day shift, which begins at 06:00 hours and ends at 20:00 hours, with a maximum duration of 8 hours per day or 48 hours per week;
  • The night shift, which begins at 20:00 hours on one day and ends at 06:00 hours on the following day, with a maximum duration of 7 hours per day or 42 hours per week; and
  • The mixed shift, which consists of periods of time of the day work shift and of the night work shift, so long as the night period is less than 3 ½  hours, and if such time is exceeded, the shift shall be considered a night shift, and its duration shall be 7 ½ hours per day or 45 hours per week.

The maximum duration of the day will be eight hours during the day, seven hours at night, and seven hours and a half during the mixed shift . Article 59-62 of the Federal Labor Law.

Overtime

Work shifts may be extended due to extraordinary circumstances, but may not exceed 3 hours per day, nor 3 times a week, for a maximum of 9 hours per week.

 

Pay

Overtime is permitted for a period of three hours per day without exceeding 9 hours per week, and with a compensation of 100% over the regular hourly pay. If overtime exceeds 9 hours, compensation is 200% over the regular hourly pay. There are two conditions to determine if overtime hours are considered double or triple paid hours:

      • The total amount of overtime hours worked during the workweek.
      • The total amount of hours worked during a single day after a regular shift.

Article 66 of the Federal Labor Law

Section XI of Article 123 of the Mexican Constitution

Night Work

The night shift, which begins at 20:00 hours on one day and ends at 06:00 hours on the following day, with a maximum duration of 7 hours per day and 42 hours per week. Article 60 of the Federal Labor Law.

Breaks

During a continuous working day, the employee must be given a rest or meal period of at least 30 minutes. 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.

 

The daily rest period at the end of the workday is not clearly established in the Federal Labor Law.

 

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 her work shift by an hour. Article 63 &170  of the Federal Labor Law.

Work On Rest Days

Employees are entitled to 1 paid day of rest for every 6 days of work in addition to the required 7 paid holidays. It will be ensured that the weekly rest day is Sunday. The number of hours attached to each shift is spread over a 6-day work week that runs from Monday until Saturday.

 

This seventh day can fall on any day of the week, however, employees whose regularly scheduled work shift falls on a Sunday must be paid a premium of 25% above what they are paid on other days. 

 

Employees are not obliged to provide services on their days off. If this provision is violated, the employer will pay the employee, regardless of the salary that corresponds to him for the rest, a double salary for the service rendered. Article 69-72 of the Federal Labor Law.

Sunday Work

This seventh day can fall on any day of the week, however, employees whose regularly scheduled work shift falls on a Sunday must be paid a premium of 25% above what they are paid on other days, this is known as the Sunday Premium or ‘Prima Dominical.’

 

Workers required to work on the Sunday, holiday, or any other rest day are entitled to double pay.

 

If such rest day falls on a Sunday, the worker is entitled to double pay plus the 25% premium. Article 69-72 of the Federal Labor Law.

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).

  • January 1st – New Year
  • February 5th – Constitution Day (Moved to the first Monday of February)
  • March 21st – Benito Juarez Day/President’s Day (Moved to the third Monday of March)
  • May 1st – Labor Day
  • September 16th – Independence Day
  • November 20th – Revolution Day (Moved to the third Monday of November)
  • December 25th – Christmas Day
  • Holy Thursday and Good Friday are not federal holidays, but it is common for a lot of employers to give Friday or both off.

Employees who are required to work on a mandatory holiday are entitled to double pay in addition to their regular pay. If the holiday coincides with the weekly rest day, for eg: Sunday, the employee must pay the employee the Sunday premium in addition to the holiday premium of double time. Article 74 of the Federal Labor Law.

Annual Leave

Workers are entitled to 6 working days after being employed for one year, For the next 3 years, the vacation period is increased by 2 days for each year of service, so that when an employee completes the 4 years of service, the duration of the annual vacation is 12 calendar days. As of the fifth year, the employee is entitled to 14 days vacation. After the fourth year, the vacation period will increase by two days for every five years of service.

 

Vacation must be granted to employees within six months following the completion of the 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 of work in the year.

 

Employees must receive, for vacation days, his daily salary plus an extra 25% as premium. Article 76-79 of the Federal Labor Law. 

Minimum Wage

As of January 1, 2020, the current minimum wage rate per day 123.22 pesos

 

Bonus Pay: Employees will be entitled to an annual bonus to be paid in December, equivalent to a specific percentage of a worker’s salary. This end-of-year bonus, or “aguinaldo,” is also known as “13th-month pay” and is disbursed before Christmas on December 20th. The bonus is equivalent to fifteen days of salary, at least.

Meal Breaks

Mexican Federal Labor Law establishes that during a continuous working of 8 hours per day, the employee must be given a rest or meal period of at least 30 minutes.

Special Leave

Maternity Leave

Maternity leave will be 12 weeks (6 weeks before the child is born and 6 weeks after birth). Working mothers may request the employer transfer up to 4 weeks of pregnancy leave in order to enjoy them after childbirth via agreement.

 

In case the children were born with any type of disability or require care in a hospital, the rest may be up to 8 weeks after delivery, prior presentation of the corresponding medical certificate. When an employee returns from maternity leave, the employee is entitled to her employment, provided that no more than 1 year has passed since the date of delivery.

 

Pay – During maternity leave, the Mexican Social Security Institute will pay the working mother 100 % of her daily salary as a social security contribution. If the maternity leave period is extended, she is entitled to 50% of the daily salary of social security contribution for a period of up to 60 days. Article 164-172 of the Federal Labor Law.

Adoption Leave

Following the adoption of a minor child, working mothers have the right to paid maternity leave for 6 weeks after receiving the child. Article 170 of the Federal Labor Law.

Paternity Leave

Male employees are entitled to enjoy a paid paternity leave of 5 days when the child is born or in case of adoption, as of the placement of the child. Article 164-172 of the Federal Labor Law.

Sick Leave

Employees unable to work because of a non-work-related injury or illness and who have made payments into the social security system for the 4 weeks before the condition developed are eligible for paid sick leave through the Social Security Institute. The benefit, which is 60 percent of an employee’s regular wage, is paid from the fourth day of the illness for up to 52 weeks and maybe extended for another 52 weeks. Social Security Law, 1995, arts. 58, 91-92, 98

Care Leave for Parents with Child with Cancer

On June 4, 2019, in the Official Gazette of the Federation, the Mexican Department of Labor and Social Welfare (STPS) published a decree amending the Social Security Law, the Law of the Institute of  State Workers ‘ Security and Social Services, and the Federal Labor Law.

 

The Decree enters into force on June 5, 2019, and reviews each of these laws to allow parents to take time off the job to care for kids under the age of 16 diagnosed with cancer.

 

The care leave certificate awarded by the IMSS is applicable for up to 28 days to the insured dad or wife. 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:

      • 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.

Article 37 Bis was also added to the Law of the Institute of Security and Social Services of State Workers to effectuate this leave.

 

Federal Labor Law

Furthermore, a fresh Section IX has been introduced to Article 42 of the Federal Labor Law in order to recognize care leave as a cause of temporary suspension of the employment relationship and payment of salaries without accountability for the employee and employer.

 

Finally, the Federal Labor Law requires employers to grant workers care leaves as provided for in Article 140 Bis of the Law on Social Security. Federal law now specifically acknowledges the right of minors ‘ parents diagnosed with any sort of cancer to enjoy the appropriate care leave.

Disability Leave

Occupational Injuries: defined as an accident or disease to which the employees are exposed in the course of their employment, or any consequences thereof;

 

Industrial Accident: defined as any organic injury, functional disturbance (whether immediate or subsequent) or death, occurring suddenly in the course of the employment or as a result thereof (i.e., the place where or the time when the accident occurs is related to the employment); or 

 

Occupational Diseases: defined as any pathological condition arising out of the continued action of a cause that has its origin or motive in the employment or in the environment in which the employee is obliged to render his services. The consequences of any of the injuries described above, and the term they may last, according to the SSL, are as follows: 

      • Temporary disability – 52 weeks (which may be extended to an additional period of 52 weeks).
      • Permanent partial disability – Permanent leave. Payment is through the IMSS according to the amounts established in FLL.
      • Permanent total disability-  Permanent leave. Payment is through the IMSS according to the amounts established in FLL.

The economic benefits paid by the IMSS due to illness are based on 60% of the employee’s registered salary, and they are paid as of the fourth day of absence.

Last updated on: September 4th, 2020