LEGAL
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Employment Law and Practice A
short time ago we had written an article about labor law. Because of the
type of domestic help we hire, most of us do this “under the table”, really
not adhering to Mexican Law. We then suggested how to handle these “under
the table” employment issues. We have since had a number of inquiries on
the actual labor law, and would like to now provide this information. First
of all, the Federal Labor Act regulates employment and labor in Mexico,
and sometimes it gives more benefits to the workers than to the employer,
but if you pay attention and follow the Mexican rules, you may also get
the benefits that the law gives you or your company. In Mexico, the presumption
is that an employee has been hired permanently after the first three months
that he or she has been working for you. It is necessary to have a written
contract specifying the temporal character of the working relationship and
the lasting period of the employment. In this period of time, you may have
a clear idea if the employee is the appropriate person to develop such work;
if he doesn’t, you may finish the labor relationship (only if you have a
contract), and must be careful of not going over the 90 days because you
loose the right to do so. After
this time, you may fire the employee only by a justified cause, which is
defined by the law and includes: Not having proper behavior, theft, violent
acts, inappropriate language, consumption of alcohol or drugs, or by four
unexcused absences in a one month period. An employer’s work force must
be at least 90% Mexican, not counting management, officers and directors. Maximum
Labor Hours - The maximum labor hours that can be worked by an employee
on a normal schedule are 48 hours per week, with schedules of 8 hours during
the day. The night schedule is for only 7 hours and 7.5 if it’s mixed. Employees
must 18, or 16 years old with parent consent. Overtime
- Overtime is 3 hours per day for no more than 3 days per week and no more
than 9 hours per week. This overtime is paid double, and if the employee
works more than this time, he must be paid triple time. Statutory
Holidays - The Mexican law indicates that the employee should receive six
holidays per year, these being January 1st, March 21st,
May 1st, September 16th, November 20th,
and December 25th. December 1st every six years when
the new President of the Republic takes over. Vacations
- The minimum period for paid vacations is six days for every year of service
and should be increased two or more days for the following three years.
After being employed for three years a table is used to determine the days
for vacation. It is important to make the employees take the days for vacation
because according to the vacation law, vacations should not only be paid,
but also enjoyed. Wages
- The best recommendation is
to establish the salaries according to the average salaries in the area,
that way you will be able to find more people willing to work and provide
a better service. Employee’s
participation in the Company Profits - According to Mexican legislation,
the employer has the obligation to pay approximately 10% of the net income
of that year and should distribute that amount among all the employees.
Only during its first year of operations is a company exempt from this. Termination
and Severance - If you decide to fire an employee without reasonable cause,
and without having a temporary working contract, then you are obligated
by law to pay the employee 3 months salary plus 20 days for each year of
service to the company, the proportional Christmas bonus and vacation. Christmas
Bonus - The employer is obligated to pay the equivalent amount of 15 days
salary that the employee receives per year for the Christmas bonus concept.
In case of having seniority of less than a year, then the proportional amount
is paid. Adriana Perez Flores |