Twelve worker benefits established by Mexican Labor Law

Before establishing a manufacturing facility, it is advisable to gain a knowledge of the benefits that are mandated by Mexican labor law prior to beginning operations.  Mexico’s Federal Labor Law has been in effect since 1970 and prescribes that twelve basic benefits be provided to a company’s workers.  They are the:

1. Aguinaldo payment (Christmas Bonus) – The aguinaldo is a benefit paid to workers at the end of each year. The payment is made prior to December 20^th.  It is paid to all workers, even those that have been employed for less than a year.  The aguinaldo is equal to fifteen day’s salary.
2. Vacation and Holiday Bonus – Workers that have been with a company for more than one year are entitled to six days of vacation and a premium in the amount of 25% under Mexican labor law. This is in addition to the ordinary salary that pertains to the vacation period. The second year, and for each subsequent year, the number of paid vacation days is increased by two.  This occurs until the number of paid vacation days under Mexican labor law reaches twelve.
3. Sunday Bonus – Should an individual work on a Sunday, he or she is entitled to a 25% premium on base salary. An individual that works on Sunday will have a day of rest on another day of the week in accord with the specifics of Mexican labor law.
4. Weekly Day of Rest – Under Mexican labor law, workers are entitled to one day of rest after every six days of service.  This seventh day is paid the amount that a worker receives for a regular day’s pay.  If a worker labors on his or her day of rest, he or she is paid double time.
5. Maternity leave – Pregnant working women have the right to six weeks leave time prior to and after the birth of a child. In the case of a child born with any type of disability, Mexican labor law provides for up to 8 weeks of post-natal rest.  For receipt of this benefit under Mexican labor law, the mother must provide the employer with a certificate that is proof of the newborn’s disability.
6. Adoption leave – Working women have the right to care for a newly adopted infant for a period of six weeks. This Mexican labor law granted benefit includes the payment of regular salary during this class of leave.
7. Breastfeeding break – In addition to regular company breaks, breastfeeding workers are entitled to two additional one-half hour breaks per day in order to feed an infant. In place of two one-half hour breaks, breastfeeding women can ask to have their workday reduced by one hour.
8. Paternity leave – Under Mexican labor law, male workers are entitled to five working days paid leave for the purpose of caring for their family after the birth of a child.
9. Seniority bonus – An additional payment in the amount of 12 days of salary is paid for each year of service. In the case of individuals that have not worked for a full year, Mexican labor law provides that the worker is paid for a proportional period of time worked.   The worker must also receive this bonus when he or she voluntarily resigns from a position or is dismissed by the company for just cause.  This is the case for workers that have 15 years or more of seniority with the employer.
10. Dismissal benefits – Under Mexican labor law, employers must pay workers any salary, aguinaldo, vacation payment or seniority bonus when the worker voluntarily severs the employment relationship.
11. Benefits for unjustified dismissal – Mexican labor law states that workers experience an unjustified dismissal must receive a constitutionally defined compensation that includes the payment of three months’ salary, plus twenty days of salary for every hear of service rendered. Mexican labor law also stipulates that all outstanding monies related to bonuses, vacation and holiday payments, seniority bonus, and profit sharing shall be paid.
12. Profit sharing – Under Mexican labor law, workers receive profit sharing based upon company earnings for the calendar year.