Mexico
Fixed term contracts are allowed for temporary or seasonal work. Training contracts are permitted for up to 3 months.
Employment relationships for an indefinite term or any other term (except for initial training) exceeding 180 days can be subject to a probation period which, generally, should not exceed 30 days. However, a probation period of up to 180 days can be agreed for the same three scenarios described above (managerial/direction positions, administrative/direction positions of a general nature, or specialized technical or professional activities).
Mexico currently recognizes 7 paid public holidays. Workers who work on a holiday are entitled to double-pay.
After one year of service, Workers are entitled to paid vacation as follows: After 1 year: 12 days After 2 years: 14 days After 3 years: 16 days After 4 years: 18 days After 5 years: 20 days From the sixth (6) year on, the vacation entitlement will increase by two days every five years. In addition to regular salary and benefits, Workers are entitled to a vacation premium during the vacation period equal to 25% of the Worker’s base salary.
Workers are entitled to 52 weeks of paid sick leave when certified by the Instituto Mexicano del Seguro Social (“IMSS”). During that period, employers are only liable for the retirement portion of social security contributions. If the Worker remains incapacitated at the end of that period, the contributions cease and the employment relationship terminates.
Standard working hours are typically 8 hours per day, 6 days per week (Monday through Saturday). Workers must be provided with a rest period of at least 1/2 hour during their work shift.Normal working hours are 8 hours per day, 6 days per week, Monday - Saturday.
Workers are entitled to 2x of their ordinary rate for overtime work in excess of 3 hours per day not exceeding 9 hours per week. After 9 hours of overtime, Workers are entitled to 3x of their ordinary rate.
At the end of the year, each December, Workers will receive a payment equal to 15 days of their normal wage as a Christmas bonus.
Notice is not required to terminate a Worker in Mexico unless notice has been agreed to between the Worker and the company. However, just cause is required and must be communicated to the Worker and/or the Labour Board or the termination will be deemed unjustified. A Worker terminated without just cause may be entitled to reinstatement or severance. The parties may terminate the employment contract by mutual agreement, generally with some form of compensation to the Worker.
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