Labor Law

The Basics

Staff Report

 The Mexican Federal Labor Law (LFT) regulates employment relationships in Mexico regardless of nationality or place of entering into the employment agreement.

Profit sharing

    All employers must distribute among their employees an amount equal to 10 percent of the employer’s pre-tax profit within 60 days after the employer is required to file its year-end income tax return. Fifty percent of this amount is to be distributed in proportion to the number of days worked by each employee during the year, and the remainder according to the wages of each employee.

Christmas bonus

    All employers must pay their employees a year-end bonus equal to at least 15 day’s wage, payable before Dec. 20th of every year.

Paid days

            The law provides that seven legal paid holidays must be observed. An employee required to work on any of these holidays must be paid overtime at the rate of three times the normal wage. After one year of uninterrupted activity, workers...

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