Labour Law and Social Security - Unit II Diagram

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1. The Worker's Rights

1.1. Working Hours

1.1.1. Overtime Overtime hours of work shall be paid at twice the wage corresponding to the hours of the workday. Usually employees in Mexico are paid double for the first additional 9 hours.

1.1.2. Extended Time Endangerment of life for: Worker Fellow worker Employer The very existence of the enterprise Never more than 3 hours/day nor more than 3 time/week.

1.1.3. Work Shifts Day Shift 8 hours 6 am to 8 pm # of hours per spend on the job by Mexican day shift labor is 48 hours during the week. Night Shift 7 hours 8 pm to 6 am # of hours per spend on the job by Mexican day shift labor is 42 hours during the week. Mixed Shift 7.5 hours The night shift component of a mixed shifts is limited to 3.5 hours.

1.2. Rest Days

1.2.1. One rest day with full payment of wages.

1.2.2. Work needing continuous labor, the workers and the employer shall common agreement determine the days on which the workers may enjoy the weekly rest day.

1.2.3. Workers who provide services or additional bonus on Sunday shall be entitled to an equality of result of 25% of their wages on ordinary workdays.

1.2.4. When worker provides services to various employers on the same day or in the same week, he shall have the right to be paid the proportional part of his wages for days of rest, based upon the wages for the wage he would have received from each employer.

1.2.5. Workers shall not be obligated to work on days of rest.

1.3. Wages

1.3.1. Types Unit of time Unit of work Commission Lump sum In any other manner

1.3.2. Wages consist of payments made in cash at the daily rate, gratuities, receipts, housing, bonuses, commissions, benefits paid in kind, and any other amount or benefit paid in kind, and any other amount or benefit given to the worker for his work.

1.3.3. Wages must be remunerative and shall never be less than the amount fixed as the minimum in accordance with the provisions of the Federal Labor Law.

1.3.4. Equal wages must be paid for equal work carried out in the same position, workday and conditions of efficiency.

1.4. Vacations

1.4.1. Workers with >1 year of service enjoy annual paid vacations. Plus 6 working days Plus 2 working days/year (up to 12) 4th year ---- 2 working days per year

1.4.2. Seasonal workers have annual vacations in proportion to the number of days worked in the year.

1.4.3. At least 6 vacations days taken by workers may be continuous.

1.4.4. Remuneration may not be paid in lieu of vacations. Employment relationship terminates before 1 year -- remuneration proportionate to the time in which services were performed.

1.4.5. Workers shall be entitled to a bonus not less than 25% of the wages to be paid to them during vacation period.

1.4.6. Vacations must be allowed to a workers within the 6 months following the completion of each year of service.

1.5. Beneftis

1.5.1. Health Insurance Provided through IMSS, a government-mandated benefit. Social insurance contributions for health are partly paid by the employer and partly paid by the employee. In each payroll accounting period employers cover workers’ insurance for medical care.

1.5.2. Vacation Pay Stated by the federal government. After one year on the job, employees are entitled to six days of paid vacation. After the 1st year, employee receives an additional two days of paid days off until reaching a maximum of 12.

1.5.3. Training Companies have the obligation to provide workers with the raining that is necessary to carry out their assigned tasks Training of Mexican workers is a strong motivational incentive. Increases retention of quality employees.

1.5.4. Christman Bonus At least 15 days of a worker’s salary. Must be paid on an annual basis prior to Dec 20th. Laborers with less than one year -- proportional amount.

1.5.5. Coupons Food, medicine, transportation services. Some companies in certain competitive labor markets may choose to offer them to their workers.

1.5.6. Productivity Bonus Used for motivating employees through the use of productivity bonuses for meeting certain tasks and levels of production.

2. Statuory Days

2.1. Dates

2.1.1. Año Nuevo Jan 1

2.1.2. Dia de la Constitución Feb 5

2.1.3. Cumpleaños de Benito Juárez March 21

2.1.4. Semana de Pascua March/April

2.1.5. Dia del Trabajo May 1

2.1.6. Dia de la Independencia Sep 16

2.1.7. Dia de los Fieles Difuntos Nov 2

2.1.8. Dia de la Revolución Nov 20

2.1.9. Transmisión del Poder Ejecutivo Federal Dec 1

2.1.10. Dia de Navidad Dec 25

2.1.11. Special Notes When a statutory holiday falls on a Sunday, Monday is considered a statutory holiday. If a statutory holidays falls on Saturday, Friday will be considered a statutory holiday.