Employee rights in Mexico

Employee rights and protections in Mexico

Employment in Mexico is governed by comprehensive labor laws that secure various rights for employees. Employers must comply with these legal standards to maintain workplace fairness and avoid penalties.

Employment contracts

All employees must receive a written employment contract that aligns with Mexican labor regulations. Contracts must include key terms such as salary, position, and working conditions.

• Fixed-term contract: Used for work with a specified duration or to fill in for another employee temporarily
• Indefinite-term contract: No specific end date, generally used for ongoing roles and exceeding 180 days
• Trial period contract: Used to determine if a new hire meets role requirements; up to 30 days for most roles, up to 180 days for management or specialized positions
• Initial training contract: Grants employees time to acquire role-specific skills; lasts up to three months (six months for managerial roles)
• Seasonal contract: Applies to periodic or non-permanent activities, providing proportional rights aligned with time worked

The employment contract must specify identity information for both parties, employment type, workplace, duties, salary details, payment schedule, training plans, working hours, conditions, and beneficiary designations.

Wages and payment obligations

Employers are required to provide detailed pay slips to employees on a weekly or biweekly basis. Clarification of gross wages, overtime, bonuses, leave, and social security contributions is mandatory.

Upon request, employees can access detailed records regarding their pay and worked hours.

Working hours and right to disconnect

Employees in Mexico generally work up to 48 hours per week, depending on the employment agreement and sector.

• Employees have explicit rights to disconnect from work communications outside their established working hours
• Remote workers' schedules must define clear periods when the employer can contact them

Profit sharing

Employees are entitled to participate in their employer’s annual profits. The profit sharing rate is set at 10 percent of taxable company income, distributed within 60 days after the annual tax filing deadline.

• Key employees excluded: Directors, general managers, administrators, short-term temporary staff (less than 60 days), partners, shareholders, freelancers, and domestic workers

Employee protections

There are strict protections against workplace misconduct and discrimination:

• Protection against sexual and psychological harassment
• Significant fines for offenders and those tolerating harassment
• Prohibition of discrimination on grounds such as ethnicity, gender, age, disability, religion, social status, health, migratory status, marital status, opinions, or sexual orientation

Employers violating anti-harassment or anti-discrimination rules may face substantial penalties.

Data protection

Employers must protect and properly process employee personal information. An employee-focused privacy notice must be provided before the employment relationship starts.

• Data may include names, addresses, identification codes, health status, beliefs, or union membership
• Employers must obtain clear consent for handling sensitive personal data
• Improper data handling can result in considerable financial penalties for employers

Leave entitlements and benefits

Mexican labor law provides several key benefits regarding leave and pay:

• Sick pay: Employees receive 60 percent of their registered salary during certified illness
• Maternity leave: 100 percent salary, starting from the 34th week of pregnancy for the duration granted by medical certificate
• Nursing mothers: Two paid rest periods of 32 minutes each per day for the first six months after birth
• Vacation bonus: At least 25 percent of regular salary to support paid time off
• Christmas bonus: No later than December 20 each year, minimum of 15 days’ salary; proportionally adjusted if employed less than a year

Employers may not dismiss women due to pregnancy, marital status changes, or related family care responsibilities.

Termination and end of employment

Ending an employment relationship in Mexico must follow legal steps outlined in the contract and Mexican labor law. Justified and unjustified terminations carry different employer obligations regarding notice and severance pay.

FAQs

What must an employment contract in Mexico include?

An employment contract should specify identities and details for both parties, duration and type of employment, workplace, role, remuneration conditions, working hours, payment schedule, training provisions, and designation of benefits and beneficiaries in case of death.

Are employees in Mexico entitled to a profit share?

Yes, most employees have a right to receive a share of their employer’s annual profits. The standard rate is 10 percent of taxable income, and the payment must occur within 60 days after the company's annual tax declaration.

What protection exists against workplace harassment in Mexico?

Mexican law prohibits sexual and psychological harassment at work. Employers and individuals may face steep fines for committing, permitting, or tolerating any form of harassment or discriminatory behavior in the workplace.

What are the main statutory leave entitlements in Mexico?

Statutory benefits include paid sick leave, maternity protection with full salary during certified leave, vacation bonus, and an annual Christmas bonus. Women also receive special nursing breaks post-birth as part of maternity protections.

What is the right to disconnect in Mexico?

Employees have the right to disconnect from all work-related communications outside their contracted working hours. Employers must respect this right and cannot require employees to respond during off-hours, reinforcing work-life balance.