Aims to promote job stability and protect workers' rights
Prescribes strict termination procedures and severance pay requirements
Requires employers to provide social security and health insurance benefits to employees
Employment Contract Requirements
Contract Types:
Fixed-term contracts (maximum 2 years)
Indefinite-term contracts
Contract Provisions:
Must include details on job duties, compensation, working hours, vacations, and benefits
Language and Currency:
Contracts must be in Spanish and denominated in Mexican pesos (MXN)
Working Hours Regulations
Standard Work Hours: 48 hours per week, 8 hours per day
Rest Days and Breaks: Minimum of 24 hours of rest per week, 30 minutes of rest per day
Vacation Policy
Annual Leave:
12 days per year, increasing by 2 days per year after 1 year of service
Public Holidays: 7
Special Leaves:
Sick leave: Paid through social security, up to 52 weeks
Maternity leave: 42 days before and 42 days after childbirth, paid at 100% of regular salary
Paternity leave: 5 working days
Employee Severance and Contract Termination
Notice Period: Not legally prescribed, but typically 30 days
Severance Pay:
Termination without cause: 3 months' salary, plus 20 days' salary for each year of service, and a seniority bonus of 12 days' salary for each year of service
Termination with cause: Severance allowance
Unfair Dismissal Protection: Employers must have just cause to terminate an employee, or they may be liable for severance pay
Tax Laws
Personal Income Tax:
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