HSBC Doing business in Mexico

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Maximum working hours
The maximum number of
hours an employee is required
to work, without the need to
pay overtime, is 48 hours per
week. Employees may work in
three different shifts, i.e. the
day shift, the night shift and
the mixed shift. The number of
hours per day depends on the
work shift of each employee.
The maximum number of hours
in the day shift is eight, seven
hours for the night shift, and
seven and a half hours for
the mixed shift. The employee
must be allowed a break
of at least 30 minutes during
each shift.
Employees are entitled to at
least one day of rest per week.
In some cases, the normal
work hours may be distributed
throughout the week as
necessary. Most employees
distribute these over five
days in order to provide
an extra day off.
Overtime
In the event that the employees
are required to work more
hours than their regular shift,
the employer must pay the
first nine hours of overtime
(these hours are computed on
a weekly basis) at 200% of
the standard pay per hour, and
overtime exceeding those nine
hours must be paid at 300% of
standard pay per hour. Sunday
work is subject to a premium
equal to 25% of the wage,
regardless of any overtime
premium that may apply
whenever Sunday is part of the
regular working week. When
Sunday is not part of the regular
working week (day of rest),
it must be paid at 200% of
the standard pay per hour.
Year-end or Christmas bonus
Before 20 December of each
year, all employers must pay
their employees a year-end
bonus equal to at least fifteen
days’ wages.
Paid holidays
The following are the legal
paid holidays in Mexico:
• 1st of January (New Years Day);
• The first Monday in February
(in exchange for the 5th
of February);
• The third Monday in March (in
exchange for the 21st of March);
• Labour Day 1st of May;
• Independence Day
16th of September;
• The third Monday in November
(in exchange for the 20th
of November);
• 1st of December (every six
years upon inauguration of a
new president); and
• 25th of December.
Vacations
Employers with more than one
year of seniority are entitled
to six days of paid vacation.
That six-day period is increased
by two days per subsequent
year of seniority up to twelve
days. After the fourth year, the
minimum paid vacation period
is increased every five years
of services thereafter.
Vacation premium
Vacation days, as set above,
must be paid to the employee
plus an additional 25% of the
employee’s normal wage.
Profit sharing
As of the second year of
operations, all employers
must distribute among their
employees an amount equal to
10% of the employer’s pretax
profits; that percentage
is established by the National
Profit Sharing Commission.
50% of the 10% has to be
distributed in proportion to the
number of days worked by
each employee throughout the
year. The other fifty percent is
distributed according to each
employee’s wage.
Profit sharing must be paid to
the employees within 60 days
after the employer is required
to file its year-end income tax
return. Certain managerial
employees, such as directors,
managers and administrators,
are not entitled to profit sharing.
Training
All employers are required
to provide training to their
employees in order to increase
the employee’s productivity
and opportunities. The
employer must have training
programmes approved by the
Ministry of Labour and Social
Welfare. A Joint Commission
comprising an equal number
of representatives of the
employees and of the employer
must revise and implement
the company’s training and
instruction programme.
Health and safety
All employers are required
to provide a safe environment
for employees to render
their services and a place
of work that complies with
sanitary standards.
A Joint Health and Safety
Commission must be created to
investigate the causes of illness
and accidents and to propose
resources to avoid them.
Employers are also required
to comply with Federal Health
and Safety regulations and with
a number of Official Mexican
Standards regarding a number
of different topics such as
fire and accident prevention,
exposure to toxic substances and
employee protective equipment.
Working tools
Employers are required to
provide working tools and
working materials in order
for their employees to perform
their work efficiently. Those
working tools and materials
should be in acceptable
condition and be replaced by
the employer, with no additional
charge to the employee, as
soon as they wear out due
to regular wear and tear.
Immigration procedures
All foreign nationals entering
Mexico must have entry
permits or visas, depending
on the specific circumstances
of their stay.
The required documentation
may be obtained from Mexican
Foreign Service offices
abroad, including embassies
and consulates, and from the
immigration authorities in
ports of entry. Additionally,
certain tourism offices
authorised by the Ministry
may issue tourist visas.
Work permits and
self-employment
Work permits are generally
granted for periods of one
year; however, they may
be extended.
In general a prospective
employee must provide the
following documentation in
order to obtain the work permit:
• Invitation letter from Mexican
company with the offer of
position (employment contract);
• Sufficient resources while
working in Mexico;
• Passport;
• Photos; and
• Other identification.
.
The period of time to obtain the
work permit is around 6 weeks
In case of foreign nationals
who will be self-employed
in Mexico, the following
requirements exist:
• No minimum capital
investment is required; and
• Expatriates must apply for
investor status and must
be able to show sufficient
economic capability and
practical experience to
undertake a business operation.