ployers, therefore, have wide discretion when determining what benefits, if any, to provide their employees, the wages they will receive, and the schedules they will work. Mexican employers do not have this same, or even similar, latitude regarding employee benefits and entitlements. For example, the Federal Labor Law entitles employees to the following fringe benefits: (1) an annual year-end bonus equal to at least 15 days’ wages, payable prior to December 20th of each year; (2) paid vacation with the number of days based on the employee’s years of service; (3) a vacation premium, in addition to the employee’s full wages, of 25 percent of the wages payable during the vacation period; (4) seven paid legal holidays; and (5) annual profit sharing at 10 percent of the employer’s profits.18 Mexican law additionally provides employees who are terminated with or without cause, as well as employees who resign with 15 or more years of seniority, a seniority premium equivalent to 12 days’ salary for each year
of service rendered.19 The Federal Labor Law further provides wage and hour regulations for Mexican employees. Employees’ wages must be at or above the official minimum wage rates set by the National Minimum Wage Commission each year. Mexico divides the country into three geographic zones for purposes of the minimum wage rates, with Zone A, which includes Mexico City, having the highest rate. While Mexican law mandates a minimum wage, the minimum wage rates pale in comparison to the minimum wage in the United States (and Texas), which is currently $7.25 per hour. For example, the minimum wage in Mexico City is 62.33 pesos per day (approximately $4.64 U.S. dollars) for 2012.20 Accordingly, Mexican law may guarantee employees various benefits to which employees are not statutorily entitled in Texas, but employees in Texas have the potential to earn significantly more money than their Mexican counterparts. The Federal Labor Law’s maximum
hours and overtime provisions further contribute to employees’ potential to earn more wages in Texas than in Mexico. Mexican law limits the amount of hours employees can work each day and the amount of overtime in a week. The maximum working day in Mexico is eight hours on the day shift (i.e., work performed between 6:00 a.m. and 8:00 p.m.), seven hours on the night shift (i.e., work performed between 8:00 p.m. and 6:00 a.m.), and seven and a half hours on shifts overlapping both the day and night shifts (provided that the night shift hours do not exceed three and a half hours).21 The working day includes all time during which the employee is at the employer’s disposal. The maximum number of hours that an employer may require its employees to work without having to pay overtime is 48 hours per week for the day shift, 42 hours per week for the night shift, and 45 hours per week for the swing shift. Further, employers may not require employees to work overtime for more than three hours a day three times
thehoustonlawyer.com
January/February 2012
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