Mexico Labor Law Guide 🇲🇽
Employees are entitled to a minimum of 12 days of paid annual leave after one year of service, increasing progressively with tenure. This is one of the lowest statutory minimums in Latin America but is guaranteed by federal law.
Mexico Labor Law Guide
Employees are entitled to a minimum of 12 days of paid annual leave after one year of service, increasing progressively with tenure. This is one of the lowest statutory minimums in Latin America but is guaranteed by federal law.
Primary Legislation
Ley Federal del Trabajo (Federal Labor Law)
Secondary Legislation
Ley Federal del Trabajo (Federal Labor Law)
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Start Free TrialGeneral Statutory Framework
Essential compliance data regarding minimum entitlement and standard work hours in Mexico.
Ref: Ley Federal del Trabajo Art. 76-81Employees are entitled to a minimum of 12 days of paid annual leave after one year of service, increasing progressively with tenure. This is one of the lowest statutory minimums in Latin America but is guaranteed by federal law.
Accrual
Leave accrues after completing one full year of service. The entitlement increases by 2 days per year until reaching 20 days after the fifth year, then increases by 2 days every five years thereafter.
Carry Over
Unused vacation days must be taken within six months of the anniversary date. After this period, the employer must pay compensation for unused days if they are not granted.
Standard Week
48 hours
Max Weekly
48 hours
Max Daily
8 hours
Rest Period
Employees must receive at least one full day of rest (24 consecutive hours) per week, typically Sunday. Working on the mandatory rest day requires 200% pay (double time).
Employment Contract & Termination
Notice Period
Mexico does not have at-will employment. Termination without just cause requires severance payment of 3 months' salary plus 20 days per year of service, plus accrued benefits. No advance notice period is legally required if severance is paid.
Ley Federal del Trabajo Art. 47, 48Probation Period
Employers may establish a probationary period of 30 days for general positions, extending up to 180 days for managerial, technical, or professional roles. During probation, termination is easier but still requires just cause.
Ley Federal del Trabajo Art. 39-ACore Labor Obligations
Operational rules regarding leave requests, sick pay, and public holiday work that every HR manager must know.
Ref: SecretarÃa del Trabajo y Previsión Social (STPS)Leave Requests
Employees should request vacation leave with reasonable advance notice as defined by company policy, typically 15-30 days. Employers cannot deny legally mandated vacation time.
Sick Pay
IMSS (Instituto Mexicano del Seguro Social) provides 60% salary replacement after the first three days of illness, up to 52 weeks. The first three days are unpaid unless company policy provides coverage.
Holiday Work
Working on mandatory paid holidays requires payment of 200% of regular wages (triple pay when including the holiday pay). Employees cannot be forced to work holidays without this premium.
Part-Time Calculation
Part-time workers receive proportional benefits based on their contracted hours. All statutory rights apply regardless of part-time status.
Parental & Family Leave
Maternity Leave
Female workers receive 12 weeks of fully paid maternity leave (100% of salary): 6 weeks before and 6 weeks after birth, covered by IMSS. Job protection is guaranteed, and termination during pregnancy or leave is prohibited.
Ley Federal del Trabajo Art. 170Paternity/Partner Leave
Fathers are entitled to 5 days of fully paid paternity leave, compensated by the employer at 100% of salary. This must be taken consecutively following the child's birth.
Ley Federal del Trabajo Art. 132 XXVII BisSick Pay & Compensation
Sick Pay
IMSS provides subsidized sick leave at 60% of salary from the 4th day of illness, up to 52 weeks. The first three days are unpaid unless the employer's policy provides coverage. Medical certification from IMSS is required.
Source: Ley del Seguro Social Art. 96-98Specific Laws & Regulations
Unique regulations and legal concepts that distinguish the Mexico labor market from others.
No At-Will Employment
Unlike the US, Mexico prohibits termination without just cause. Employers must prove serious misconduct or provide substantial severance (3 months + 20 days per year + benefits). This provides strong job security for workers.
Aguinaldo (Christmas Bonus)
All employees must receive an annual Christmas bonus (aguinaldo) equal to at least 15 days of salary, paid before December 20th. This is mandatory regardless of company performance and is prorated for employees who worked less than a full year.
Profit Sharing (PTU)
Companies with profits must distribute 10% of pre-tax profits to employees annually (Participación de los Trabajadores en las Utilidades). Distribution is based on salary and days worked. This is separate from salary and bonuses.
Overtime Criminal Penalties (2024 Reform)
The 2024 labor reform introduced criminal liability for employers who fail to properly compensate overtime or exceed maximum working hours. Overtime is paid at 200% for the first 9 hours per week and 300% thereafter. This reform significantly strengthened worker protections.
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Frequently Asked Questions
Are employees compensated if a public holiday falls on a weekend?
If a mandatory holiday falls on a non-working day, employees do not receive additional compensation unless they are required to work. Some civic holidays are moved to Monday to create 'puentes' (bridge weekends).
What happens if an employee falls ill while on annual leave?
If illness occurs during vacation and is properly certified by IMSS, those days may be converted to sick leave rather than vacation days, depending on company policy and the timing of medical certification.
Are public holidays paid time off?
Yes, all seven mandatory holidays are paid. If worked, employees receive triple pay (regular wage plus 200% premium). Civic holidays may be observed at the employer's discretion.
Looking for the holiday calendar?
View the official Mexico public holiday list for 2025.
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Disclaimer: This information is provided for general guidance only and does not constitute legal advice. Always consult official government sources and legal counsel for compliance matters.
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