updates in labor law

CERRALVO LAW OFFICE INFO: legal advice on labor law...
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Vacation. Employees employed for more than one year are entitled to at least 6 days paid vacation. Vacation leave is increased 2 days for each additional year up to a maximum of 12 days. Additionally, for every 5 years of service, 2 additional days must be added. A quick guide for calculating vacation is as follows:
Year 1 - 6 days, Year 2 - 8 days, Year 3 - 10 days, Year 4 - 12 days, Year 5 -14 days, Year 10 -16 days, Year 15 18 days
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Vacation Premium.Employers must pay a vacation premium to employees equal to 25% of the wages payable during the vacation period.
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Legal Holidays. Mexico has 7 paid legal holidays including:
- January 1 (New Year’s Day), - February 5 (Constitution Day), - March 21 (Benito Juarez Day), - May 1 (Labor Day), - September 16 (Independence Day),
- November 20 (Revolution Day), - December 25 (Christmas).
- In addition to those already mentioned, every 6th year when a new president is sworn into office, employees receive a paid day off on December 1 (Inauguration Day).
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YOUR FRIEND: MIGUEL LEÓN. CELL 612 167-1375 .. OFFICE. 114 0341

November 30, 2012
Mexico Enacts Important Reforms to the Federal Labor Law

Authors: Oscar De la Vega, Mónica Schiaffino, Eduardo Arrocha, and Liliana Hernandez
Mexico's Federal Official Gazette today published a Decree that reforms and repeals various provisions of its Federal Labor Law (FLL). The reform will become effective on December 1, 2012, with some exceptions which are discussed below. The FLL had not been subjected to any substantial modifications since 1970. Accordingly, the reform has extensive implications for employers with operations in Mexico.

Below we provide a summary of the FLL reforms and their potential impact.

Employment Relationship

The reform adds seasonal employment agreements and initial training agreements as new types of employment contracts, in addition to those already permitted under the statute (i.e., employment contracts for specific work and for a definite or indefinite period).

The initial training employment agreements must establish a time period of three months, as a general rule, and six months, for executive positions. Additionally, a probationary period of 30 days, generally, and 180 days, for executive positions, will apply to employment agreements for an indefinite term or to those exceeding 180 days.

Notably, the reform adds the requirement that, in order to avoid employer liability, the opinion of the Joint Commission for Productivity and Training must be taken into consideration before terminating an "initial training employment agreement" or an employment agreement subject to a probationary period. Requiring the opinion of the Joint Commission for Productivity and Training will likely result in a bureaucratic and potentially conflictive process.