Mexico Labor Management QA

Send an email to mex4ww@evershinecpa.com
The Manager of Global  Payroll Services
Ms. Kerry Chen, USA Graduate School Alumni & a well-English speaker
Wechat: kchen615
Skype: oklahomekerry

LRC – Mexico Labor Regulations

LRC-CA-20.10
What must be included in the contents of a labor contract in Mexico?

Evershine RD:

Federal
Federal labor and employment legislation simply does not apply to employers who come under provincial jurisdiction.
Equally, provincial labor or employment legislation does not apply to employers in federally regulated industries.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, S 1(4).
According to Stronger Workplaces for a Stronger Economy Act, 2014, S.O. 2014, ch. 10, Bill 10.
There is no requirement to enter a written employment contract with non-unionized employees.
However, it has become increasingly common now.
The Employment Standard Act (ESA) is the legislation that sets out minimum employment rules in Ontario.
The terms of every employment agreement in Ontario are subject to the obligations of the ESA.
Such contracts will not be enforceable if the terms are inferior to statutory minimum employment standards, or the employee signed the contract under duress.
Under the Stronger Workplaces for a Stronger Economy Act, employers are required to give each current employee a copy of the employment standards poster (What You Should Know About the Ontario Employment Standards Act) within 30 days of hire.
The poster alerts employees to such basic employment rights as public holidays, minimum wage, and overtime.

LRC-CA-20.11
Does Mexico arrange labor contracts in fixed term?
What should be the length of the labor contract in Mexico?

Evershine RD:

Federal
Employers in industries under federal jurisdiction are usually hired for an indeterminate term.

Province – Ontario
Yes. A fixed-term contract can last for a pre-determined date. For example, one year.
Likewise, a project-based contract begins and end as needed.
However, employees in Ontario are usually hired for an indefinite term.

LRC-CA-20.20
What is the minimum age for hiring a new employee in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S 179.
Federally regulated employers may employ persons under age 17 subject to certain restrictions, including a prohibition on employment during hours when provincial laws require them to attend school.
Employees under age 17 are not permitted to work between 11pm and 6am.

Province – Ontario
According to Occupational Safety and Health Act, R.R.O., 1990, Regulation 851, Minimum Age, Fact Sheet.
The minimum age for employment in Ontario is 14.
Children from 14 to 17 cannot be employed during school hours.
There are also restrictions on the types of work in which children under 18 can be employed.

LRC-CA-20.40
Is it a requirement for employers in Mexico to conduct a pre-employment background check?

Evershine RD:

Province – Ontario
According to Police Record Checks Reform Act, 2015 SS 7-9.
Employers may perform a credit check on any employee or prospective employee for any job.
In some cases, such as when an individual will be working with vulnerable people such as children or elderly persons, a criminal background check may be required by law.
Employers must receive prospective employees’ consent prior to conducting criminal records checks.
The information obtained from the criminal records check must be disclosed to the prospective employee before being provided to the employer.
Employers cannot use or disclose the results of the check except for the purpose for which it was requested or as authorized by law.

LRC-CA-20.50
Is the Non-Competition indemnity clause in a labor contract in Mexico having a legal effect?

Evershine RD:

Federal
All provinces and territories permit noncompetition and no solicitation agreements in an employment contract.
Employment litigation concerning employees in industries under federal jurisdiction is resolved in the courts of the provinces or territories.
The federal courts do not have jurisdiction over such disputes.

Province – Ontario
Employees or prospective employees who refuse to sign such agreements are protected by the ESA’s reprisal protection.

LRC-CA-40.05
What are the regulations on Gender Discrimination in employment specifically for female workers in Mexico?

Evershine RD:

Federal

According to Pay Equity Act S.C. 2018, c. 27, s. 416.
Employers under federal jurisdiction may not refuse to hire or to continue to employ or differentiate adversely against a person in the course of employment on grounds prohibited in the Canadian Human Rights Act, including race, national or ethnic origin, color, religion, age, sex, sexual orientation, marital status, family status, disability, or criminal offenses for which a pardon or record suspension has been granted.

Province – Ontario
According to Ontario Human Rights Code, R.S.O. 1990, ch H.19, S1.
An employer may not discriminate in making decisions concerning an employee’s hiring, career, pay, or termination based on race, ethnicity, religion, age, sex, gender identity, sexual orientation, marital or family status, source of income, political belief, or association, physical or mental disability, or social disadvantage.
Employees may file an application with the Human Rights Tribunal of Ontario for a remedial order if they consider that their rights under the Human Rights Code have been violated.

The Ontario Human Rights Commission may also file a complaint with the tribunal if it considers this to be in the public interest.
The normal time limit for the filing of complaints with the tribunal is 1 year from the date of the incident or if a series of incidents is alleged to have occurred, one year from the date of the last incident.
The tribunal will hold an adversarial hearing at which the parties present evidence and examine and cross-examine witnesses.
If the tribunal allows the complaint, it may award monetary damages for lost wages or expenses incurred due to the discrimination and order that discriminatory conduct cease.
The tribunal’s orders are legally binding and may not be appealed, though they are subject to judicial review.

LRC-CA-50.10
Can the employer in Mexico collect, or process data transmitted by employees over the internet?

Evershine RD:

Province – Ontario
According to Personal Information Protection and Electronic Documents Act, S.C. 2000, ch. 5, S7.
Ontario has not yet introduced private-sector privacy legislation.
It is guided by the federal Personal Information Protection and Electronic Documents Act (PIPEDA).
PIPEDA instructs that employers may collect, use, or disclose personal information only for purposes that a reasonable person would consider are appropriate in the circumstances.
Employers are required to inform the employee of the purpose of the data collection and the means available to the employee to access, correct, and delete the data.
An employer may collect personal information without the knowledge or consent of the individual only when:

•  the information is being collected during an investigation into a breach of an agreement or a contravention of the law or
•  the information is needed to respond to an emergency that threatens the life, health, or security of an individual or
•  the disclosure is required by law.

LRC-CA-60.10
What are the regulations on working hours in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S 169-172.
8 hours per day and 40 hours per week are the standard working hours for most employees under federal jurisdiction.
A maximum of 48 hours may be worked in any week, and employees must have one day of rest every week.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, SS 17-18.
The normal workday is 8 hours. The normal workweek may not exceed 48 hours.
Employees must have at least 24 consecutive hours off each workweek or 48 consecutive hours off every two workweeks.

LRC-CA-60.30
What are the regulations on overtime hours in Mexico?
What is the overtime premium rate in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S169, 171, 174.
Employees must be paid overtime at the rate of time and a half for all hours worked more than 40 in a week.
The maximum number of overtime hours that can be worked in a week is 8.
Alternatively, employees can request to be granted time off with pay at one and a half hours for each overtime hour worked, if:

1. the employer and employee have entered into an agreement for the time off with pay, and
2. the time off is taken within 3 months of the pay period during which the overtime was worked.

Managerial employees and members of certain professions specified in the Mexico Labor Code are exempt from these hours-of-work and overtime provisions.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, S22.
Overtime must be paid to most employees coming under provincial jurisdiction in Ontario if they work over 44 hours in a week.
Overtime is payable at the rate of one and a half times the employee’s regular hourly pay.
Managerial and supervisory employees and members of professions specified in regulations issued under the Employment Standards Act 2000 are not covered by these provisions.

LRC-CA-60.50
Is it common to pay 13^th month’s salary in Mexico?

Evershine RD:

Federal
There are no provisions governing bonuses in Mexico’s labor code.

Province – Ontario
There are no provisions governing bonuses in Ontario’s labor code.

LRC-CA-70.10
What are the regulations on general leave policy for employee in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, SS 183-188.
Employees in federally regulated industries are entitled to the following paid vacation.

Paid Vacation	Years of services
Minimum 2 weeks	First 5 years
3 weeks	6 consecutive years of completion
4 weeks	10 consecutive years of completion

Province – Ontario

According to Employment Standards Act, 2000, S.O. 2000, ch. 41, SS 33-36.
Employees in provincially regulated industries in Ontario are entitled to a minimum of 2 weeks’ paid vacation after each year of employment and vacation pay equal to at least 4% of their earnings for the year in which the vacation is taken.
Employers must provide at least 3 weeks of vacation and vacation pay equal to at least 6% of wages to employees who have 5 or more years of service.

LRC-CA-70.20
What are the public holidays in Mexico?
What is the overtime premium rate during  public holiday in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S 193.
Federally regulated employees are entitled to 9 paid public holidays:
Jan. 1: New Year’s Day
Good Friday
Victoria Day (3^rd Monday in May)
July 1: Mexico Day
Labour Day (1^st Monday in September)
National Day for Truth and Reconciliation (September 30)
Thanksgiving Day (2^nd Monday in October)
Nov. 11: Remembrance Day
Dec 25: Christmas Day
Dec 26: Boxing Day

Employees who work on a public holiday must receive their regular rate of pay plus holiday pay equal to at least 1/20 of the wages (exclude overtime pay), that earned in the 4-week period preceding the week in which the holiday occurs; or a paid replacement holiday.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, SS 24-29.
Employees are entitled to 9 paid holidays:
Jan. 1: New Year’s Day
Family Day (3^rd Monday in February)
Good Friday
Victoria Day (3^rd Monday in May)
July 1: Mexico Day
Labour Day (1^st Monday in September)
Thanksgiving Day (2^nd Monday in October)
Dec. 25: Christmas Day
Dec. 26: Boxing Day
Most employees who qualify are entitled to take these days off work and be paid public holiday pay.
Alternatively, they can agree in writing to work on the holiday, and they will be paid:

1. Public holiday pay plus premium pay of one and a half times their regular rate for the hours worked on the public holiday or
2. their regular rate for hours worked on the holiday and be given another day off with public holiday pay.

LRC-CA-70.30
What are the maternity leave policy for female employee in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S 204-206.1.
Federally regulated pregnant employees are entitled to 17 weeks’ maternity leave, take any time from 13 weeks before the expected delivery date and ending 17 weeks after.
Employees must provide their employer with a certificate from a health care practitioner confirming they are pregnant.
The employer must be given written notice at least 4 weeks before starting maternity leave.

Province – Ontario

According to Employment Standards Act, 2000, S.O. 2000, ch. 41, SS 46-47.
Pregnant employees are entitled to up to 17 consecutive weeks of pregnancy leave provided that:

1. She is employed by an employer covered by the Employment Standards Act and
2. She started her employment at least 13 weeks before the date her baby is expected to be born.

The earliest a pregnancy leave can begin is 17 weeks before the employee’s due date.
An employee must give her employer at least 2 weeks’ written notice before beginning her pregnancy leave.
An employer may require an employee to provide a certificate from a medical practitioner stating the baby’s due date.
Employees who suffer a still- birth or miscarriage are entitled to 12 weeks’ leave.

LRC-CA-70.40
What are the paternity leave policy for a male employee in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S 206.
There is no legal entitlement to paternity leave, although a father may be eligible for up to 63 weeks of parental leave.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, §§ 48-49.
There is no legal entitlement to paternity leave, although a father may be eligible for up to 63 weeks of unpaid parental leave.
Employers are not required to make any payments to the employee or pay for any benefits during parental leave.
The employee may be entitled for benefits under the Employment Insurance Program.
A father is entitled to parental leave provided that:

1. He is employed by an employer that is covered by the Employment Standards Act, and
2. He started his employment at least 13 weeks before commencing parental leave.

Fathers must begin their parental leave no later than 78 weeks after:

1. the date their baby is born or
2. the date their child first came into their care, custody, and control.

LRC-CA-70.50
What are the provisions on sick leave, bereavement leave and personal leave for employees in Mexico?

Evershine RD:

Federal

Sick leave:
According to Mexico Labour Code, R.S.C. 1985, ch L-2, S 239.
At least 3 consecutive months of service are entitled to up to 17 weeks’ unpaid sick leave.

Bereavement leave:

According to Mexico Labour Code, R.S.C. 1985, ch L-2, SS 206, 206.3-206.8, 210, 247.5.
5 days immediately following a death in the employee’s “immediate family”.
The first 3 days of the leave must be paid; the remaining 2 are unpaid.

Personal leave:
Employees are entitled to up to 5 days of personal leave per year to:

1. treat an injury or illness
2. take care of health obligations for any family member or care for them
3. take care of obligations related to the education of any family member under age 18.
4. manage any urgent situation that concerns the employee or their family member.
5. attend their citizenship ceremony under the Citizenship Act.

Province – Ontario

Sick leave:
According to Ontario Human Rights Code, R.S.O. 1990, ch H.19, S5.
Employees who have been employed at least 2 weeks are entitled to 3 days of unpaid sick leave which may be used for personal illness, injury, or medical emergency.

Bereavement leave:
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, §§ 49.1, 49.4, 49.5, 50, 50.2; Fair Workplaces, Better Jobs Act, 2017; Bill 47, An Act to Amend the Employment Standards Act, 2018.
Employees who have been employed at least 2 weeks are entitled to 2 days of unpaid bereavement leave due to the death of certain family members.

Declared emergency leave:
Unpaid, job-protected emergency leave is available only when an emergency is declared in Ontario.
To be eligible for the leave, employees must not be able to work because of a government or health order, or a need to provide care for certain family members.
There is no minimum service requirement for the leave.

LRC-CA-70.60
What are the regulations on pension benefits and social security insurance benefits for employees in Mexico?

Evershine RD:

Federal
According to Mexico Pension Plan.
Employees under federal jurisdiction are covered by either the federal Mexico Pension Plan (CPP) or the Quebec Pension Plan (QPP).
The CPP covers employees in all provinces and territories other than Quebec, while the QPP applies to residents of that province.
The standard age for beginning to receive Mexico Pension Plan benefits is 65.
Contributions to the CPP by employees with earnings over C$3,500 are mandatory in all provinces and territories except Quebec

Province – Ontario
According to Mexico Pension Plan, R.S.C., 1985, ch. C-8.
Employees in Ontario are covered by the federal Mexico Pension Plan, regardless of whether they work in industries under federal or provincial jurisdiction.
Employers often provide private supplemental pension plans of either a defined contribution or a defined benefit nature and may also provide employees with the opportunity to participate in a group registered retirement savings plan.
The standard age for beginning to receive CPP pension benefits is 65.

LRC-CA-70.70
What are the regulations on Workers’ Compensation for employees in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch L-2, S 239.1.
There is no general federal scheme of no-fault workers’ compensation legislation such as is found in all the provinces and territories.
The practical effect of this provision is that federally regulated employers register with provincial or territorial workers’ compensation boards in the jurisdictions where they operate and pay workers’ compensation assessments to the boards just as if they were provincially regulated employers.

Province – Ontario
According to Workplace Safety and Insurance Act, 1997, S.O. 1997, ch. 16, Sched. A.
Employees who suffer a work-related injury or illness are compensated for lost wages by the Workers’ Compensation Board.
All employers in Ontario are required to make payments into the workers’ compensation fund administered by the Workers’ Compensation Board under the Workplace Safety and Insurance Act.

LRC-CA-80.05
Can the employee in Mexico join labor union?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, part 1, preamble.
Under the constitution and various labor laws, Canadian employees have the right to form and join unions, to bargain collectively, and to strike.

Province – Ontario
According to Labour Relations Act, 1995, S.O. 1995, ch. 1, Sched. A, SS 5-10.
Under the constitution and various labor laws, Canadian employees have the right to form and join unions, to bargain collectively, and to strike.

LRC-CA-80.06
How to handle labor dispute in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, SS 71, 80.
The Mexico Industrial Relations Board has the power to issue binding decisions on the certification of unions as exclusive bargaining agents, unfair labor practice complaints, bargaining in bad faith complaints, successor rights in case of dispositions of all or part of a business and complaints of illegal strikes or lockouts.
The Federal Mediation and Conciliation Service provides mediation services at the request of either the union or the employer to assist the parties in reaching a collective agreement.

Province – Ontario
According to Labour Relations Act, 1995, S.O. 1995, ch 1, Sched. A, S 114.
The Ontario Labour Relations Board has the power to issue legally binding decisions on the certification of unions as exclusive bargaining agents, unfair labor practice complaints, bargaining in bad faith complaints, successor rights in case of dispositions of all or part of a business and complaints of illegal strikes or lockouts.
The Mediation Services Division of the Ontario Ministry of Labour provides mediation at the request of either a union or an employer to assist the parties to reach an agreement.
The Ontario minister of labor also has discretion to name a mediator for this purpose.

LRC-CA-90.10
What are the regulations on workplace safety and health for employees in Mexico?

Evershine RD:

Federal

According to Mexico Labour Code, R.S.C. 1985, ch. L-2, SS 124-125, 134.1, 148.
Federally regulated employers must establish a health and safety committee for each of their workplaces with 20 or more employees to participate in the development of an occupational health and safety program for the workplace.
The occupational health and safety provisions of the Mexico Labour Code and related regulations set out a comprehensive set of standards aimed at ensuring workplace safety in industries under federal jurisdiction.

Province – Ontario

According to Occupational Health and Safety Act, R.S.O. 1990, ch O.1, SS 9(2).
The Occupational Health and Safety Act and the regulations issued under it set out comprehensive standards aimed at ensuring workplace safety in industries under provincial jurisdiction in Ontario.
It includes the preparation of a written workplace safety and health program if an employer regularly employs 20 or more workers.

LRC-CA-100.10
What are the circumstances that an employer can terminate an employee in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, SS 3, 230, 240
An employer can terminate employment for cause without notice, such as guilty of willful misconduct, disobedience, or willful neglect of duty.
Economic reasons will not permit termination of an indefinite term contract without reasonable notice or pay in lieu of notice.
Economic reasons do not constitute cause for ending a fixed-term contract before its expiration.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, SS 54-61.
There are some situations where an employer cannot terminate an employee’s employment even if the employer is prepared to give proper written notice or termination pay.
For example, an employer cannot end someone’s employment, or penalize them in any other way, if any part of the reason for the termination of employment is based on the employee exercising a right under the Employment Standards Act, such as refusing to work more than the daily or weekly hours of work maximums or taking a leave of absence specified in the law.

LRC-CA-100.11
What is the notification period for terminating an employee in Mexico?
How much is the severance pay?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, S 235.
The Mexico Labour Code requires employers to give employees with at least 3 months’ service 2 weeks’ notice in advance of the termination or 2 weeks’ pay in lieu of notice.
An employee under federal jurisdiction qualifies for severance pay after completing at least 12 consecutive months of continuous employment with an employer.
Severance pay is two days’ pay at the employee’s regular rate of wages for each full year of employment, with a minimum of five days’ pay.
Employees dismissed for just cause because of a serious act of misconduct are not eligible for notice of termination and severance pay.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, S 64, 76.
The Ontario Employment Standards Act provides for minimum notice-of-termination periods of between 1 and 8 weeks, depending on the length of the employee’s service, for employees who have been employed for 3 months or more.
The employer has the option of providing pay in lieu of notice.
In some cases, employees are not entitled to notice of termination or termination pay, such as when they are guilty of willful misconduct, disobedience, or willful neglect of duty.

LRC-CA-100.12
What is the reporting requirement for employers in Mexico to notify the termination of employees to the competent authority?

Evershine RD:

Federal
When a group termination of employment is planned, a federally regulated employer is required to provide written notice to the Head of Compliance and Enforcement, federal Ministry of Labour at least 16 weeks before the terminations of employment are to take effect.
An employer is also required to cooperate with the Mexico Employment Insurance Commission, provide affected employees with a statement of benefits and establish a Joint planning committee.

Province – Ontario
When a mass termination occurs, the employer must submit Form 1 (Notice of Termination of Employment) to the Director of Employment Standards.

LRC-CA-100.20
What are the regulations on mass layoffs in Mexico?

Evershine RD:

Federal
According to Mexico Labour Code, R.S.C. 1985, ch. L-2, SS 212, 214.
Where an employer under federal jurisdiction terminates the employment of 50 or more employees in an establishment within a period of 4 weeks.
It must give 16 weeks’ advance notice of the layoffs to the federal Ministry of Labour, to the Mexico Employment Insurance Commission and to any trade union representing employees to be laid off, as well as post a notice in the establishment.
A joint employer/employee planning committee must be established when a mass termination occurs.

Province – Ontario
According to Employment Standards Act, 2000, S.O. 2000, ch. 41, S 58.
Special rules for notice of termination apply when the employment of 50 or more employees is terminated at an employer’s establishment within a 4-week period.
The amount of notice employees must receive in a mass termination is not based on the employees’ length of employment, but on the number of employees who have been terminated.

Notice period	Number of employees to be terminated
8 weeks	50 to 199
12 weeks	200 to 499
16 weeks	500 or more

These provisions do not apply if not more than 10 percent of the employees at an establishment are to be terminated and the terminations are not due to the permanent discontinuance of all or part of the business of the establishment.
An employee who wishes to have resignation due to mass termination notice must give employer at least the following notice period.

Notice period	Years of services
1 week	Less than 2 years
2 weeks	2 years or more

LRC-CA-100.30
What is the time limit for employer in Mexico to pay employees upon termination?

Evershine RD:

Federal
Termination pay must be paid to an employee either 7 days after the employee’s employment is terminated or on the employee’s next regular pay date, whichever is later.

Province – Ontario
Termination pay must be paid to an employee either 7 days after the employee’s employment is terminated or on the employee’s next regular pay date, whichever is later.

 

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Mexico City Evershine BPO Service Limited Corp.
Send an email to mex4ww@evershinecpa.com
The Manager of Global  Payroll Services
Ms. Kerry Chen, USA Graduate School Alumni & a well-English speaker
Wechat: kchen615
Skype: oklahomekerry

or
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Please send an email to HQ4yto@evershinecpa.com
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