Mexican Labor Law

THE COUNTRY
Mexico, officially the United Mexican States (31 States) is located in North America although culturally it identifies more with South and Central American countries. It has been independent from the Spanish Empire since 1821 and went through a tumultuous post-independence period that led to the Mexican Revolution in 1910. The Mexican revolution later culminated with the promulgation of the 1917 Constitution and the emergence of the country's current political system.

Mexico is one of the world’s largest free trade agreement networks and most diversified economies which makes the country a very attractive trade hub and according to World Bank reports by 2050, Mexico could become the world's fifth or seventh largest economy.
Employment Legislation
Mexican labor law is very paternalistic and follows a stability principle. The employment stability principle favors the employee, assuring and protecting the permanency and continuity in the employment relationship, unless there is a cause of termination limited and established by the Federal Labor Law. This contrasts with U.S. Labor Law which is ruled by the at-will employment doctrine.
The Federal Labor Law allows 3 types of agreements (Indefinite period, fixed term and specific task) with different probationary and training periods with the aim to protect employees from random dismissal and employers from keeping unskilled workers.
Basic Pay and Benefits
Although the minimum wage for a day ($5) is lower than the hourly for The U.S. ($7.25) the are more benefits, as a reflection of its paternalistic culture.
Holidays: The Federal Labor Law states that the following days are mandatory holidays:
• 1 January: New Years
• 5 February: Constitution Day
• 21 March: Benito Juarez’s Birthday Memorial
• 1 May: Labor Day
• 16 September: Independence
The most important risks covered by social security insurance benefits are: occupational hazards, sickness, maternity, disability, life, day care and retirement. These contributions are calculated based on the employee’s salary up and paid by both employee and employer, although the employer pays a significantly higher portion.
Labor representation and Unions
As a result of being a collectivist society, labor unions are part of the law and tradition. Different from the situation in The U.S. unions are well seen and associated with the idea of improvement and achievement of better work conditions.
Mexican Labor Law recognizes the employees’ right to unionize and to create a specific union to defend their interests. A union is defined as the association of employees established for the study, intention and defense of their respective interests. In the same way, unions are entitled to create federations and confederations. An employee’s union may be craft unions, company union, industrial union, national industrial unions, and unions formed by employees devoted to different professions. Employees are free to decide if they will be part of a union or if they will continue working as non-unionized