News, Insights and Best Practices for Manufacturing in Mexico

Mexico manages overtime for mutual benefit

21 May 2015

Category: Labor & Economics, Manufacturing in Mexico

Understanding Mexico's workweek structure is important for companies looking south for offshoring advantages. Companies have a legitimate interest in seeing workers rewarded for their labor. Similarly, well-considered labor laws provide confidence that fatigue and burnout won't threaten safety or the work product. The Offshore Group takes both sets of interests seriously, monitoring labor requirements so you can focus on manufacturing a fantastic product.

"Mexico's overtime structure grants employees the necessary flexibility to be responsive to the needs of a 24/7-world economy."

Clear expectations benefit everyone
Public legal structures are created to place a framework around the contractual relationship of employees and their workplace. These laws exist to mutually benefit both the employer and the worker. Employers gain the flexibility they need to ramp up capacity, fill temporary vacancies and ensure that absences don't threaten production. The opportunity for employees to earn additional income is equally advantageous.

Overtime in Mexico
In Mexico, the standard daytime workweek includes up to 48 hours of standard time, dispersed throughout the week as needed. Reduced hour expectations exist for night and mixed-shift workers (42 and 45, respectively), accommodating manufactures' needs to provide around-the-clock production while providing protection for the work-life balance of shift workers.

Overtime hours are compensated at a higher rate. Employers may require up to nine hours of overtime at 200 percent of standard pay. Mexico's labor laws protect an employees right to accept overtime in excess of nine hours, should it be offered. However, overtime in excess of nine hours must be compensated at 300 percent of standard pay.

Mexico's overtime structure grants employers the necessary flexibility to be responsive to the needs of a 24/7-world economy. Workers' interests are protected, appropriately matching work-life balance with the opportunity to make more money. Importantly, domestic companies looking for talented manufacturing resources can have confidence in their offshoring solutions.

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