BajaNomad

Aguinaldo - Christmas Bonus

bajabound2005 - 12-25-2005 at 08:43 AM

The Christmas Bonus in Mexico? Has anyone heard about this? This is copied from www.mexconnect.com. Here is the direct link:

http://www.mexconnect.com/mex_/travel/KLM/klm1205.html

Know the Law in Mexico
A Series by Adriana Perez Flores ? 2005, All Rights Reserved


Christmas Bonus

The labor laws for the Republic of Mexico vary for each type of employee, and each type of employer. Unfortunately, very few of us who hire maids and gardeners, hire them according to the law. We hire them all "under the table" so to speak.

The reason for this short article is due to the Christmas holidays, which are just about upon us already. No matter what type of business you have or domestic help you may have, all employees deserve a Christmas bonus under Mexican labor law. Over and above the law, this also keeps a good relationship with your employees.

Employees are entitled by law to receive 15 days pay for their Christmas bonus. If an employee normally makes 1500 pesos in a 15 day period, then this amount would also be their Christmas bonus. Some calculations maybe required, but this is what they are entitled to. The law also states this Christmas bonus must be paid by the 20th of December. Because many of us have domestic help on a part-time basis, we recommend this payment be made by December 15th. Simply because we may not see these employees until after the 20th, it's just safer to mark your calendar for the 15th. For full-time employees whom we see every day, the 20th is the deadline.

Also remember to have your staff sign for the receipt of this holiday bonus, as well as their regular pay as well. It's always nice to have a record of these things in case of any problems that may, and hopefully do not arise in the future.

If the employee has been in your employ for less than a year, these amounts are prorated.

During the Christmas season, there are two statutory holidays to consider. One is Christmas day, and the other New Year's Day. It was brought to our attention by a reader that we in fact had made an error. We had informed you that if an employee works a statutory holiday, he or she must be paid double time. They actually do receive double time, but this is in addition to their regular time, which in effect is triple time. This is true for any statutory holiday throughout the year on which an employee may work. If the day happens to fall on a regularly scheduled work day, and they have the day off, they still must be paid. And again, if they work that day, they get triple time. Thank-you for the heads-up readers!

bajalou - 12-25-2005 at 10:14 AM

Yup - I've heard of it - The local workers like it

Bob and Susan - 12-25-2005 at 10:24 AM

True...

...and they get "mothers day" off too...

Aguinaldo

tehag - 12-25-2005 at 10:31 AM

Some expect it, some don't, but all receive it gladly. The garbage men like a sixpack of Noche Buena.

Dave - 12-25-2005 at 11:03 AM

In addition to a holiday bonus, the employer is required to pay SS/medical benefits and pro-rated vacation time. Don't think that because you pay "under the table" you are either exempt or your employee won't claim. The problem usually arises when they seek medical attention or get fired.

The only way to avoid this is by hiring contract labor, and this only works if they are registered with Hacienda. Few are.