Employment contracts are subject to what is expressly agreed therein and to the consequences established by labor regulations, good faith and equity.

Internal Labor Law Regulations

The Internal Labor Regulations are a set of mandatory provisions for both workers and employers, some of these provisions are those related to the hours of entry and exit of workers; days and places of payment; rules to prevent occupational hazards; permits and licenses; time and manner in which workers must undergo medical examinations; among others. In order to create the Internal Labor Regulations, a mixed commission of representatives of the workers and the employer is required, it must be in accordance with the law and must be filed with the Conciliation and Arbitration Board.

Working Conditions

The working conditions must be in writing; however, the lack of a written document does not deprive the employee of the rights derived from the law and from the services rendered.

The following are working conditions: the place or places where the work is to be performed; the length of the workday; the form and amount of the salary; the day and place of payment of the salary; the conditions of training or instruction; the days of rest; vacations and others agreed upon by the employee and the employer.

Dismissal

The dismissal of an employee may be justified or unjustified. It will be justified when the causes for termination foreseen in article 47 of the Federal Labor Law are actually configured. The employer who dismisses an employee must give written notice clearly indicating the conduct or conducts that motivate the termination and the date or dates on which they were committed. The notice must be delivered personally to the employee at the time of dismissal or, alternatively, it must be communicated to the competent Conciliation and Arbitration Board so that the Board notifies the employee personally.

The dismissal of the employee will be unjustified when the employer has not given notice to the employee personally or through the Board of the termination of the employment relationship. The unjustified separation produces the nullity of the dismissal. In the case of unjustified dismissal, the employee, before the competent Conciliation and Arbitration Board, may request, at his choice, to be reinstated in the job he was performing or to be compensated with the amount of three months’ salary.

Coalitions, Unions and Strikes

The Federal Labor Law establishes specific provisions that provide for and regulate coalitions, unions and strikes. The coalition is the temporary agreement of a group of workers or employers for the defense of their common interests. The union is the association of workers or employers, constituted for the study, improvement and defense of their respective interests. Strike is the temporary suspension of work carried out by a coalition of workers.

Social Security

The purpose of social security is to provide protection and improve the welfare of workers and their families. It is a human right contemplated by the Political Constitution of the United Mexican States and by the Universal Declaration of Human Rights. The applicable legislation in this matter, in the case of labor relations contemplated by article 123 paragraph A of the Mexican Constitution, is the Social Security Law (IMSS Law) and its regulations. In the case of labor relations provided for in article 123 paragraph B of the Mexican Constitution, the Law of the Institute of Social Security and Social Services for State Workers (ISSSTE Law) and its regulations are applicable. Social Security covers occupational risks and accidents; occupational and general illnesses; maternity; disability; retirement; preventive medicine; medical services and pensions; day care centers and social benefits.

Labor Procedural Law

Title Fourteen of the Federal Labor Law refers to the Labor Law Process, which is public, free of charge, immediate, predominantly oral and conciliatory, and is initiated at the request of a party. The Local Conciliation and Arbitration Boards and the Conciliation and Arbitration Boards of the Federal Entities will be competent to hear disputes arising within their jurisdiction that do not fall under the jurisdiction of the Federal Boards. The Federal Conciliation and Arbitration Boards will hear labor disputes in the industrial branches, companies or matters referred to in Article 527 of the Federal Labor Law, among which are the textile, electric, cinematographic, coal, sugar, mining, metallurgical, hydrocarbon, petrochemical, cement and other industrial branches; and companies that are administered directly or decentralized by the Federal Government or that perform work in federal zones, among others.

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