Labor Law Essay 5 - 1998063

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Labor law

Essay #5

Elizabeth Stephanie Hernández Casas 1998063

According to the Law and to the Comisión Nacional para la Participación de los Trabajadores en las
Utilidades de las Empresas (CNPTU), all employees of a company must receive a part of the utilities
of the company. Utilities must be paid within the next 60 days of their tax declaration, in case of an
increase in the income because of the resolution of an objection form the workers, the difference
must be paid during the next 60 days. If an employee can’t claim their utilities, they must be
incorporated into the next year’s utilities. Utilities are given in two halves: One is equally distributed
according to the days worked in the year, and the other is distributed according to the salary received
by each employee. The employees that must receive utilities are: Trusted employees who earn less
than the highest paying union employee; any working mother, and construction workers that worked
during the year. However, employees who do not receive utilities are: directors, administrative staff
managers, and domestic employees. The companies and organizations that are exempted to
distribute utilities to their employees are:
● New companies during the first year
● New companies creating a new product, during the first two years
● Extraction companies, within the period of exploration.
● Private Assistance Institutions.
● IMSS and any other public institute
● Companies that don’t have the minimum amount of capital required by the industry.

Training is the process of preparing the employee to boost their productivity and enhancing their
knowledge and expertise in an area, every employee must receive constant training to fulfill every
aspect of their lifestyle. While receiving training employees must be in time, attend the indications,
and take the corresponding evaluations of their knowledge and aptitudes.

Productivity refers to optimizing any human, material, finance, and technological factors of a
company. In order to elevate the productivity in a company, the law compels them to:
● Make an objective diagnosis of the company’s productivity
● Adequate the material, technological and finance conditions
● Improve the coordination system between employees
● Evaluate the development and compliance to the productivity programs
● Improve work and hygiene conditions

According to the article 159 of the LFT, definitive, provisional (more than 30 days), and new posting
must be covered with: the immediate subordinated worker, the most capable or apt, the one with
most seniority, or the most productive. Employers must prefer:
- Mexican employees
- Employees with the most seniority
- People without an income and have to support a family
- People who finished basic education
- People with more knowledge to perform a job
- Unionized employees

Every employee who has been working in a company for over 15 years, must receive the seniority
bonus after their contract is terminated, either wrongfully, or by mutual consent. The seniority bonus
consists of 12 days of salary for each year of employment. If the salary of an employee is greater
than the minimum wage by double, it is taken as the maximum amount when calculating the bonus.
If an employee creates an invention in the workplace, the inventor has the right over their invention;
If the employee investigates and researches with the company’s resources, the invention is
accountable to the employer; and in any other cases, the property rights of the invention belongs to
its creator, but the employee has a preference in selling the rights.

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