Mexico and Czech - Comparing the Labour Law

Mexico:

The number of hours per spend on the job by Mexican day shift laborer is 48 hours. If the working hour exceed legal working time - 48 hours, it will be counted as overtime work, the employer need to pay double for the first 9 hours, then pay triple after the first overtime working 9 hours. Also, if the employer require employee works on Sunday, the law command the company not only need to pay the basic wage, also pay extra 25 percent of the day wage. And Christmas is also one of significant festival in Mexico, many labours choose to get back home to celebrate the festival with family and usually the company or factory will shut down during Christmas and the New Year Holiday, the legal state that the companies need to pay at least 15 days wage to employees during Christmas holidays.

Czech Republic:

The Czech people normally 5 days working per week and 8 hours per day, after 40 hours will be counted as overtime working, the employer is not allowed to require employer week exceed 8 hours in 26 consecutive weeks, if the employer require further working after the labour working exceed 8 hours in 26 consecutives, it need to have consent of labour then can continue overtime work. In addition, same as Mexico – employer need to pay extra allowance to the employee who work on public holiday.

Conculsion

Comparing the labour law, it seems that Czech will have a better advantage. Auto-mobile always need to catch the producing deadline, the factory usually will demand whole factory overtime work in order to finish the order before the deadline, overtime working will be required a lot in auto-mobile industry. The overtime working in Mexico need to pay double even triples to the labour of the rate of wage which will cost a lot to the company especially to the mobile industry – which require overtime working easily. Instead, Czech will have a lower production labour cost although it has the working time restriction, but it will be tackled as long as have a proper dealing with the employees – consent of overtime working, also the labour law only require paying normal overtime working hours times rate of the original wage. Overall, the labour law of Czech will be less restriction and lower cost.

Legal environment--Environment Law

Mexico

On air pollution aspect, many manufacturing sites are restricted by government, no matter which location they are as long as inside Mexico. All air pollution emissions of factory must obtain an operating from government. On water pollution aspect, release wastewater, apply national water all require permission from the National Water Commission.

Czech Republic:

As long as the air pollution not exceed normal situation, it will not be rejected by the government, but some sources of air pollution may be restricted or forbidden temporarily. Moreover, the general manufacturing activities do not require authorization as the use of water will not diminish the standard or quantity of water.

Overall, Czech will be more suitable to set up the factory. As producing auto-mobile will occur many heavy mental waste and certain level pollution, firstly Czech have less restriction on pollution. Instead Mexico need to get licenses or permission form each government authority, it may increase the time or money cost such as the application fee and examining from government will take a while of time, if we cannot get the license successfully, and it will become a barrier of our production and set up. However, the restriction of pollution of Mexico are harsher, every release need to be checked by government frequently – it will occur when the company extend the pollution permission, then it will affect our produce process, it is unstable to the production process. And Czech have a greater freedom of manufacturing.