Overtime to be Calculated Based on Working Time Agreed Upon by Parties of an Employment Relationship | ZFZ Postcard Cases

A decision by the Second Chamber of the Mexican Supreme Court was recently published, finally settling an existing split between circuit courts’ decision on the calculation of overtime worked by state employees.

In 2007, a circuit court ruled that a state employee has the right to claim overtime only if it exceeds the maximum statutory working time. By contrast, in 2009, another circuit court held that the basis of overtime must be the working time agreed upon by the parties of an employment relationship.

The Supreme Court sided with the 2009 ruling, holding that the statutory working time is a ceiling, but the parties are free to agree on a lower working time. Therefore, the basis to calculate overtime must be the time worked beyond this agreement, even if the maximum statutory working time is not exceeded.

Read more on the decision here (in Spanish).