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Brazil

Section 7. Worker Rights

e. Acceptable Conditions of Work

The law provides for a minimum wage. The minimum wage was greater than the official poverty income level. According to the Brazilian Institute of Geography and Statistics (IBGE), however, in 2016 the per capita income of approximately 40 percent of workers was below the minimum wage. IBGE data also indicated 6.8 percent of workers (12.9 million) were considered “extremely poor” or earning less than R$70 ($17.50) per month. The Ministry of Economy verified enforcement of minimum wage laws as part of regular labor inspections. Penalties alone were not sufficient to deter violations.

The law limits the workweek to 44 hours and specifies a weekly rest period of 24 consecutive hours, preferably on Sundays. The law also provides for paid annual vacation, prohibits excessive compulsory overtime, limits overtime to two hours per workday, and stipulates that hours worked above the monthly limit must be compensated with at least time-and-a-half pay; these provisions generally were enforced for all groups of workers in the formal sector. The constitution also provides for the right of domestic employees to work a maximum of eight hours of per day, a maximum of 44 hours’ work per week, a minimum wage, a lunch break, social security, and severance pay.

The Ministry of Economy sets occupational, health, and safety standards that are consistent with internationally recognized norms, although unsafe working conditions were prevalent throughout the country, especially in construction. The law requires employers to establish internal committees for accident prevention in workplaces. It also provides for the protection of employees from being fired for their committee activities. Workers could remove themselves from situations that endangered their health or safety without jeopardy to their employment, although those in forced labor situations without access to transportation were particularly vulnerable to situations that endangered their health and safety.

The Ministry of Economy addressed problems related to acceptable conditions of work such as long workdays and unsafe or unhygienic work conditions. Penalties for violations include fines that vary widely depending on the nature of the violation. Fines were generally enforced and were sometimes sufficient to deter violations. The National Labor Inspection School held various training sessions for labor inspectors throughout the year. The number of labor inspectors was insufficient to deter violations.

According to the IBGE, in 2018, 33.3 million persons were employed in the formal sector (excluding domestic workers). The IBGE also reported 11.5 million persons were working in the informal economy and 23.8 million were self-employed.

China (Includes Hong Kong, Macau, and Tibet)

China (Includes Hong Kong, Macau, and Tibet) – Hong Kong

Section 7. Worker Rights

e. Acceptable Conditions of Work

The statutory minimum wage was below the poverty line for an average-sized household. There were many press reports regarding poor conditions faced by and underpayment of wages to domestic workers.

There is no law concerning working hours, paid weekly rest, rest breaks, or compulsory overtime for most employees. Several labor groups reported that employers expected extremely long hours, and the groups called for legislation to address that concern.

Laws exist to provide for health and safety of workers in the workplace. Workers may remove themselves from situations that endanger health or safety without jeopardy to their employment. Employers are required to report any injuries sustained by their employees in work-related accidents.

The government effectively enforced the law, and the Labor Tribunal adjudicated disputes involving nonpayment or underpayment of wages and wrongful dismissal. The number of labor inspectors was sufficient to deter violations except in the cases of nonpayment or underpayment of wages to and working conditions of domestic workers. Penalties for violations of the minimum wage or occupational safety and health violations include fines, payments of damages, and worker’s compensation payments. These penalties were sufficient to deter violations.

The Occupational Safety and Health Branch of the Labor Department is responsible for safety and health promotion, identification of unsafe conditions, enforcement of safety management legislation, and policy formulation and implementation; it enforced occupational safety and health laws effectively.

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China →     Macau →     Tibet

China (Includes Hong Kong, Macau, and Tibet) – Macau

Section 7. Worker Rights

e. Acceptable Conditions of Work

Local labor laws establish the general principle of fair wages and mandate compliance with wage agreements. The SAR does not calculate an official poverty line. The law provides for a 48-hour workweek, an eight-hour workday, paid overtime, annual leave, and medical and maternity care. The law provides for a 24-hour rest period each week. All workers employed in the SAR, whether under a term contract or an indefinite contract, are entitled to such benefits as specified working hours, weekly leave, statutory holidays, annual leave, and sick leave. It was not clear whether penalties were sufficient to deter violations. The law requires that employers provide a safe working environment, and the LAB sets industry-appropriate occupational safety and health standards. The law prohibits excessive overtime but permits legal overtime (a maximum of eight hours and irrespective of workers’ consent) in force majeure cases or in response to external shocks, at the discretion of the employer.

All workers, including migrants, have access to the courts in cases in which an employee is unlawfully dismissed, an employer fails to pay compensation, or a worker believes his or her legitimate interests were violated. If an employer dismisses staff “without just cause,” the employer must provide economic compensation indexed to an employee’s length of service.

The LAB provides assistance and legal advice to workers upon request, and cases of labor-related malpractice are referred to the LAB.

The LAB enforced occupational safety and health regulations, and failure to correct infractions could lead to prosecution. The number of labor inspectors was adequate to enforce compliance.

The law allows workers to remove themselves from hazardous conditions without jeopardy to their employment.

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China →     Hong Kong →     Tibet

China (Includes Hong Kong, Macau, and Tibet) – Tibet

Honduras

Section 7. Worker Rights

e. Acceptable Conditions of Work

There are 42 categories of monthly minimum wages, based on the industry and the size of a company’s workforce; the minimum average is above the poverty line. The law does not cover domestic workers.

The law applies equally to citizens and foreigners, regardless of gender, and prescribes a maximum eight-hour shift per day for most workers, a 44-hour workweek, and at least one 24-hour rest period for every six days of work. It also provides for paid national holidays and annual leave. The law requires overtime pay, bans excessive compulsory overtime, limits overtime to four hours a day for a maximum workday of 12 hours, and prohibits the practice of requiring workers to complete work quotas before leaving their place of employment. The law does not protect domestic workers effectively. In many industries, including agriculture, cleaning, and security, employers did not respect maternity rights or pay minimum wage, overtime, or vacation. In these sectors employers frequently paid workers for the standard 44-hour workweek no matter how many additional hours they worked. In the agricultural sector, companies frequently paid less than minimum wage to most workers, with less than 1 percent of agricultural workers receiving the minimum wage. In security and domestic service sectors, workers were frequently forced to work more than 60 hours per week but paid only for 44 hours. Through August the STSS recovered 761 million lempiras ($30 million) in overtime payments for 139,135 workers.

Occupational safety and health standards were current but not effectively enforced. By law workers may remove themselves from situations that endanger their health or safety without jeopardizing continued employment. Under the new inspection law, the STSS has the authority temporarily to shut down workplaces where there is an imminent danger of fatalities. There were not enough trained inspectors, however, to deter violations sufficiently.

The STSS is responsible for enforcing the national minimum wage, hours of work, and occupational health and safety laws, but it did so inconsistently and ineffectively. Civil society continued to raise issues of minimum wage violations, highlighting agricultural companies in the south as frequent violators. The 2017 inspection law permits fines, and while the monetary penalty is sufficient to deter violations, the failure of the government to collect those fines facilitated continued labor code violations. As part of the monitoring and action plan agreed between Honduras and a foreign government, the government increased the STSS budget to approximately 79.4 million lempiras (three million dollars). As of September inspectors conducted 14,039 total inspections, including 1,345 unannounced inspections. As of November the STSS had an insufficient number of inspectors to enforce the law effectively.

The STSS reported a significant reduction in company obstruction of labor inspectors, with 226 cases through September. Because labor inspectors continued to be concentrated in Tegucigalpa and San Pedro Sula, full labor inspections and follow-up visits to confirm compliance were far less frequent in other parts of the country. Many inspectors asked workers to provide them with transportation so that they could conduct inspections, since the STSS did not have sufficient resources to pay for travel to worksites. Credible allegations of corruption in the Secretariat of Labor continued.

Authorities did not effectively enforce worker safety standards, particularly in the construction, garment assembly, and agricultural sectors, as well as in the informal economy. Employers rarely paid the minimum wage in the agricultural sector and paid it inconsistently in other sectors. Employers frequently penalized agricultural workers for taking legally authorized days off.

While all formal workers are entitled to social security, there were reports that both public- and private-sector employers failed to pay into the social security system. The STSS may levy a fine against companies that fail to pay social security obligations, but the amount was not sufficient to deter violations.

There continued to be reports of violations of occupational health and safety law affecting the approximately 5,000 persons who made a living by diving for seafood such as lobster, conch, and sea cucumber, most from the Miskito indigenous community and other ethnic minority groups in Gracias a Dios Department. The violations included lack of access to appropriate safety equipment. Through September the STSS inspected 15 fishing boats.

Mexico

Section 7. Worker Rights

e. Acceptable Conditions of Work

The tripartite National Minimum Wage Commission is responsible for establishing minimum salaries. In December 2018 it unanimously approved the largest general minimum wage increase (16 percent) in 23 years and a doubling of the minimum wage in the economic zone along the border with the United States. Wages had stagnated since 1994, with the country’s minimum wage declining almost 20 percent in real terms. Despite the minimum wage increase, the real general minimum wage fell once again below the official poverty line. Nonetheless, most formal-sector workers received between one and three times the minimum wage. The minimum wage increase set off major strikes by unionized workers in Matamoros, who demanded employers honor contractual employment clauses unique to the city requiring all wages to go up by a factor of any minimum wage increase. According to reports, manufacturing executives in the northern border region colluded with one another to keep wages artificially low. As a result of the strikes in Matamoros, most of the manufacturing plants agreed to worker demands, a general wage increase of 20 percent and a bonus of 32,000 pesos ($1,600).

The federal labor law sets six eight-hour days and 48 hours per week as the legal workweek. Any work in excess of eight hours in a day is considered overtime, for which a worker is to receive double pay. After accumulating nine hours of overtime in a week, a worker earns triple the hourly wage. The law prohibits compulsory overtime. The law provides for eight paid public holidays and one week of paid annual leave after completing one year of work. The law requires employers to observe occupational safety and health regulations, issued jointly by the Secretariat of Labor and the Institute for Social Security. Legally mandated joint management and labor committees set standards and are responsible for overseeing workplace standards in plants and offices. Individual employees or unions may complain directly to inspectors or safety and health officials. By law workers may remove themselves from situations that endanger health or safety without jeopardy to their employment.

The Secretariat of Labor is responsible for enforcing labor laws and inspecting workplaces. Neither the number of labor inspections nor the penalties for violations of labor law were sufficient to secure compliance with labor law. A chemical spill on July 9 by the mining company Grupo Mexico called widespread public attention to that company’s long record of safety and environmental violations, leading President Lopez Obrador to call for talks with union leaders and Grupo Mexico’s ownership to resolve the miners’ grievances. Through its DECLARALAB self-evaluation tool, the secretariat provided technical assistance to almost 4,000 registered workplaces to help them meet occupational safety and health regulations.

According to labor rights NGOs, employers in all sectors sometimes used the illegal “hours bank” approach–requiring long hours when the workload is heavy and cutting hours when it is light–to avoid compensating workers for overtime. This was a common practice in the maquiladora sector, in which employers forced workers to take leave at low moments in the production cycle and obliged them to work in peak seasons, including the Christmas holiday period, without the corresponding triple pay mandated by law for voluntary overtime on national holidays. Additionally, many companies evaded taxes and social security payments by employing workers informally, using subcontracting regimes or by submitting falsified payroll records to the Mexican Social Security Institute. INEGI estimated 57 percent of the workforce was engaged in the informal economy during the year. Of the 30 million informal workers, approximately one-quarter (7.6 million) were employed by formal businesses or organizations, often paid in cash, off the books, to evade taxes and social security payments.

Observers from grassroots labor rights groups, international NGOs, and multinational apparel brands reported that employers in export-oriented supply chains were increasingly using hiring methods that lessened job security. For example, manufacturers commonly hired workers on one- to three-month contracts, and then waited a period of days before rehiring them on another short-term contract, to avoid paying severance and to prevent workers from accruing seniority. This practice violated federal labor law and restricted worker’s rights to freedom of association and collective bargaining. Observers noted it also increased the likelihood of work-related illness and injury. Outsourcing practices made it difficult for workers to identify their legally registered employer, limiting their ability to seek redress of labor grievances.

Citizens hoping to secure temporary, legal employment in the United States and other countries frequently paid recruiters hundreds or thousands of dollars in prohibited fees to secure jobs, and many prospective workers were promised jobs that did not exist. Allegations of abusive and fraudulent recruitment practices rarely were investigated. Although the law requires entities recruiting for overseas employment to register with the Secretariat of Labor, there is no enforcement mechanism, and only a handful of recruiters complied. During the year the secretariat’s National Employment Service began reviewing ways to enforce the foreign recruitment registration law.

The situation of agricultural workers remained particularly precarious, with similar patterns of exploitation throughout the sector. Labor recruiters enticed families to work during harvests with verbal promises of decent wages and a good standard of living. Rather than pay them daily wages once a week, as mandated by law, day laborers had to meet certain harvest quotas to receive the promised wage. Wages may be illegally withheld until the end of the harvest to ensure the workers do not leave, and civil society organizations alleged workers were prohibited from leaving by threats of violence or by nonpayment of wages. Workers had to buy food and other items at the company store at high markups, at times leaving them with no money at the end of the harvest after settling debts. Civil society groups reported families living in inhuman conditions, with inadequate and cramped housing, no access to clean water or bathrooms, insufficient food, and without medical care. With no access to schools or childcare, many workers brought their children to work in the fields. Due to alleged corruption and opacity, in January the federal government eliminated the Program of Care for Agricultural Day Labors, which was intended to reduce the vulnerability of agricultural migrant workers.

News reports indicated there were poor working conditions in some maquiladoras. These included low wages, contentious labor management, long work hours, unjustified dismissals, a lack of social security benefits, unsafe workplaces, and no freedom of association. Many women working in the industry reported suffering some form of abuse. Most maquiladoras hired employees through outsourcing with few benefits.

In April the Senate unanimously approved legislation intended to improve working conditions for the 2.4 million domestic workers, 90 percent of whom were women, by making it possible for them to enroll in social security, thereby gaining access to benefits such as medical services, child care, and maternity leave.

According to data from the Mexican Social Security Institute, in 2018 there were 201,310 workplace accidents, resulting in 303 deaths. In June an accident involving an industrial press in Nuevo Leon caused the partial amputation of four workers’ arms. In August an accident at a silver and gold mine in Oaxaca killed a contractor who was operating heavy machinery.

Vietnam

Section 7. Worker Rights

e. Acceptable Conditions of Work

The minimum wage varies by region. In all regions, the minimum wage exceeds the World Bank official poverty income level.

The law limits overtime to 50 percent of normal working hours per day, 30 hours per month, and 200 hours per year, but it provides for an exception in special cases, with a maximum of 300 overtime hours annually, subject to advance approval by the government after consultations with the VGCL and employer representatives.

The law provides for occupational safety and health standards, describes procedures for persons who are victims of labor accidents and occupational diseases, and delineates the responsibilities of organizations and individuals in the occupational safety and health fields. The law provides for the right of workers to remove themselves from situations that endanger health or safety without jeopardy to their employment. The law protects “labor subleasing,” a pattern of employment, and thus extends protection to part-time and domestic workers.

The Ministry of Labor is the principal labor authority, and it oversees the enforcement of labor law. The Labor Inspections Department is responsible for workplace inspections to confirm compliance with labor laws and occupational safety and health standards. Inspectors may use sanctions, fines, withdrawal of operating licenses or registrations, closures of enterprises, and mandatory training. Inspectors may take immediate measures where they have reason to believe there is an imminent and serious danger to the health or safety of workers, including temporarily suspending operations, although such measures were rare. The ministry acknowledged shortcomings in its labor inspection system and emphasized the number of labor inspectors countrywide was insufficient.

The government did not effectively enforce labor laws, particularly in the informal economy.

Credible reports, including from the ILO-IFC Better Work 2019 Annual Report, indicated factories exceeded legal overtime thresholds and did not meet legal requirements for rest days. The ILO-IFC report stated that, while a majority of factories in the program complied with the daily limit of four hours overtime, 77 percent still failed to meet monthly limits (30 hours) and 69 percent exceeded annual limits (300 hours). In addition, and due to the high prevalence of Sunday work, 40 percent of factories failed to provide at least four days of rest per month to all workers.

Migrant workers, including internal economic migrants, and uncontracted laborers were among the most vulnerable workers, and employers routinely subjected them to hazardous working conditions. Members of ethnic minority groups often worked in the informal economy and, according to the ILO, informal workers typically had low and irregular incomes, endured long working hours, and lacked protection by labor market institutions. Additionally, workers in the informal sector are only eligible to pay into a voluntary social insurance fund covering only retirement and survivors’ allowances. Workers in the formal sector and their employers contribute to a system that covers sickness, maternity, labor accidents, and occupational disease as well as retirement and survivors’ allowances.

On-the-job injuries due to poor health and safety conditions and inadequate employee training remained a problem. In 2018 the government reported 7,997 occupational accidents with 8,229 victims, including 972 fatal incidents with 1,038 deaths. Among the fatal incidents, 578 incidents involved contracted laborers, while 394 incidents involved uncontracted laborers.

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