Employer of Record Mexico

• Quick, flexible, and easy entry into Mexico in compliance with local employment laws
• Complete control over business development with your own team
• Good option for building up, managing, and supporting your distributors and key accounts by directly observing local developments and adjusting the strategy whenever necessary
• Using our comprehensive recruitment experience for international clients, we can form a local team that fits your corporate culture.
• Focusing on your core business instead of dealing with the time-consuming and complex local administrative tasks
• Allowing for easy market exit if necessary
• Integrating your employees into our team through motivational events and special meetings

Mexico’s recent alliances and enhanced trade ties with its significant neighbor, the United States, not only spur economic growth and inclusivity but also cultivate an ideal landscape for remote employment. This dynamic facilitates several advantages for employers, including the establishment of a conducive work environment, streamlined payroll arrangements, and clear statutory benefits for employees

Federal laws in Mexico mandate written contracts between individuals and their employers. While there are no specific statutory language requirements for employment contracts, Spanish is commonly used and recommended. Additionally, if an employee is hired with a probationary period, it must be clearly defined within the contract.

In Mexico, the length of the probationary period varies depending on the type of employment contract and is stipulated within the contract itself. For contracts intended for an indefinite period or those lasting more than 180 days, a probation period of 90 days or three months is frequently observed as standard practice.

Typically, Mexican offices operate between 8 am and 6 pm from Monday to Friday, although this may differ based on the industry and specific company policies. While some companies still provide extended lunch breaks, or ‘siestas,’ lasting around one hour, it’s not the norm.
Mexican labor laws restrict working hours to 11 per day and 50 per week, with a mandatory 24-hour period off each week. If these limits are surpassed, employers are required to provide overtime pay at a rate of 1.5 times the regular pay.

In Mexico, the minimum wage varies by state. Employers are mandated to provide a Christmas bonus, known as aguinaldo, which typically ranges from half a month to a full month’s salary. Additionally, employers have the option to offer supplementary benefits packages as part of their efforts to attract and retain talent.

The initial step for either working in Mexico or hiring talent from abroad is obtaining a Mexico work visa. Those wishing to work in Mexico must initially secure a residency permit, which does not inherently include work privileges. After obtaining residency, individuals must then seek approval for work privileges, also referred to as remunerated activities, in order to legally work within the country.

In Mexico, there are numerous nationally and regionally acknowledged public holidays. Employees required to work on these occasions typically receive overtime pay as part of their entitlements.

• New Year’s Day
• Constitution Day
• Benito Juárez’s Birthday Memorial
• Labor Day / May Day
• Independence Day
• Revolution Day Memorial
• Christmas Day

Following one year of employment, workers in Mexico are granted 12 days of vacation leave. This entitlement rises by two days for each additional year up to four years of service, and thereafter increases by two days for every five years of employment. However, numerous employers opt to provide more generous vacation allowances, often providing senior employees with 15 days or more annually.

Typically, employees can arrange sick leave with their employer, with compensation determined by their specific agreement. For non-work-related illnesses, employees can receive government-funded compensation equivalent to 60% of their wages upon presenting a doctor’s note. In cases of work-related illnesses, employees are entitled to 100% of their wages.

Maternity Leave: Mothers in Mexico are entitled to six weeks of paid maternity leave, three weeks before and three weeks after their due date, totaling 12 weeks. Fathers, on the other hand, are granted five days of paid leave. These payments are covered by the government and are capped at 2500% of the minimum wage. Additionally, many employers supplement these benefits with additional payments as part of their benefits packages.

In Mexico, termination of employment must be based on specific grounds. If an employee is terminated without cause, they are entitled to either reinstatement or severance pay, which includes:

• 90 days of their daily total compensation
• 20 days of their daily total compensation for each year of service
• 12 days of base salary for each year of service, along with any accrued salaries and benefits such as paid vacation and Christmas bonuses.