HR Solutions & Employee Relations in Mexico with IRIS
IRIS HR consulting has experience helping businesses grow in Mexico. Without expert guidance, it can otherwise be risky and costly to leave local laws and legislation open to interpretation. For a scalable, compliant operation, IRIS can manage your HR in Mexico to help you hire, recruit, and pay staff overseas in new, unfamiliar countries. As a popular destination for businesses, IRIS can navigate local barriers – from culture to compliance – to arrive at a rewarding opportunity for your business to thrive in this exciting marketplace.
Take your business to Mexico with IRIS HR Consultancy.
A Guide to Employing Staff in Mexico
Everything you need to know about the employment laws and compliance requirements in this country
Global Expansion in Mexico
Mexico is a promising market, known to many for its advantageous geographic settings that connects with both the North and South of the Americas. Its open borders enable the neighbouring economies to thrive and interact with one another. With a lower currency, and a competitive and available labor force, Mexico has been known to attract key foreign investment.
As Mexico is a culture familiar with the global world around it, this makes the domestic consumer market favourable and receptive to foreign investment. Its attractive marketplace combined with its rewarding schemes for first-time entrants makes Mexico an ideal country to strengthen your operation.
A Key Gateway
Aside from its wealth of benefits, including the second largest economy in Latin America and its young population, Mexico is strategically neighboured to enjoy access to, and mitigate partnerships between, the North and South Americas. Mexico enjoys one of the larger networks of tax and trade treaties around the world, which, when combined with its consistent fiscal and economic policies, means this country boasts a considerably “open” economy altogether.
Establishing your business in Mexico
Embarking on a global expansion is a strategic move to gain extra value from exciting foreign markets, which are constantly evolving and full of opportunity. But the international stage isn’t always easy to navigate.
For example, employment in Mexico is largely regulated by the Federal Labour Law (FLL), which was first established in 1970, along with the Mexican Constitution (1917). Together, compliance is strictly regulated under these guiding pieces of legislation.
Before establishing your operation in this Mexican market, you must ensure compliance with employment law.
Employment laws in Mexico
When first expanding your business into Mexico, navigating local laws, legislation and rules of employment is no mean feat, especially if you’re unfamiliar with its policies. Throughout the Americas, these laws are almost never universal. Rather, employment is dynamic and reflects the countries social, economic and cultural opportunities.
Did you know?
All employees, whether temporary or not, will require permits for employment.
Hiring & recruitment in Mexico
When getting your first hire overseas, you will need to negotiate terms of employment. But that requires local knowledge, strict compliance, and an understanding of what to include in an offer.
In Mexico, written contracts are mandatory. The particulars of employment should be captured in a contract, outlining the details and conditions of a role and the expectations for a new hire.
Mexican work permits and visas
If your operation is considering Mexico as a market to source talent, then you’ll need to understand the local employment laws. Hiring in Mexico requires an employer to work through the National Institute of Immigration oversees workplace visas.
Those working through a Mexican company will need to also consider a residency visa with a work permit.
In Mexico, there are three types of visas:
- Temporary resident visa
- Permanent resident visa
Employment rights & contracts in Mexico
In all scenarios of employment, work should be captured in a written contract. This includes either those on a temporary status, or on a permanent basis.
The employer must provide conditions of employment, including (but not limited to):
- Date of Employment
- Hours of Work
- Places of Work
- Details of Probationary Window
- Any Benefits and Compensation
Equal Opportunities in Mexico
All working parties in Mexico are protected and guided under the Mexican Constitution, including professional freedoms.
What are the working hours in Mexico?
Typically, the daily working hours include an 8-hour day-time between 6am and 8pm.
Mexican labour law, however, provides that the maximum weekly working hours must not exceed 48 hours weekly, with a rest day per week. Some sectors, such as banking, may provide for a maximum working hours of 40 hours per week, but this will be otherwise expressed in the contract.
Overtime in Mexico
Typically, the first 9 hours of overtime worked (albeit limited to 3 hours daily and no more than three times weekly) should be paid at double the employee’s normal hourly rate.
Overtime is, however, subject to change in certain, often exceptional, circumstance, such as those in Trust positions.
Public Holidays in Mexico
Employees in Mexico are entitled to paid leave on the following 7 official public holidays:
- New Year’s Day – 1 January
- Constitution Day – the first Monday of February
- Benito Juarez Day – the third Monday of March
- Labour Day – 1 May
- Independence Day – 16 September
- Revolution Day – the third Monday of November
- Christmas Day – 25 December
Vacation or Annual Leave
Those with at least one year of service are entitled to 6 days paid holiday leave yearly. This number increases by two days for every subsequent year, which can climb up to 14 days of leave.
Refer to vacation as follows:
|Years of Service||Vacation Entitlement|
|5th – 9th||14 days|
|10th – 14th||16 days|
|15th – 19th||18 days|
|20th – 24th||20 days|
|25th – 29th||22 days|
Sick Leave in Mexico
As mandated by the FFL and Social Security Law (SSL) of 1997, employees are entitled to leave depending on their condition.
- For temporary conditions, a leave period is normally extended up to 52 weeks.
- For more severe, or permanent (yet partial) conditions, employees can leave indefinitely and receive pay via the IMSS (Mexican Social Security Institute Mexican Social Security Institute or Instituto Mexicano del Seguro Social).
- Similar to partial conditions, those with more definite conditions are entitled to the benefit of leave and pay under the IMSS.
Maternity Leave in Mexico
Under Mexican law, pregnant employees are entitled to six weeks’ statutory maternity leave before and after giving birth. Yet, those pregnant or nursing must also follow restrictions, such as no overtime, or working around hazardous materials or environments. During, and throughout, maternity leave the IMSS pays the employee’s basic salary.
Paternity Leave in Mexico
Male employees can access five days of paid leave under paternity law.
We’ve Got You Covered
Deliver your business to new, exciting markets with confidence and compliance.
End of Service
HR in Mexico requires compliance not only during an employee’s service, but also at the end of it. End of service might include severance, termination, redundancy, and leaving packages. Or, for globally mobile companies with teams in foreign markets, this could be repatriation services for those returning from an assignment overseas.
For these more complicated matters, you will need expert HR guidance to navigate Mexican labor laws and remain compliant.
Termination (including Severance) in Mexico
The terms and conditions of termination should be notified and expressed to an employee, including any reasons and circumstances for dismissal. This will typically be reached through mutual consent of both parties.
The social security system in Mexico, which can seem complex, is governed by the Instituto Mexicano del Seguro Social (IMSS). It is funded via contributions from employees, employers and the government and its coverage is vast and reaches across the active and working Mexican population.
Common Supplemental Benefits
Often exclusive to multinational companies, this pension type is private and falls outside of the IMSS.
Typically, employees can access this under group schemes, which overrides the need for medical underwriting. On individual policies, however, there is a more complex process.
Basic Health Care
So long as payments are made under the IMSS, those working in Mexico can expect to receive reasonable (and free) health services through local clinics.
Why Partner With IRIS?
When entering new, exciting countries around the Americas, like Mexico, you will need an employment specialist to navigate parts of Mexican employment laws. Delivering a compliant solution, IRIS can help your business arrive into new marketplaces whilst protecting your workforce – our partners can discover power and protection through us.
Overseas expansions can seem risky to those who dare it alone. Understanding the complexity of a fully compliant solution, IRIS can help businesses reach the Americas.
Our cost-effective, knowledgeable approach to HR in Mexico makes us an ideal partner to commence your overseas plans.