27 March 2013: Mexico Employment Practices

Payroll and Accounting Partner Services –

Mexican Laws and Regulations –

A note has been written by our HR, Payroll and Accounting partners in Mexico, introducing their services. It begins:

“We know there is a lot of information here, and we know you are not looking to be experts in Mexican Labor matters as it might take much time and not be worthwhile for a small volume of staff compared to the staff contracted in HQ.

That’s why we offer Human Resources Administration services, so our customers can have their operation in Mexico assisted by HR Experts who will work shoulder to shoulder with you to keep your company aligned to Mexican Laws and rules, and beyond this, to have the staff focused on their real job.”

The note provides detail under a number of headings which include:

• Maternity Leave in Mexico
• Paternity Leave in Mexico
• About The Family and Medical act in Mexico (FML)
• Sexually Transmitted Disease (STD) Insurance in Mexico: Provided by Mexican Social Security
• About Long Term Disability (LTD) Insurance in Mexico: Covered by Mexican Social Security
• Laws which govern Payroll and Human Resources in Mexico
• Dependencies which review the development of labor matters in Mexico – Federal
• Background checks can be done – drug screen testing?
• How many established holidays are there in Mexico?
• Holiday: Official days of Holidays, Non-official days of Holidays:

LEGALLY MANDATED BENEFITS:

• Vacation days
• Hours of Work normal time and overtime
• How much vacation is normal?
• Christmas bonus
• End of service indemnity
• Trial period contract.
• Fixed length contract.
• Undefined length contract.
• Requirements for releasing someone?
• Probationary period when someone starts?
• How frequently people receive pay in Mexico?  Weekly, bi-weekly, monthly?
• Quoting monthly costs – how many working hours per month and per week are included?
• Work on an hourly basis as a contractor – do we pay just for hours worked, or do we pay on a monthly basis like a salary?

The final heading leads to an important statement:

“Mexico has approved last year a new labor law which established hourly basis but, unfortunately, Social Security charges are based monthly and there do not exist clear rules to pay on hourly basis yet.

We suggest paying on a monthly basis like a salary for the moment.”

To view or download the detailed note under the above headings please click here*.

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John Tinsley