Mexico
Fixed term contracts are allowed for temporary or seasonal work. Training contracts are permitted for up to 3 months. Fixed or training contracts that are terminated before their end date are owed severance. Fixed term contracts cannot be renewed. Once a fixed term contract is renewed, it becomes indefinite. A training contract may be renewed either as a fixed term or indefinite contract.
Mexico currently recognizes 7 paid public holidays. Workers who work on a holiday are entitled to double-pay.
After one year of service, Workers are entitled to paid vacation as follows: After 1 year: 12 days After 2 years: 14 days After 3 years: 16 days After 4 years: 18 days After 5 years: 20 days From the sixth (6) year on, the vacation entitlement will increase by two days every five years. In addition to regular salary and benefits, Workers are entitled to a vacation premium during the vacation period equal to 25% of the Worker’s base salary.
Indefinite contracts and fixed term contracts longer than 180 days may have a probationary period, which should not exceed 30 days. Probationary periods make no changes to notice and severance requirements. Longer probationary periods up to 180 days can be agreed upon for managerial, or specialized professions.
Workers are entitled to 52 weeks of paid sick leave when certified by the Instituto Mexicano del Seguro Social (“IMSS”). During that period, employers are only liable for the retirement portion of social security contributions. If the Worker remains incapacitated at the end of that period, the contributions cease and the employment relationship terminates.
Standard working hours are typically 8 hours per day, 6 days per week (Monday through Saturday). Workers must be provided with a paid rest period of at least 1/2 hour during their work shift. Night shift work hours are limited to 7 hours per day, or 42 hours per week in a 6 day workweek.
Workers are entitled to 200% of their ordinary rate for overtime work in excess of 3 hours per day not exceeding 9 hours per week. After 9 hours of overtime, Workers are entitled to 300% of their ordinary rate.
Each December, Workers will receive a payment equal to 15 days of their normal wage as a Christmas bonus.
Just cause is required and must be communicated to the Worker and/or the Labor Board or the termination will be deemed unjustified. A Worker terminated without just cause may be entitled to reinstatement or severance. The parties may terminate the employment contract by mutual agreement, generally with some form of compensation to the Worker.
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