Go Back <<
 

Employers Hiring Employees in Mexico

This is only a brief explanation of what you should expect when hiring employees in Mexico, and will need to be explained, outlined, and understood in much greater detail as you move forward.

In Mexico all labor laws are on the side of the employee. Employee or service contracts are an absolute must before employing anyone for anything!

Before hiring employees your corporation must first be registered in "Seguro Social". The Seguro Social agency provides medical benefits, subsidized housing and retirement. IMMS, "Social Security", payments must be made on or by the fifteenth of each month.

Employees also receive annual vacation pay of six days for the first year of employment, eight for the second anniversary, ten for the third and twelve days for the fourth year. Succeeding years are incremented by two days every five years. Additional employee benefits are a X-Mas bonus totaling fifteen days of salary.

Severance benefits include 90 days for completing the first year of employment plus 20 days for each year of employment beyond the first year. Included in the severance package is an antiquity bonus: Twelve days for each year, after the first anniversary of employment, multiplied by twice the minimum wage.

If an employee is consistently late, absent, disrespectful, irresponsible, dishonest or incapable of completing required tasks you can terminate that employee (with sufficient documentation) for considerably less.

Employees also receive a profitability bonus that amounts to ten percent of company profits. Most employers do not pay that amount. The company and employees can agree, in writing, to a bonus system that substitutes for the ten percent of profitability. Another corporate responsibility is to pay Hacienda (IRS) 34% of profitability.

Employee contracts are a must to safeguard the employer. The contracts can outline hours, responsibilities, salaries and bonus incentives if they differ from the 10% stipulated by law. If the contract is for seasonal work, the season length is specified and termination stipulated.

This is only a brief explanation of what you should expect when hiring employees in Mexico, and will need to be explained, outlined, and understood in much greater detail as you move forward.

 

Go Back <<

Home| About Us| Immigration Services| Real Estate Services| Corporate| Business Services| Research| Contact Us
RIS Solutions | Site Map | English | Español | Playa del Carmen and The Riviera Maya, Mexico
Reliable Investment Solutions.com Copyright © 2008 of Reliable Project Solutions, SA de CV