A Mexican company can hire Mexican and foreign employees. In the second case, the company should be previously registered with the National Migration Institute (INM) and the employee may be hired after processing a work permit.

Based on the category of the worker to be hired, the Federal Labor Law imposes hiring limits (favoring employment sources for Mexican personnel) that should be assessed in each case. However, this limit is not established for directors or managers.

Recently reformed outsourcing is common, allowing companies not to hire its employees directly, but rather through specialist companies.

In Mexico, workers enjoy a series of rights, including:

• End-of-year bonus: Amount that must be paid before December 20 each year, equivalent to a minimum of 15 days’ salary;

• Vacation bonus: Extra amount that must be paid to the worker during the vacation requested, that may not be less than 25% of the ordinary salary he receives during this period of time;

• Employee Profit Sharing (PTU): Right to receive a share of the profits obtained by the employer in the previous year. Newly incorporated companies are not bound to pay this amount during the first year of its operation and it does not correspond to directors or managers. It must be paid no later than May 30 of each year.

Our firm’s professionals can provide you with assistance in all personnel management processes from all points of view, from the drawing up of agreements to assisting with their management, in the search for tax strategies to reduce the impact resulting from tax payments, managing the outsourcing regime, managing dismissals, etc.