When operating a business in any country, there are certain labour laws, regulations and tax requirements that need to be adhered to. When you expand your business, it can be difficult to navigate the complexities, so many companies turn to outsourcing companies to handle their human resources, immigration and payroll services. Mexico has been recognised as an emerging economic powerhouse, and is a great place to do business. However, there are a few things you need to know before expanding.
Here at Payroll Worldwide, we provide human resources (HR) and fully managed payroll services to businesses in Latin America and those wishing to expand. We can deliver our services to a professional degree, providing all employees who move over with a concierge service to get them settled. If you want to learn more about labour law in Mexico, here are the basics.
Salary and Wages
In Mexico, the National Commission on Minimum Wages is responsible for setting the minimum wage. The general daily wage, on average, is 141.7 pesos (in 2021), which is around £5. The Northern Border strip receives a higher minimum wage at 213.39 pesos (£7.64). However, jobs in Mexico are usually above the minimum wage, especially those in the industrial and manufacturing sector. Of course, how much you pay your employees is down to you, and all employees will need to be put onto payroll.
Here at Payroll Worldwide, we can ensure that all employees are being paid accurately and on time, as well as being awarded the correct bonuses and having their sick pay and holiday pay calculated. Our payroll team can implement cost-effective payroll processing systems to help run your business more efficiently, saving you time and money. To find out more about our services, please visit us on our website here.
Hiring Foreign Employees
If you operate in Mexico, you can hire foreign employees as long as they have been authorised by the National Institute of Migration. Mexico has a nine-to-one foreign employee ratio requirement, meaning that Mexicans must make up 90% of a company’s workforce. However, there are exceptions to this rule, as if there are no Mexican professionals directly available, foreign employees may be hired to utilise their expertise. High-level foreign officers are also exempt from this rule.
There are various visa’s that a foreign employee may need to obtain in order to work in Mexico. Our HR team can help your employees through the immigration process, sorting visa applications and work permits to ensure all legalities are taken care of.
Outsourcing and Employment Contracts
Outsourcing labour schemes are carefully regulated to avoid abusive practices being used against employees. Valid agreements in Mexico are made of three elements; the agreement should not cover all activities carried out in a workplace, it shall be justified by its specialist nature, and it cannot include identical tasks performed by any employees of the beneficiary (a company that supervises the contracted work). You can read more about outsourcing here.
Labour law in Mexico also states that employers have an overriding responsibility to have each employee agreement in writing. Employers may face fines if they don’t have records; they must include information such as the employee’s name, place of work and working hours. The duration of an agreement is indefinite, and temporary contracts are allowed under specific circumstances. You can discover more about working hours in Mexico here.
To find out more about our services here at Payroll Worldwide, please give us a call on 07469 892524. Alternatively, you can fill out our online form here.