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It is mandatory that employers provide employees with an employment contract that meets local standards. Mexico has five different types of contracts:
A fixed-term contract may be stipulated only when required by the nature of the work to be performed or only when it is intended to temporarily replace another employee.
This includes indeterminate employment relationships or those that exceed 180 days. A trial period may be established, which may not exceed 30 days, for the sole purpose of verifying that the employee meets the requirements and knowledge necessary to perform the work requested. It is important to clarify that the trial period may be extended up to 180 days but only in the case of management positions, managerial positions, and other positions occupying which persons perform management or administrative functions.
In the case of trial periods, which may last for 30 and up to 180 days for administrative, technical, or specialized jobs, if the employer decides not to continue the employment relationship at the end of this period, the employer must consider the opinion of the Training and Productivity Commission to dismiss the employee.
An employment relationship for initial training is considered to exist when workers are obligated to render subordinate services under the direction and command of their employers so that workers acquire the knowledge or skills necessary for the activity for which they will be hired. This type of contract has a maximum duration of three months unless it is to fill a managerial position, in which case it may have a duration of up to six months. When the trial or initial training period is concluded, and the employment relationship continues, it is considered an indeterminate term contract.
When the services required are periodic (e.g., seasonal activities or activities not rendering the services for the entire week/month/year), it must be made clear that workers rendering such services have the same rights and obligations as workers with indefinite-term contracts, in the proportion of the time worked in each period.
An employment contract must include the following:
It is mandatory that employers provide employees with an itemized pay slip weekly or biweekly, as the case may be, breaking down the overtime pay, bonuses, paid vacation, illness, gross salary, net salary, and social security contributions. The monthly pay slip must also show the annual leave accrued. Employees have a right to request copies of their salary and time records breaking down information such as days or hours worked, wage paid weekly or biweekly, and the method of calculating the wage.
Employees have the right to disconnect from work after working hours, which prohibits employers from contacting employees then. To respect the employee’s private life, the working-from-home arrangement must establish availability periods where the employer can contact the employee by phone. Outside of these time slots, the employee is under no obligation to respond to requests from the employer.
All employees who perform subordinate personnel work for an individual or a company and get paid a salary are entitled to participate in the profits of their employers.
Employees not entitled to receive profit-sharing payments are listed below:
Profit sharing (i.e., distribution of profits) must take place within 60 days after the date on which the annual tax return is due before the Tax Administration Service (March 31 for companies; April 30 for individuals).
Profit sharing is 10% of the taxable income generated in the immediately preceding year, based on the information reported by the company in its annual tax return.
Employees are protected from sexual and psychological harassment as well as from sexist behaviour.
A fine for the equivalent of Mex$24,055.00–Mex$481,100.00 shall be imposed on the person who performs acts of sexual harassment or who tolerates or allows acts of sexual harassment or harassment against employees.
Employers are forbidden from discriminating against employees throughout the employment relationship — from the recruitment process to the termination of employment — on the following grounds:
A fine for the equivalent of Mex$24,055–Mex$481,100.00 shall be imposed on the employer who commits any discriminatory act or conduct in the workplace.
All employers are responsible for the processing of their employees’ personal data and must comply with such protection regulations from the moment their employees are hired and during the term of the employment relationship.
Therefore, employers must (1) prepare a privacy notice focused on employees and (2) make it available to their personnel (owners of their personal data) prior to hiring them.
Personal data is any information concerning an identified or identifiable person (name, address, CURP, RFC).
Likewise, in order to comply with certain employer obligations, the employer may have to collect sensitive information, such as the following:
To handle personal data, a company must obtain the express consent of the employee with either a handwritten or an electronic signature, the acknowledgement of the email receipt, or any mechanism proving the delivery of the privacy notice.
The purpose of the notice is to ensure employees (owners of their personal data) know the terms and conditions of the guidelines for the collection, use, exploitation, storage, transfer, disclosure, and disposal of the data.
In the event of improper treatment of personal data, the employer may be subject to a penalty equivalent to 200 to 320,000 times UMA.
Employers or their representatives are forbidden to dismiss a female employee, directly or indirectly coercing her to resign because she is pregnant, has a change of marital status, or is caring for minor children.
Sickness and maternity insurance provides affiliated workers with the necessary medical care during treatment or pregnancy, as well as the economic and in-kind benefits that correspond to them.
During the nursing period of six months, the new mother is entitled to two additional 32-minute rest periods per day to feed the child in an adequate and hygienic place set aside by the employer.
This is an economic benefit (an amount of money) that must be granted to all employees so that they can enjoy their vacations. This payment must be a minimum of 25% of the employee’s monthly salary and is calculated on the salary plus the amount corresponding to the vacations.
All company employees, without exception, must receive this extra amount of money in proportion to the days worked. The Christmas bonus must be granted no later than December 20 of each year and should be for a minimum of 15 days of salary. If employees have been with the company for less than one year, they are granted a proportional part of the time they have been working.
This benefit may be granted in cash only and not in kind or in food vouchers.
The monthly salary, the date the employee started working, and the days missed by the employee (if any) must be considered in order to calculate the amount to be paid for this labour benefit.
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