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Written Agreements

In Mexico, employment conditions must be set in writing when there is no governing collective agreement. Each party has to retain a copy of the agreement. An employment agreement must include the following minimum information:

• Nationality, sex, marital status, age, tax ID, national registration code, and address of both employee and employer
• Employment duration
• Job description
• Work schedule
• Pay rate and payment schedule
• Employer-provided training
• Other terms and conditions of employment including days off and vacations

The lack of such document does not deprive the worker of the rights that derive from the labor standards and the services provided, since the employer will be charged with the lack of this formality.

Oral Agreements

The Federal Labor Law of Mexico does not dictate conditions for maintaining a valid oral contract, nor does it forbid such contracts. However, the lack of a written contract does not deprive the worker of any rights provided by law.

Implied Agreements

Mexico’s Federal Labor Law contains no specific guidance on implied contracts. However, an employment contract is presumed to exist between any person providing labor services to someone else. If there is no written agreement, the basic statutory rights apply, including paid annual leave of 12 days, right to minimum wage, weekly rest day, 7 paid public holidays, etc.

Employees may work at most six days in any given week. Working hours must not exceed eight hours per day and 48 hours per week. Working hours during the night shift cannot exceed seven hours per shift.

The working day of minors under 16 cannot exceed six hours a day and should be divided into periods not exceeding three hours.

January 1 - New Year’s Day (Año Nuevo); First Monday in February - Constitution Day (Día de la Constitución); Third Monday in March - Birthday of Benito Juarez (President of Mexico from 1858 to 1872); May 1 - Labor Day (Dia del Trabajo); September 16 - Mexican Independence Day (Día de la Independencia); Third Monday in November - Revolution Day (Día de la Revolución); December 25 - Christmas Day (Navidad). There are additional (optional) holidays observed in some and not all states.

The Federal Labor Law of Mexico provides for probationary periods when employees are hired on indefinite term contracts or contracts longer than 180 days. Usually, the probationary period cannot last more than 30 days. However, for employees in managerial, technical, or professional positions, it may last up to 180 days.

At the end of the trial period, if the worker does not satisfy the requirements and knowledge necessary to carry out the work, the employment relationship will be terminated, without responsibility for the employer. The initial training and probationary periods are non-extendable. Employees can be dismissed without notice during probation.

Notice Period

In Mexico, there are no minimum notice period requirements. In cases where employment is being rescinded due to the worker's actions (or lack thereof), Mexico's Labor Law dictates that notice must be given to the employee personally and in writing at the time of dismissal or within five working days. It must state the conduct that led to termination and the date at which said acts were committed.

In cases where the employee is terminating employment due to circumstances related to the employer or workplace, the worker may withdraw from employment within the 30 days following the cause of withdrawal. In such cases, the worker retains the right to receive damages from the employer.

Severance Benefits

Severance benefits are paid if an employee is dismissed due to the business's inability to afford the operation, bankruptcy of the employer, or any other unforeseen circumstances unrelated to the employer. The amount of severance benefits paid is as follows:

• Fixed-term contract of less than one year - wages for half the time of services rendered
• Fixed-term contract of more than one year - six months of wages for the first year and 20 days for each of the following years
• Employment for an indefinite term - 20 days of salary for each year of service
• If the contract is terminated due to physical or mental disability from a non-professional risk - one month's salary plus an additional 12 days of salary for each year of service
• If the contract is terminated due to a reduction of staff caused by the implementation of new machinery or methods of work - four months of salary, plus 20 days for each year of service

Minimum Wage

For the year 2024, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) increased the general daily minimum wage to MXN 248.93 (Mexican pesos). The minimum wage in the North Border Free Zone (ZLFN) is currently MXN 374.89 per day.

Overtime, Holiday & Vacation Pay

Employees are not legally required to work overtime unless there are exceptional circumstances. However, when they do work overtime, their first nine hours of overtime are paid at a rate of 200% of the standard pay rate. Overtime exceeding nine hours is paid at a rate of 300% of the standard pay rate. The Constitution limits overtime to no more than three hours per day for three consecutive days.

Employees working on Sundays are entitled to an additional premium of at least 125% on their standard pay rate. Employees who are required to work on public holidays are entitled to double salary for the service provided, in addition to the salary for mandatory public holiday.

Employees are entitled to a premium of 25% on their standard pay rate for working during their annual leave.

Visas

The following types of visas are available in Mexico:

• Tourist visa - issued to persons visiting Mexico for tourism purposes and is valid for 180 days
• Business visitor visa - issued to persons who wish to carry out business activities in Mexico and is valid for up to 180 days
• Technical visitor visa - issued to persons who visit Mexico to carry out technical activities
• Temporary resident visa - issued to foreign nationals who intend to enter Mexico as temporary residents in order to stay for longer than 180 days and less than four years
• Permanent resident visa - for foreign nationals who intend to enter on the condition of permanent resident stay
• Student visa - issued to students who wish to stay in Mexico for more than 180 days
• Visitor on a cooperation program visa - issued to persons engaged in intergovernmental or international cooperation agreements or programs
• Long-term visitor visa - issued to persons with ample economic solvency, frequent travelers, prominent individuals, spouses of Mexicans, etc. and is valid for up to ten years (This visa does not allow holders to engage in paid activities.)

Work Permits

Foreign nationals planning to work in Mexico for more than 180 days (six months) must obtain a visitor visa with permission to work. A temporary residence visa allows foreign employees to stay in Mexico for up to four years and a permanent residence visa permits staying in the country indefinitely.

Individuals working for and receiving a salary from a foreign company in Mexico for less than 180 days may do so with a visitor visa with permission to work. The following documents must be submitted when applying for this visa:

• Passport with valid photocopies of the pages
• Application form
• Passport size photo
• Consular fees
• Letter of employment
• Current temporary resident or temporary resident student card