Hiring in Mexico

Mexico is an attractive country for hiring skilled professionals in engineering, IT, and other high-tech fields. A growing technology hub, it has seen a dramatic increase in graduates with engineering degrees in recent years, while labor costs have remained relatively low. Its close proximity to the United States gives Mexican employees good cultural alignment with teammates from that region, and a high number of Mexican professionals have strong English proficiency. Before hiring in this rich region, understanding its complex labor laws is essential.

Employment relationships in Mexico are governed by such laws as the Federal Labor Law (Ley Federal del Trabajo), which sets standards on contracts, wages, working hours, social security, and employee protections. In addition to federal regulations, individual contracts and collective bargaining agreements may also apply.

Additionally, Mexican law prohibits the use of subcontracting for core business activities, following the 2021 labor reform (Reforma en Materia de Subcontratación). Employers must directly hire employees who perform essential functions. Companies engaging subcontractors must ensure these are registered with the Ministry of Labor (STPS).

Because of the complexity of employment laws in Mexico, compliant employment contracts are an essential business need. With Safeguard Global as your partner, you can employ workers in Mexico with confidence, knowing that every contract for every worker meets all requirements. We can also provide you with guidance about cultural norms and hiring best practices and keep you up-to-date with employment regulations as they change.

Relying on an employer of record (EOR) in Mexico

An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in Mexico. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with Mexico’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in Mexico. 

The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization.

Visit our employer of record services page to learn how we can help you meet your international employment needs in Mexico.