Labor law
in Mexico.

SALARY PAYMENT IN Mexican Peso (MXN, $)

CONTRACT LANGUAGES Spanish / English

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Mexico

Labor law in Mexico – Overview

If you’re hiring in Mexico, it is crucial to understand the labor laws to avoid issues with the Mexican authorities. This is especially true because labor laws in Mexico are heavily regulated and there are more nuances and provisions for Mexican employees than for those in the US.

Mexico is the first country to recognize and make provisions for labor laws in its constitution.

Notice period laws in Mexico

Dismissals in Mexico

In Mexico, employees do not need to offer a notice time when they want to quit. Employees can resign immediately without penalty under the Mexican Federal Labor Laws.

Severance laws in Mexico

Employees in Mexico are entitled to severance pay if fired without a cause. Legal termination is only possible if the employee engaged in illegal behavior, for example, dishonesty in the workplace or acts of violence or harassment in the workplace.

If you fire an employee without cause, under the Mexican Federal Labor Laws the employee is entitled to:

a percentage of their annual bonus based on the number of months they worked that year;
if seniority, then they get a seniority subsidy;
payment for outstanding vacations;
20 days of pay for every year worked;
three months’ worth of salary payments;
payment for all hours they have already worked.

Hiring in Mexico, Made Easy

Your business can easily hire employees in Mexico without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What are the most relevant legal documents related to employment law in Mexico?

The most relevant legal document related to employment law in Mexico is the Federal Labor Law document. Established in 1932, the Federal Labor Law of Mexico has been built upon and reformed to include the most up-to-date labor laws.

Can I terminate an employee during their probationary period in Mexico? How much notice do I need to give?

During the probationary period the employer is allowed to terminate the contracts without notice.

Can the employee terminate employment during their probationary period in Mexico? How much notice do they need to give?

In Mexico, employees do not need to offer a notice time when they want to quit. Therefore, yes, the employee can terminate the contract during the probationary period without notice without incurring legal liability.

After the probationary period, what is the process to terminate employment in Mexico?

To terminate an employee in Mexico there must be legal just cause to do so. Just causes include if the employee engages in workplace dishonesty, violence, and/or harassment are some examples of situations it is permissible to terminate an employment contract.

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