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SALARY PAYMENT IN Mexican Peso (MXN, $)
CONTRACT LANGUAGES Spanish / English
PAYROLL TAX 36.69% – 43.72%
PAYROLL CYCLE Bi-weekly
TIME TO HIRE 12 hours
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Mexico
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.
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.
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:
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.
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.
During the probationary period the employer is allowed to terminate the contracts without notice.
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.
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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71 Robinson Road #13-153
068895, Singapore
+65 3105 1170
Skalitzer Str. 85/86
10997, Berlin
+49 30 3119 9653
1700 S. Lamar Blvd Suite 338
Austin, Texas 78704
+1 (737) 265-6065
See more locations
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