
Mexico, located in North America, has a dynamic and diversified economy driven by manufacturing, services, and agriculture. As a key trading partner in the region, Mexico continues to grow while maintaining strong labor laws that protect employee rights and provide clear guidelines for employers.
A trial period may be established for up to 30 days, extendable up to 180 days within the contract framework.
The official maximum working week is 48 hours, typically spread over six days of eight-hour shifts. Many companies condense these hours into five days to provide two days off. Overtime is paid at double the normal wage for the first nine overtime hours per week, and triple for any additional hours.
Employees with one year of service are entitled to a minimum of 6 paid vacation days in their first year. An additional 2 working days are added annually through the fourth year. After five years, employers must add 2 extra vacation days every five years.
Federal subsidies cover sick leave for up to 52 weeks. During sick leave, employees receive 60% of their salary, except in cases of work-related illness, which are compensated at 100%.
Mexico observes 7 public holidays each year, plus an extra holiday on December 1 every six years (to mark the presidential inauguration). Key holidays include:
Employees working on these holidays receive 300% of their normal wage, or 325% if the day falls on a Sunday.
Employers contribute to social security with a maximum annual contribution of MXN 138,479 (this may be higher if occupational risk premiums apply). These contributions apply to employees earning more than MXN 817,782 per year.
There is no obligation to serve a notice period in advance upon dismissal; notice is provided at the moment of dismissal or within 5 days. The notice must include the just causes for dismissal and the date of occurrence. Failure to deliver proper notice is deemed a dismissal without just cause.
If an employee is dismissed without reinstatement, they are entitled to:
If the employer cites a justified cause as defined by law, only the prorated holiday pay, 13th-month bonus, and profit-sharing dividend are payable.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.
Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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