PEO Services in Mexico – Why expanding into Mexico could be right for your business

Find out how to expand your business and hire candidates with PEO services in Mexico

Globalization has played a huge part in making foreign employees accessible to US businesses.  Gone are the days where all employees are located in the same local office and work set hours.  In today’s world of work, your work colleagues may not only sit in a different office, but they might be in another country.  In addition, your workforce will be made up of different classifications of workers.  All this to say that today’s workforce knows no boundaries.

If you are an organization that wants to make use of borderless hiring and engage foreign workers and expand your business to Mexico, using CXC’s PEO services in Mexico can speed up time to hire and reduce risks by ensuring compliant engagement and worker classification.

CXC provides employer of record services to companies that are looking to expand into Mexico, hire employees and manage payroll, alleviating the need to setup your own registered entity, branch or subsidiary in Mexico.

How does it work?

Once you have identified the candidate, PEO services in Mexico will engage with and hire your candidate, ensuring the engagement is in compliance and adherence to the local laws in Mexico. Using PEO services in Mexico means faster engagement and onboarding of your worker, taking just days instead of weeks, thereby reducing your risk and lowering costs.

Why use PEO services in Mexico?

Our Mexico PEO makes it easy to hire workers in Mexico. You can expand your business to Mexico in a short amount of time, without having to go through the process of establishing a legal entity or business registration. Here are some scenarios when you would use PEO services in Mexico:

  • You want to hire experienced and skilled workers in Mexico
  • There is a need to expand your business presence into Mexico
  • You client wants to hire candidates in Mexico
  • You want to test the market in Mexico first, before setting up a registered business
  • Your operations in Mexico may only be for a limited amount of time
  • You have a project that requires foreign workers
  • You are looking for a partner to work with who can enable you to hire skilled talent seamlessly and compliantly
  • You have workers that want to relocate and work in Mexico
  • Your business will change over time and you may require to scale your workforce to meet your business needs
  • You need someone to take care of the vetting and compliance checks
  • You want a partner who can manage your payroll

Are contracts required in Mexico?

Employment contracts in Mexico are required to be provided by the employer to all employees. While they may be in English or Spanish or other languages, the Spanish versions are considered ‘official’ and are noted to be used in cases where any conflict may arise.

Employment contracts must contain:

  • Name, nationality, gender, marital status, and address of the worker and employer
  • Job description
  • In the case of fixed-term contracts, duration of the employment contract must be listed
  • Worksite/s where the employees will work
  • Salary / remuneration and how payments will be made
  • Hours of work
  • Days of leave including holidays, annual leave, and other agreements made between the workers and the employer
  • Training and development programs that employees may undergo for enhancing performance.

Work hours in Mexico

According to Mexican Labor Law (Article 59-62), the legal length of the Mexican workweek depends upon the shift on which an employee renders service. Average working hours in Mexico vary, but at maximum, the Mexican workweek for a full-time employee is 48 hours. The hours for each shift are spread over a six-day workweek that runs from Monday through Saturday.

The FLL provides that employers may utilize the following types of work schedules with its employee:

  • The day shift, which begins at 06:00 hours and ends at 20:00 hours, with a maximum duration of 8 hours per day or 48 hours per week;
  • The night shift, which begins at 20:00 hours on one day and ends at 06:00 hours on the following day, with a maximum duration of 7 hours per day or 42 hours per week; and
  • The mixed shift, which consists of periods of time of the day work shift and of the night work shift, so long as the night period is less than 3 ½  hours, and if such time is exceeded, the shift shall be considered a night shift, and its duration shall be 7 ½ hours per day or 45 hours per week.

The maximum duration of the day will be eight hours during the day, seven hours at night, and seven hours and a half during the mixed shift . Article 59-62 of the Federal Labor Law.

Overtime

Work shifts may be extended due to extraordinary circumstances, but may not exceed 3 hours per day, nor 3 times a week, for a maximum of 9 hours per week.

Pay

Overtime is permitted for a period of three hours per day without exceeding 9 hours per week, and with a compensation of 100% over the regular hourly pay. If overtime exceeds 9 hours, compensation is 200% over the regular hourly pay. There are two conditions to determine if overtime hours are considered double or triple paid hours:

  • The total amount of overtime hours worked during the workweek.
  • The total amount of hours worked during a single day after a regular shift.

Article 66 of the Federal Labor Law

Section XI of Article 123 of the Mexican Constitution

Summary

When setting up business in a new country, it’s imperative to be in compliance with local laws.  Using CXC’s PEO services in Mexico will enable compliant global worker engagement, global worker classification, global worker payroll and ongoing workforce management.

Ensure your workers are paid on time wherever they are.

 

CXC is a global HR outsourcing organization with 30 years of experience in workforce management. Our innovative and cost-effective solutions help companies gain a competitive advantage by improving efficiency while reducing risks.

Contact CXC today to start enabling your future workforce.

Hire anyone, work anywhere, the right way.