Employment contracts Mexico

What should an employment contract in Mexico include?

Employment contracts in Mexico typically entail the following information:

• Employer and employee contact details, along with their names.
• Tasks and duties assigned to the employee.
• Designated workdays and hours for the employee’s involvement.
• Agreed-upon salary or wages, plus additional benefits.
• Conditions about ending the contract, including expected notice period.
• Commitment to confidentiality and non-disclosure.

Both the employer and employee should carefully examine the terms outlined in the employment agreement before signing.

What types of employment contracts exist in Mexico?

Employment contracts in Mexico can be split into several categories:

1. Employee contract

The employee contracts are further divided into two types of contracts:

• Indefinite-term contract (Contrato por Tiempo Indeterminado): This is the most common type of employment contract in Mexico. It is open-ended and does not have a specified end date. It continues until either the employer or the employee decides to terminate the contract by providing the required notice period.
• Fixed-term contract (Contrato por Tiempo Determinado): This type of contract is used for a specific project, season, or temporary work. It has a predetermined end date, and the employment relationship automatically terminates on that date without the need for notice from either party.

2. Trial period contract (Contrato de Prueba): Also known as a probationary contract, this type of contract is used to assess an employee’s suitability for a specific role during a trial period. The duration of the trial period is typically limited, and both parties can terminate the contract without providing a notice period.

3. Training and apprenticeship contract (Contrato de Capacitación y Adiestramiento): This contract is designed for the purpose of training and skill development. It is used when an employer provides training to an employee with the understanding that the skills gained will be valuable to the employee’s career advancement.

How to hire employees in Mexico?

In Mexico, it’s crucial to establish a formally recognised business entity when hiring employees. This involves going through the official business registration process with the relevant Mexican authorities and obtaining a specific business registration code.

An alternative method is to use a specialised employer of record service provider that specialises in recruitment solutions. Native Teams offers extensive services, like efficiently managing a range of responsibilities such as payroll administration, HR tasks, and tax affairs. We are ready to help you navigate the challenges of obtaining precise and current job-related details in various countries.