Labour & Employment 2016


Hola a todos!

This is Augusto Corallo from Mexico City.

Many foreign employers hire employees directly in Mexico or is it necessary to act through a local subsidiary sometimes.

In order to comply with Mexican labour and social security legislation, it is advisable to hire employees through a local subsidiary or a service entity; addition­ally, hiring personnel from a Mexican entity reduces the risk for a foreign employer to exposure, which could lead to the authorities taxing the business as though it were a permanent establishment, independent of the obligation for the foreign employer to be registered at Mexican social security as employer.

 Attorneys’ fees will not be awarded in a resolution of a labour complaint in Mexico.

Employers are able to hire foreign workers in Mexico to make up to the 10 per cent of their personnel; however, regarding hiring of directors, administrators or general managers, up to 100 per cent of such personnel (staff personnel) could be foreign, so there are no hiring limitations for the employer in that regard.