Mexican labor contracts are regulated by the Federal Labor Law (LFT). This law states that, in Mexico, employment contracts must be clear, definable and in writing. Specifically, it defines that an individual labor contract is when a person consents to perform work for someone else for an agreed remuneration, time and accordingly to agreed conditions.
Mexican Labour Contracts
In Mexico, there exists different employment contracts depending on the type of labor relationship, which is briefly outlined below:
Measurable Contract
This type of labor contract is used when the person being engaged to complete the work, is being engaged for a specific and definable deliverable and/or set period of time.
Indefinite-term Contract
This type of labor contract is the most commonly used when employing a person full-time without a time of deliverable restriction. Specifically, this type of contract must be used when a working relationship exceeds 180 days and in this case, a trial period of no more than 30 days can be established within the contract framework, which may be extended up to and including 180 days.
Initial Training or Trial Period
This is the type of contract is used when engaging a worker for an initial period of training, specifically the worker is consenting to perform work in order to acquire the necessary skills and knowledge prior to seeking full-time employment. This type of contract has a maximum duration of one month, which may be extended to six months on a case by case basis. When the trial period and/or the initial training is concluded and the relationship persists, the contract is then automatically considered indefinite unless otherwise advised by either party.
Seasonal work
Seasonal work encompasses a working relationship for discontinuous work and/or when the required services are for fixed and periodic duration of a discontinuous nature. This includes cases of seasonal activities and/or activities that do not require work all week, month or yea
Mexican Working Day
According to the LFT, a Mexican working day consists of:
Daytime between 6am and 8pm. The maximum duration is eight hours.
Night time between 8pm and 6am hours. The maximum duration is seven hours.
Mixed day: it includes periods of day and night hours. As long as the night hours are less than three and a half hours. The maximum duration is seven and a half hours.
Termination of Mexican Labor Contract
It is important to know the different causes for termination of a labour contract.
The causes include the following:
Mutual consent between the parties
Death of the worker or employer
Completion of the work or expiration of the term or capital investment
Mental or physical disability or inability manifest by worker
Depletion of the resource in an extractive industry
Ongoing or legally declared bankruptcy.
It is vital that both the company and its workers understand their labor rights and responsibilities. The employment contracts in Mexico require knowledge of the LFT, therefore it is recommended that parties seek expert advice when drafting any type of labor contracts or agreements.
Biz Latin Hub can help you find a good corporate attorney in Mexico
At Biz Latin Hub, our multilingual team of corporate attorneys have deep knowledge of corporate legal requirements and is ready to help you enter the Mexican market while staying on good terms with local authorities. With our complete portfolio of back-office solutions, commercial representations, and tax advisory services, we can be your single point of contact to ensure the success of your business venture in Mexico or in any of the other 15 countries across Latin America and the Caribbean where we are present.
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As informações fornecidas aqui não devem ser interpretadas como orientação ou aconselhamento formal. Consulte um profissional para sua situação específica. As informações fornecidas são apenas para fins informativos e podem não abranger todas as leis, padrões e práticas recomendadas pertinentes. O cenário regulatório está em constante evolução; as informações mencionadas podem estar desatualizadas e/ou podem sofrer alterações. As interpretações apresentadas não são oficiais. Algumas seções baseiam-se nas interpretações ou pontos de vista de autoridades relevantes, mas não podemos garantir que essas perspectivas serão apoiadas em todos os ambientes profissionais.
La información que aquí se ofrece no debe interpretarse como orientación o asesoramiento formal. Por favor, consulte a un profesional para su situación específica. La información proporcionada tiene únicamente fines informativos y es posible que no recoja todas las leyes, normas y mejores prácticas pertinentes. El panorama normativo está en continua evolución; la información mencionada puede estar obsoleta y/o sufrir cambios. Las interpretaciones presentadas no son oficiales. Algunas secciones se basan en las interpretaciones o puntos de vista de las autoridades pertinentes, pero no podemos garantizar que estas perspectivas se respalden en todos los entornos profesionales.
The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
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Legal Team Mexico is the Biz Latin Hub leading experts on doing business in Mexico The Team writes on the news, doing business, law, and changing regulations. The team are experts in corporate law, Administrative law, Employment law, Immigration law and legal advisory services. Read more about them here. You can contact Legal Team Mexico via our "contact us page".
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