Employment Law Overview in Mexico

Flagpole and Mexico City Metropolitan Cathedral

Mexico, known for its vibrant culture and thriving economy, has a comprehensive framework of labor laws that significantly influence the nation’s working conditions and policies. Understanding these laws is crucial for businesses and employees operating in Mexico, especially in the context of international contracts.

Mexico’s Labor Law

There are two categories that govern Mexico’s labor law – Federal Labor Law and Social Security Law. The labor law defines the rules and regulations pertaining to labor courts, labor unions, and labor relations. It also enlists the total wages for specific and general work that may vary according to the economic region.

Mexico’s New Labor Law Amendment On Outsourcing

In April of 2021, the Mexican Federal Government amended several provisions of the Federal Labor Law. The goal of these amendments was to essentially prohibit employer subcontracting or “outsourcing,” which the law defines as “when a natural or legal person provides or makes available their own workers for the benefit of another.”