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.
Are you an employer in Mexico? If so, then this blog post is essential reading for you. The Mexican government’s labor reform legislation has drastically changed how employers must now address their staffing and workplace policies.
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.
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.”