How to use an Employer of Record in Mexico？
Mexico has a lot more to offer than sunshine and tequila. The country is the fifteenth largest economy, globally, and the second-largest in Latin America.
To hire employees in Mexico, you’ll have to open a local entity in the country, which takes a significant amount of time and resources. You’ll also have to understand Mexican employment laws and handle every aspect of the employment process — draw employment contracts, offer benefits, pay your workers, and ensure compliance with local regulations.
Alternatively, you could make your life easier and partner with an employer of record (EOR) in Mexico to hire employees in Mexico on your behalf. An employer of record is a service that allows you to recruit top talent abroad and onboard them within a few weeks — without having to waste time and money on establishing a legal entity within the country.
Using an employer of record in Mexico will also ensure that your company remains compliant with the local labor laws, while also providing you and your international employees with a full-scale HR team to handle all the administrative tasks.
Keep reading to learn more about how to use an employer of record in Mexico, so you can start expanding globally today.
What are the benefits of using an employer of record in Mexico?
When you partner with an employer of record in Mexico, the greatest benefit is that you won’t have to go through the time-consuming and expensive process of forming your own legal entity within the country. Plus, you won’t have to find legal counsel within the country or have to worry about outsourcing an HR team.
You’ll also get the added benefit of having a partner that can take care of employment contracts for you, specifying all the legal requirements expected from both sides. This is especially important when taking on international hires because different countries, Mexico included, have different legislation regarding employment contracts.
An employment contract is a critical component because it acts as the foundation for the employer-employee relationship. It defines an employee’s role and responsibilities and contains essential details such as working hours, compensation and benefits, termination clauses and procedures, and more. Typically, while hiring employees in Mexico, the employment contract should include the following details：
- The full identity of the employer, including place of work (if applicable)
- Salary or wages
- Benefits and compensation regarding paid time off, vacation duration, bonuses, etc.
- Scheduling, as in the expected hours the employee will be expected to fulfill each workweek
- Duration of employment, which can be fixed or not
- The employee’s specific role and general responsibilities
- Collective bargaining agreements (CBAs) if applicable
- Start date of the employment period
- Notice period and procedures for termination
It should be noted that employment contracts are mandatory in Mexico. There is no “at will” employment, and every employee must enter into an individual agreement with the employer, setting out the terms and conditions of the specified role.
How much does it cost to use an EOR in Mexico?
Generally speaking, actual costs vary depending on the kind of services your company needs and the location and number of workers you want to hire.
EOR services tend to come with two types of pricing: flat-fee structures and percentage structures.
Linkeazi offers a fee based on a percentage model for Mexico — while still offering the highest and strictest standards in compliance and security.
Get started with an EOR in Mexico
开始在墨西哥进行 EOR
To successfully hire and onboard top talent in Mexico, it’s crucial to rely on a reliable EOR that can do the heavy lifting for you. Your EOR partner can help you hire internationally without having to physically expand your operations into Mexico — which would require a lot of time, money, and resources.
Global employment doesn’t have to be a complicated and time-consuming affair. Linkeazi’s global employment services can help you efficiently hire, onboard, and pay your workers in Mexico, and beyond. Our global HR platform can manage all your administrative needs while ensuring that you remain compliant with Mexico’s labor laws at all times. Remote can offer you:
Do you have questions about how to offer benefits to your employees in Mexico? Are you interested in offering a benefit not listed here?
About us
Linkeazi is a comprehensive human resources services firm specializing in talent recruitment, talent management, compensation optimization, and outsourcing solutions. Our mission is to connect talent with opportunities, providing organizations and businesses with holistic human resources solutions to help them succeed in a competitive market. We have a deep understanding of the Mexican market and a wealth of talent resources and industry insights. We have also successfully recruited exceptional talent to meet the needs of a number of auto parts companies.
Linkeazi can help. Whether you require outstanding talent, optimized compensation strategies, or wish to outsource your human resources management, Linkeazi is your ideal partner. We own our own local legal entity in Mexico, which means we can provide your employees in Mexico with a first-class experience no matter where your business is headquartered. We eagerly anticipate providing top-notch talent services, compensation management consultancy, and outsourcing solutions to jointly create a brighter professional future.
Learn more about how you can hire international employees quickly and compliantly in Mexico. If you’re ready to start onboarding employees in Mexico, Reach out to us today ！