Mexico has rules in place to protect the rights of local workers over foreign labour. There is a limit on the number of foreigners that companies in Mexico can employ, standing at 10% of the total workforce, excluding senior managers. Additionally, companies employing technical staff can only employ a foreigner if the work cannot be done by a Mexican.
The maximum working week in Mexico is 48 hours over six days, although many companies overlook this. Additionally, some companies run a five-day week, condensing the 48 hours so that employees can have a full weekend off. Overtime rates are double normal pay for the first nine hours each week and triple the normal rate thereafter.
Many Mexicans are relatively poor and don’t necessarily have a bank account, therefore it isn’t uncommon for employees to be paid in cash, or by using payroll cards. All businesses should consider the operational implications of running this kind of payroll when they start.
Probationary periods of 30 days are commonplace for employment contracts longer than six months in duration. Notice periods are not enshrined in law, but there are stringent requirements regarding severance pay (see below).