Labor Contract in Mexico: Tips and Regulations

Agent and a couple signing a contract close up background happy

In Mexico, the Individual Labor Contract is a legally binding document that establishes the terms and conditions of the employment relationship between an employee and an employer. For foreign workers working in Mexico, understanding this contract is essential to protect their rights and comply with Mexican labor laws.

The law establishes…

Based on the provisions of the Federal Labor Law of Mexico, the following is indicated:

Article 20.

It is understood as an employment relationship, regardless of the act that gives rise to it, the provision of personal work subordinated to a person, in exchange for a salary. An individual employment contract, whatever its form or denomination, is one by virtue of which a person undertakes to provide another with subordinated personal work, in exchange for payment of a salary. The provision of work referred to in the first paragraph and the contract entered into have the same effects.

Article 21

The existence of the contract and the employment relationship between the person providing personal work and the one receiving it are presumed.

Article 24

The working conditions must be set out in writing when there are no applicable collective agreements. At least two copies shall be made, one for each party.

Article 25.

The document setting out the working conditions must contain:

  • I. Name, nationality, age, sex, marital status, Unique Population Registry Code, Federal Tax Registry and address of the worker and the employer; Amended fraction DOF 30-11-2012
  • II. If the employment relationship is for a specific or determinable period, for a season, for initial training or for an indefinite period, and, where appropriate, if it is subject to a trial period; Amended fraction DOF 30-11-2012
  • III. The service or services to be provided, which shall be determined as precisely as possible;
  • IV. The place or places where the work is to be performed;
  • V. The duration of the workday;
  • VI. The form and amount of the salary;
  • VII. The day and place of payment of the salary;
  • VIII. The indication that the worker will be trained or instructed according to the plans and programs established or to be established in the company, in accordance with the provisions of this Law; and
  • IX. Other working conditions, such as rest days, vacations and others agreed upon by the worker and the employer.
  • X. The designation of beneficiaries referred to in Article 501 of this Law, for the payment of salaries and benefits accrued and not collected at the death of workers or those generated by their death or disappearance resulting from a criminal act.

Article 26

The lack of the document referred to in articles 24 and 25 shall not deprive the worker of the rights derived from the labour standards and the services provided, as the lack of that formality shall be attributed to the employer.

Article 27

If the service or services to be provided have not been determined, the worker shall be obliged to perform work that is compatible with his or her strength, aptitudes, state or condition, and that is of the same kind as that which is the object of the company or establishment.

Article 31

Contracts and employment relationships shall be binding on what is expressly agreed and on the consequences that are in accordance with labor standards, good faith and equity.

Article 32

The breach of labor standards regarding the worker shall only give rise to civil liability, without any coercion being exercised over his or her person.

Article 56

Working conditions based on the principle of substantive equality between women and men may not be lower than those established in this Law and must be proportionate to the importance of the services and equal for equal work, without differences and/or exclusions being established on the grounds of ethnic origin or nationality, sex, gender, age, disability, social condition, health conditions, religion, opinions, sexual preferences, pregnancy conditions, family responsibilities or marital status, except as expressly provided in this Law.

Article 56 Bis

Workers may perform related or complementary tasks or duties to their main work, for which they may receive corresponding salary compensation. For the purposes of the preceding paragraph, related or complementary tasks or duties shall be understood to be those permanently and directly related to those agreed upon in individual and collective employment contracts, or, as the case may be, those tasks or duties that the worker habitually performs.

Article 57

The worker may request the Court to modify the working conditions when the salary is not remunerative or the workday is excessive, or when there are economic circumstances that justify it.

Definition and Presumption of the Contract and Employment Relationship

The employment relationship is defined as the provision of personal work subordinated in exchange for a salary. This means that the worker is under the direction and supervision of the employer and receives remuneration for their work. The individual employment contract, on the other hand, is the agreement in which the worker commits to performing subordinated work for the employer in exchange for a salary.

In Mexico, the existence of the contract and the employment relationship between the person providing the work and the one receiving it is presumed, even if there is no written contract. This means that, even without a written agreement, the worker still has basic labor rights.

According to the Federal Labor Law of Mexico, the working conditions must be set out in writing when there are no applicable collective agreements. The contract must contain detailed information about the parties involved, the type of employment relationship (temporary or indefinite), the place of work, the duration of the workday, the salary, and the form and place of payment of the same.

Additionally, the contract must include

provisions regarding the training of the worker, indicating whether they will be trained or instructed according to the plans and programs established by the company. It should also mention other working conditions, such as rest days and vacations.

The contract must be duly signed, preferably in blue ink, on all its pages, by both the worker and the employer’s representative. It is recommended to include the worker’s fingerprints. A clear and legible photocopy of the worker’s official identification may be included.

Contracts and employment relationships in Mexico require compliance with the agreed terms and the consequences that are in accordance with labor laws, good faith, and equity. This means that both the worker and the employer must comply with the agreed terms in the contract and respect the labor rights established by law.

Additionally, working conditions in Mexico must be proportional and equal for equal work, without discrimination based on ethnic or national origin, sex, gender, age, disability, social condition, among others.

Modification of Working Conditions

Both the worker and the employer have the right to request the modification of working conditions from the Tribunal when necessary for economic or equity reasons. This ensures that working conditions are fair and equitable for both parties.

The Individual Labor Contract in Mexico is a fundamental document that establishes the terms and conditions of the employment relationship between an employee and an employer. For foreign workers working in Mexico, it is important to know and understand this contract to protect their rights and comply with Mexican labor laws.

“Who negotiates and hires, is bound to fulfill”

– Anonymous –
Roger Mariano

Roger Mariano

Deputy General Manager, Manager, Consultant, Professor, lecturer, with over 20 years of experience in key roles in the Human Resources field, often serving as a change agent in both National and Multinational Companies. I aim to support my national and international colleagues, as well as anyone interested in learning about my experience in human resources management in Mexico.

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