Understanding Mexican Labor Contracts: Types and Characteristics

In Mexico, as in many other countries, there are various types of employment contracts that regulate the relationships between employers and workers. These contracts vary depending on the duration of the employment relationship and the specific conditions of the work. Below, we detail the main types of employment contracts in Mexico and their characteristics:

Contract for an indefinite period (Contrato por tiempo indeterminado)

This type of contract does not establish a specific term for the duration of the employment relationship. The contract is considered indefinite when the employment relationship exceeds 180 days. In this type of contract, a probationary period of up to 30 days can be established to verify that the worker meets the necessary requirements and knowledge. This probationary period can be extended up to 180 days in the case of workers for managerial, executive, or specialized technical positions.

Fixed-term contract (Contrato por tiempo determinado)

The fixed-term contract is used when the nature of the work requires it, such as in the case of temporary or seasonal work. This type of contract must specify the duration of the contract and can only conclude at the expiration of the established term, unless the cause that gave rise to the contract still persists, in which case the contract must be extended for as long as that circumstance lasts.

Contract for a specific project (Contrato para obra determinada)

This contract is used when it is necessary to hire someone to carry out a specific project, such as the construction of a building. The contract must clearly stipulate the nature of the project and can only conclude at the end of the project.

Seasonal contract (Contrato de temporada)

In this type of contract, it is agreed to carry out discontinuous work that does not require the provision of services every week, month, or year. For example, work that is only done during certain seasons, such as harvesting.

Training contract (Contrato para capacitación inicial)

This contract is used when the worker needs to acquire specific knowledge or skills to perform their job. The contract has a maximum duration of 3 months, or up to 6 months in the case of workers for managerial or executive positions. If at the end of the training the worker does not demonstrate competence, the employment relationship can be terminated without liability for the employer.

Contract with probationary period (Contrato con periodo de prueba)

In indefinite contracts or those exceeding 180 days, a probationary period of up to 30 days can be agreed upon, which can be extended up to 180 days in the case of workers for managerial, executive, or specialized technical positions. During this period, the worker is entitled to the salary and benefits corresponding to their category or position. If at the end of the probationary period the worker does not meet the necessary requirements and knowledge, the employment relationship can be terminated without liability for the employer.

It is important to note that the choice of the appropriate type of employment contract will depend on the specific needs of each employment situation. It is advisable to seek advice from a labor law specialist to ensure that the contract complies with current regulations and protects the rights of both the employer and the worker.

“A bad settlement is better than a good lawsuit.”

-Tito Livio-

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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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