Advantages of using an Employer of Record (EOR) in Mexico

Situated in the southern part of North America, Mexico is the ninth-largest economy in the world. Due to its appropriate strategic location, tropical climate, and political stability, many foreign companies are trying to run their business in Mexico. Mexico is known for its thriving food industry, the tobacco industry, chemical industry, tourism, and so on. If you are dealing in food, beverage, iron, steel, or clothing, Mexico can be the right destination for you to expand your business.

 

But, it won't be a piece of cake for you to operate your entire business from your home country. You will need to hire highly skilled workers from Mexico, take care of their salary and other employment benefits, plan for your business, abide by the local laws, etc. All these can keep you and your employees occupied for days. So, it would be wise of you to partner with an Employer of Record Mexico as they handle all the administrative tasks related to employment from the very beginning. Let's learn about the advantages of using an EOR in Mexico in detail.

 

Advantages of hiring an EOR in Mexico

 

·        • Recruitment process, onboarding, and immigration

The Mexico Employer of Record plays a major role in conducting the entire recruitment process. During the hiring process, the EOR abides by all the cultural norms prevalent in Mexico and tries to respect the recruited candidates' interests. On behalf of your company, EOR Mexico follows all the local labor laws and communicates with the labor union to avoid legal complications. 

 

• Employment contract

As you are looking to expand your business in Mexico, you should draft an employment contract mentioning the salary of the employee in Mexican Peso. This employment contract should contain all kinds of compensations, bonuses, employment benefits, terms, and regulations of your company. The EOR hires Mexican employees prefer it if the contract is typed in the local language. In case you are hiring an employee from Mexico for more than half a year, you should keep him or her under the trial period for at least a month. As you collaborate with an Employer of Record Mexico, they will take care of the entire contract generation part following the Mexican government's minimum wage criteria.

 

• Leaves and employment benefits

If an employee works with your company for a year, he or she will be entitled to having a paid vacation leave of 6 days. With your service duration, these vacation leave days keep increasing. The executives and senior professionals get 12 to 18 days of such leave in Mexico. Apart from this, there are sick leaves, and maternity leaves too. The first one can be paid or unpaid, depending on the ailment and employment situation. It can be pretty hectic for your company to keep track of all its employees' leaves and payments accordingly. So, the Employer of Record Mexico comes into the picture and tackles everything related to employee leaves, saving your vital hours. 

 

• Working hours and holidays

To run a business in Mexico, you should know that in no case an employer is allowed to let the employee work more than 48 hours a week. The standard timing for the day shift is 6 am to 8 pm, whereas, in the case of the night shift, it is 8 pm to 6 am. For overtime of employees, you need to pay extra. You need to keep your office closed during the Mexican national holidays such as New year's day, constitution day, Mayday, Independence day, revolution day, Christmas day, etc. The Mexico Employer of Record takes care of the working hours of the employees and adds the overtime payment to their salaries. 

 

Apart from these four, the EOR team comes forward to help your company with the payroll service, income tax distribution, health insurance benefits, and other benefits also. If you are contemplating a business expansion in Mexico now is the right time to get in touch with an Employer of Record Mexico.