Organizations looking to expand into the Nearshore region often come up against labor law regulation that is entirely different from their home country. Without specialist, country-specific knowledge, companies run the risk of making errors during the recruitment or dismissal of employees that can become costly and time consuming to resolve.
Nearshore Americas spoke to three labor law specialists in Mexico to hear the most important aspects of hiring and firing in the country.
Starting the labor relationship properly in Mexico is essential for the health of the employment contract between employee and employer, as well as for the security of the employer further down the line, explained Fernando Lopez, Labor & Employment Associate at Pizá Abogados in Mexico City.
“Employers must always have an adequate hiring scheme in place so that the employment relationship is healthy from the very beginning, and that there are preventative measures or mitigation action in place so that the employer is protected should it need to terminate its relationship with an employee,” said Lopez.
Changes made in Mexico’s Labor Law Reform of 2019 attempted to tighten protection for employees who were not always guaranteed their rights during employment disagreements. But understanding the changes, and the different types of employment contracts, are paramount for companies entering the country for the first time.
“Foreign companies are most...
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