Employment and contracts
Employment contracts under Mexican labor law, probation and term structures where they apply, and the documentation that makes a later termination defensible instead of expensive.
We are the employer of recordGlobal platforms do not employ anyone in Mexico. They contract a local company that holds the REPSE registration, add a software layer and a margin, and pass the work down to a partner you never meet. We are that kind of local company. Same legal structure, one less layer, and we can also recruit the people, which a platform cannot.
An employer of record in Mexico is a locally registered company that becomes the legal employer of people who work for a foreign client. It signs the employment contract, runs payroll, pays social security and housing fund contributions, handles terminations and carries the labor obligations, while the client directs the day to day work. In Mexico the arrangement is only lawful when that provider holds an active REPSE registration with the Ministry of Labor. The April 2021 labor reform banned generic personnel subcontracting, and the penalties for getting it wrong land on the client company, not only on the provider.
This is a fair question to ask any provider, including us. Ask a platform for the name and REPSE number of the entity that will appear on the employment contract.
When you contract a global employer of record platform for Mexico, the entity on the employment contract is not the platform. It is a Mexican company holding a REPSE registration, subcontracted by the platform, chosen by the platform, and managed through a support queue. You are paying the platform's margin on top of that company's fee for a relationship you do not control. If the local partner underperforms, your leverage runs through a ticket in a different time zone.
To be fair about it: if you are onboarding three remote engineers across five countries and Mexico is one of them, a platform is a reasonable choice and the margin buys you a single console. If Mexico is where the operation actually lives, that margin is buying you a layer between you and the company doing the work.
Employment contracts under Mexican labor law, probation and term structures where they apply, and the documentation that makes a later termination defensible instead of expensive.
We are the employer of recordCalculation, tax withholding, bank dispersion and digital stamping, plus social security and housing fund contributions paid and evidenced every period.
Weekly, biweekly or monthlyYear-end bonus, vacation and vacation premium, profit sharing exposure and the mandatory benefit structure, calculated and paid on our side rather than estimated on yours.
Calculated, not estimatedQuarterly SISUB and ICSOEX reports filed and acknowledged, monthly tax compliance opinion, and the document package that keeps your invoices deductible.
Shared to your account each periodSourcing, screening and technical evaluation in the local market. This is the part a platform hands back to you, and the part that decides whether you can staff at volume.
Included as a serviceThe process, the calculation and the exposure. Dismissal in Mexico is more demanding than in the United States or Canada, and a poorly documented one is a foreign operator's most common expensive surprise.
Handled on our sideYou get the legal framework that applies to your case, the fully loaded cost, a fee and a timeline. A consultant replies within two business hours.