Why you need labor contracts and social security for your workers in Mexico

Most people think that Mexican labor law is so hard to comply with, is better to not comply with it and have irregular labor relationships with employees.

This is a mistake. A labor contract with a “work and conduct rules” section can give immense certainty to the parties, as well as provide was to let go employees that are not doing their work without incurring in huge sanctions and termination severances.

In regards to social security, Mexican Law requires it and the liability of not having your workers registered on the Mexican Institute of Social Insurance (IMSS) is very big fines (in some cases can go up to $25’000 USD per worker), plus back payment of social insurance fees.

Not having them registered on IMSS also takes away your workers chances of getting a home through government federal programs and getting access to IMSS hospitals in case of a life-threatening emergency (some of the best hospitals in the country are IMSS).

Perhaps the difficult part of doing all of this in Mexico is the tax implications and some procedures of setting up, but all such complications can be solved by hiring the correct person to do it.

We offer a service to streamline this procedure, so that it’s easier for you to regularize your labor relation with your workers. Don’t hesitate to check it out in our services section.

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