Mexican laws and regulations

generally speaking, the labor laws in Mexico are biased towards protecting workers, so China enterprises should pay special attention to the regulations on labor and employment when setting up companies in Mexico. First of all, introduce the basic situation of labor-related regulations in Mexico. 1. According to Mexican law, the working hours of workers are 8 hours a day and 48 hours a week, and overtime is allowed, but it is stipulated that overtime should not exceed 3 hours a day and 3 times a week. The minimum daily wage is 172.87 pesos. Two, recruit new employees can be agreed probation period, generally not more than 3 days. If it is a special position or a special type of work, such as manager, manager or technical type of work, such as welder and computer maintenance, the probation period can reach 18 days. 3. Labor contracts in Mexico are divided into two types: individual contracts and collective contracts. Individual contracts are labor contracts signed without trade unions, while collective contracts are generally signed with some workers after trade unions intervene. According to the different duration of the labor contract, it can be divided into three types: probation contract, short-term contract and long-term contract: 1. Probation contract is the contract signed by the employer and the employee during the probation period, and the general term is one month (3 days) or three months, at most six months. 2. After the probation period, a long-term contract is signed with the employee, and there is no time limit. 3. Another special contract is a short-term contract, which is based on a certain period or work content. Short-term contracts are only applicable to a few special situations: (1) For a project, for example, in order to build a house or a factory building, some construction workers are recruited and short-term contracts will be signed with them. The contract will state that it is a short-term contract, and the contract will expire after the completion of the project, and the labor relationship will be over; (2) peak season sales, for example, in Mexico at Christmas, if there are not enough sales staff in the store, you can recruit in a short-term form and sign a short-term contract, stipulating that the labor relationship will end when the sales season ends; (3) Temporary replacement post If an employee in the enterprise has something temporary (such as childbirth or further study, etc.) and can't take part in the work in the short term, it can also recruit short-term workers to temporarily replace this position, and make it clear in the contract that the new employee is recruited for temporary replacement post, and this short-term contract will end when the original employee comes back to work. Please note that short-term contracts are only applicable to the above situations. Fourth, enterprises operating in Mexico are also very concerned about the compensation for dismissal of employees. Mexico's federal labor law stipulates some legal reasons for dismissing employees, such as drinking or taking drugs during working hours, insulting colleagues or bosses, or being prosecuted by the procuratorate for violating the criminal law. These are all legitimate reasons for dismissing employees. In this case, the employer does not have to pay compensation for dismissing employees. However, if you want to fire an employee without justifiable reasons, you need to pay compensation to the employee. Generally speaking, it is the employee's salary for three months, plus 2 days' salary for every year of work. 5. Another matter that needs special attention is the trade unions in Mexico. Because Mexican trade unions have great power, they can organize workers to go on strike. As an enterprise, we need to pay special attention to this point, that is, to handle the relationship with trade unions well. Trade unions in Mexico are divided into white trade unions and black trade unions. White trade unions refer to those that protect the rights and interests of employers and bosses and consider them from the standpoint of employers. Black trade unions are trade unions that will be tougher against enterprises for their own interests or the interests of workers. Therefore, we suggest that choosing white trade unions to intervene in the company's labor and personnel-related matters is beneficial for enterprises to carry out their work and protect their interests. Six, in terms of social insurance, Mexican law stipulates that enterprises must pay social security, housing provident fund and pension to employees. Its tax rate is also mainly reflected in these three aspects. The tax rate of social security in Mexico is still relatively complicated, which generally requires professional accountants to be responsible. According to the situation of each company, the degree of danger of labor is different, so the tax rate of each company is different, which is generally determined by accounting or social security bureau. In terms of taxation in Mexico, the value-added tax is generally 16%, and the income tax is generally 3%. For the border areas with other countries, the value-added tax will be relatively small, and the corporate income tax will be different according to different types of companies. For the specific Mexican tax policy, please refer to our previous article: Latin American Investment Guide | Overview of Mexican tax policy. Finally, some legal suggestions are provided for China enterprises investing in Mexico: first, we should pay attention to labor and tax laws, understand Mexican laws and regulations in advance, and establish a compliance system; The second is to sign a formal written labor contract with the workers; The third is to find a labor lawyer as soon as possible if a trade union comes to the door; The fourth is to pay social security to employees on time and in accordance with regulations. The above points are some important evidences that we can provide to the Labor Arbitration Committee and the Labor Court in case the workers file a labor arbitration with the Labor Arbitration Committee. Finally, before the investment project starts, you must find a lawyer who knows the tax law to calculate the specific and accurate tax rate according to the situation of your enterprise.