When you hire an employee in Mexico, sending an employment offer letter (or employment contract) is the first step. In Mexico, every employer must have a written agreement with each employee that defines the offer of employment, conditions of employment, and employer/employee relationship. The offer letter can also help you, as an employer, stay on the right side of employment law in Mexico.
But before you send your first offer letter in Mexico, read this checklist. Below, we cover everything you need to send a legally compliant offer letter to hire a full-time employee in Mexico.
Mexico job offer letter checklist
- Contact information. Include the name, nationality, age, sex, civil status, tax ID number, and address of the employee and the employer.
- Position (job title), job description, and start date. Include the complete job description and any other relevant information about the position.
- Nature and duration of employment. The offer letter should clearly define the type of employment contract being established, as well as the duration of employment if the term is not indefinite. In Mexico, there are three types of contracts under employment law:
- Indefinite contracts, which are the most common for full-time employees.
- Definite contracts, which are used when the nature of the job requires it to have a set term, like to temporarily replace another employee who is absent from work for an extended period of time.
- Seasonal contracts, which cover fixed, limited work at certain times of the year, like during harvest or tourist seasons.
- Probation period. Clearly state in the offer letter if there is a probationary or trial period, during which time the employee will be evaluated for their suitability to the role. In Mexico, the maximum length of a probation period depends on the type of role:
- Up to 30 days for most standard employment
- Up to 100 days for technical jobs
- Up to 180 days for management, extremely technical, or specialized professional positions
- Place or places the employee will work. In the offer letter, define where the employment contract applies. If the employee will be working from multiple locations or home, be sure to list all places where they will work.
- Working hours. Outline the expected working hours and any overtime policies that the employee will be subject to. Under Mexico's employment laws, normal working hours can't exceed 48 hours per week with an average of eight hours per day.
- Compensation & Benefits.
- Salary. Specify the employee's salary or hourly compensation in MXN, as well as any other compensation they may receive (equity compensation, bonuses, etc.). You may also want to outline payment frequency or include the days that payments are made.
- Equity. If applicable, specify any equity compensation they will receive. The most common types of equity compensation for employees in Mexico are stock options and restricted stock units (RSUs).
- 13th-month salary information. In Mexico, employees are entitled to a 13th-month salary (often called a Christmas bonus) equal to at least 15 days of their salary paid prior to Dec. 20. Companies can offer more or pay earlier, but you may want to include information on the 13th-month salary benefit in the offer letter so employees always know when and how much they'll be paid.
- Benefits. It's not required to outline benefits in the offer letter, but you may want to include them to be as comprehensive as possible. If you do, be sure to address them in general terms so that if they change in the future, an amendment to the offer letter isn't required. In Mexico, the following benefits are mandatory for full-time employees:
- Social security contributions
- Severance pay upon termination
- Profit sharing
- One fully paid rest day for every six days worked
- Legal holidays
- Paid vacation time and a vacation premium
- Vacation. The employment contract should include details about your company's vacation leave policy, especially if you offer more leave than vacation time required under Mexican employment law.
- Termination policy. Clearly explain the terms of termination, including the notice that will be provided, and conditions or actions that may lead to termination. Note that no notice periods are required in Mexico unless they're agreed upon in advance. Instead, if any employee is terminated for any reason other than gross misconduct (physical abuse, deception, harassment, etc.), they're entitled to three months of their salary as compensation.
- Confidentiality and non-disclosure. While non-compete clauses are considered unconstitutional in Mexico, confidentiality and non-disclosure can be included in an employment contract to prohibit future contact with customers and clients and to prohibit future hiring of colleagues. These clauses are only enforceable if they have the express knowledge and consent of the employee, so it's important to include them in the employment contract.
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Disclaimer: Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.