Tecma University

Back to blog page

Employer responsibilities in Mexico

Employer responsibilities in Mexico

Employers that are new to Mexico should know what the obligations to their workers are, or should hire partners experienced in the provision of expert guidance.

Employer responsibilities in Mexico include making the essentially important effort to understand the functions and follow the regulations of the country’s Social Security system, the contents of its Federal Labor Law and the scope and breadth of its Safety and Hygiene Regulations, or to make certain to partner with experienced Mexico experts to guarantee that they avoid difficulties and operate in accord with them.

The Mexican Social Security Institute was founded in the early 1940s in order to comply with Article 123 of the Mexican Constitution, which addresses issues dealing specifically with labor, and the relationship between workers, their employers and the federal government. One of the major employer responsibilities in Mexico is to participate in the Mexican Social Security program as defined by the country’s law. The purpose of Mexico’s Social Security system is to:

  • Provide workers and their families the medical assistance that is required to ensure that their health and physical well-being are maintained, as well as to grant access to other services necessary to sustain life.
  • Disburse guaranteed pension benefits to workers upon retirement, provided that they have complied with legal prerequisites established by Social Security Law.

The Social Security regime is divided into two parts: the first one consists of the one in which the roles of the employer, the State and the worker are clearly defined by law. The second area in which  the Mexican Social Security Institute plays a role is in the voluntary realm. The latter portion of this dual system applies to domestic labor, as well as to individuals that are employed independently. Employer responsibilities in Mexico in the first of the aforementioned cases include:

  • Adhering to employer responsibilities in Mexico as established under labor and social security legislation, which includes providing Mexican workers with legally defined benefits, at a minimum
  • Going through the process required to register as an employer as a participant in the legally mandated programs of the Mexican Social Security Institute, or, as it is known by its Spanish acronym, the IMSS
  • Enrolling newly hired employees into the IMSS within a five day period after contracting them
  • Complying with employer responsibilities in Mexico that include retaining taxes and paying Social Security contributions, those related to housing and retirement programs, as well as paying the employer match that is mandated by law for each benefit.
  • Executing labor agreements in accord with Mexican Federal Labor Law, and paying hourly workers on a daily basis, while compensating those that render service on a salaried basis every two weeks

Employer responsibilities in Mexico also include the requirement that companies form and participate in what are called “Safety and Hygiene Commissions.” The purpose of these bodies is to view the workplace with a critical eye, so as to reduce the incidence of accidents that cause harm to workers and visitors to manufacturing facilities.

Also, among the employer responsibilities in Mexico is the obligation to adequately train employees and provide them with the tools and implements that they need to perform the functions for which they were hired, as well as to provide them with the necessary equipment to keep them save during the course of performing their duties. Before committing themselves to initiating operations in the country manufacturing executives should research, or contract research, that informs on the topic of employer responsibilities in Mexico.

Manufacturers that choose to work with a company that provides what are known as Mexico shelter services have the advantage of having a ready made team in place to deal with the details and intricacies of these matters in an expert fashion.

The result of this is the

  • the achievement of the freedom required to focus fully on value-added manufacturing,and its component processes and operations
  • the reduction of risk related to non-compliance with Mexican Social Security Law, Federal Labor Law and Mexican Health and Safety Regulations
Share

Join discussion in this post

Get in touch

Fill out the contact form. One of Tecma’s team of trusted professionals will contact you promptly about advantages of manufacturing in Mexico.

Get in touch

Subscribe to the Tecma News Brief

This quarterly publication will be populated with content that is useful and relevant to readers that are contemplating Mexico investments, have operations already within the Republic, as well as to other individuals that have an interest in Mexico and its manufacturing sector.