iGlobal Law

Core Facts

• Population:  130M
• GDP:  USD 1,144 trillion
• GDP per head:  USD 9,511
• Workforce:  52M
• Unemployment (2017):  3.19%
• High skilled monthly wages (2017):  USD 808

Regulatory

• Government debt:  43% of GDP
• Personal income tax:  35%
• Corporation tax:  30%
• World corruption ranking 2016:  123rd  Transparency International
• Ease of doing business ranking:  47th  Business Freedom Index
• Labour law:  ILO Conventions ratified
• Data protection:  Not recognised by EU as having adequate protection

In December 2012, Mexican labour law was largely reformed as the longed planned overhaul finally came to fruition. These reforms should, in most cases, be of benefit to multi-nationals operating in Mexico. Most global employers will have by now reviewed their employment practices to ensure full compliance and that they are taking advantage of the new more liberal employment regime.

They should be aware of certain restrictions, however. Mexican employers may only hire foreign workers that amount to a maximum of 10% of their workforce.  This limit excludes the hiring of executives.

In case of a claim, the employer will always carry the burden of proof regarding working conditions. Clear employment agreements are therefore essential for evidential reasons.