Mexico (MX)
Mexico is one of the world's most important expat destinations, especially for US and Canadian retirees, remote workers, entrepreneurs, families and lifestyle migrants.
Employment Rights
Sick leave, dismissal protection and red flags in Mexico.
Mexico employment law is governed by the Federal Labour Law (Ley Federal del Trabajo — LFT) and the Constitution (Art. 123). All employees — including foreign workers — are entitled to statutory rights regardless of contract type. Employers must register employees with IMSS (Instituto Mexicano del Seguro Social) and INFONAVIT. Key features: mandatory profit sharing (PTU — 10% of profits), aguinaldo (13th month salary), vacation premium (25%), and strong severance rights. Foreign workers require an appropriate immigration status (typically Residente Temporal with permission to work or Residente Permanente). The Conciliation and Arbitration Centre (CFCRL) handles labour disputes. IMPORTANT: Constitutional reform enacted March 3, 2026 reduces maximum workweek from 48 to 40 hours gradually (2027–2030). Minimum wage: MXN $315.04/day general zone, MXN $440.87/day Northern Border Free Zone (from January 1, 2026).
Sick leave
Rules: Employer must notify IMSS of the illness. IMSS pays a sickness subsidy (subsidio por enfermedad) after a 3-day waiting period: the first 3 days are unpaid (or paid by employer per contract/collective agreement). From day 4: IMSS pays 60% of the contribution base salary (salario base de cotización) for up to 52 weeks, extendable to 78 weeks for the same illness. Employee must obtain an IMSS incapacity certificate (certificado de incapacidad del IMSS) to claim the benefit. Employer is not required to continue full salary unless the contract or collective agreement provides for it.
Doctor note: Day 1 — notify employer on the first day of absence. Obtain an IMSS incapacity certificate (certificado de incapacidad) from an IMSS clinic from day 1. The IMSS certificate is required to trigger the IMSS subsidy from day 4. Private doctor notes explain absence but do not trigger IMSS benefits.
Employer pay: Days 1–3: unpaid under LFT/IMSS unless the employment contract or collective agreement provides full pay. From day 4: IMSS pays 60% of contribution base salary for up to 52 weeks (extendable to 78 weeks). Many employers top up to 100% for the first period per contract.
Long-term: After 52–78 weeks: IMSS disability pension (pensión por invalidez) if worker is assessed as at least 50% permanently incapacitated with 150+ weeks of contributions. Disability pension: 35–70% of average salary of last 500 contribution weeks. Work injury/illness: IMSS Riesgos de Trabajo — 100% wages during treatment, then permanent disability pension.
Dismissal protection
Law: Federal Labour Law (LFT) Art. 46–50: employer must have "justified cause" (causa justificada) for termination to avoid severance liability. Justified causes include serious misconduct, theft, falsification, unjustified absences (3+ within 30 days), prison sentence, violence against employer or co-workers. Unjustified dismissal (despido injustificado): employee entitled to choose reinstatement OR: 90 days salary + 20 days salary per year of service + prorated benefits (aguinaldo, vacation premium, PTU). Protected categories: pregnant women (special protection until end of maternity leave); union officials (fuero sindical); workers aged 60+ in some collective agreements.
Deadline to sue: 60 days from the date of dismissal to file a complaint. File at the Centro Federal de Conciliación y Registro Laboral (CFCRL) for conciliation, or directly at the Tribunal Laboral (Labour Court). Mandatory conciliation step first (up to 45 calendar days). If conciliation fails, file suit at Tribunal Laboral. Bring: employment contract, payslips (recibos de nómina/CFDI), dismissal letter, IMSS registration evidence.
Probation
Trial period (período de prueba): maximum 30 days for regular employees; 180 days for managerial, executive, or technical specialist roles. Must be agreed in writing. During the trial period, employer may dismiss without severance obligation if the employee does not demonstrate sufficient competence. After the trial period, the LFT presumes an indefinite employment relationship. The employer must complete a formal evaluation and notify in writing at the end of probation if not confirmed. Employer must still register employee with IMSS from day one of trial period.
Notice periods
No statutory graduated notice period for unjustified dismissal — the LFT instead specifies severance payments. For restructuring/redundancy (LFT Art. 434–436): employer must notify unions and workers with 30 days advance notice; workers receive 3 months salary + 20 days per year of service. Employee resignation: no statutory minimum notice, but contractual provisions apply. Employee quitting for employer fault (rescisión de contrato por causa imputable al patrón): same indemnity as unjustified dismissal.
Working time
Max hours: Maximum 48 hours per week (LFT Art. 61) — applicable through December 31, 2026. Constitutional reform of March 3, 2026 (DOF): gradual reduction to 40 hours by 2030: 46h from January 1 2027; 44h from 2028; 42h from 2029; 40h from 2030. Day shift: 8 hours/day. Night shift (20:00–06:00): maximum 7 hours. Mixed shift: 7.5 hours. Overtime: max 4 hours/day, 4 days per week (not more than 3 days in a row without the same overtime type).
Min rest: One mandatory rest day per week (typically Sunday); work on Sunday triggers a 25% premium (prima dominical). Minimum 30-minute meal break per shift. Annual mandatory paid vacation days. Public holidays: 9 mandatory federal holidays plus some states add additional days.
Overtime: First 9 overtime hours per week: 200% premium (double normal rate). Hours beyond 9 overtime per week: 300% premium (triple normal rate). Habitual overtime is forbidden under LFT. Employers who routinely assign overtime risk Labour Inspectorate sanctions and retroactive claims for up to 2 years of unclaimed overtime.
Vacation
Vacaciones Dignas reform (effective 2023, DOF Dec 27 2022): statutory minimum vacation starts at 12 working days after 1 year of service (was 6 days before 2023). Scales by tenure: year 1 = 12 days, year 2 = 14 days, years 3–4 = 16 days, years 5–9 = 18 days, years 10–14 = 20 days, increasing by 2 days per 5-year band thereafter. Vacation premium (prima vacacional): minimum 25% on top of vacation pay. Aguinaldo: minimum 15 days salary paid before December 20 each year (prorated for partial years). Profit sharing (Participación de los Trabajadores en las Utilidades — PTU): 10% of company taxable profit; capped at 3 months average salary or the average of the previous 2 years' PTU, whichever is higher; distributed in May and June.
Anti-discrimination
The Federal Labour Law (LFT Art. 3, 56 bis) and the Federal Law to Prevent and Eliminate Discrimination (LFPED) prohibit workplace discrimination based on: ethnic or national origin, sex/gender, age, disability, social condition, health, religion, opinions, sexual orientation, gender identity, marital status, pregnancy, or political affiliation. Sexual harassment at work is a legal violation and a cause for rescisión de contrato. File complaints at: Consejo Nacional para Prevenir la Discriminación (CONAPRED — conapred.org.mx), the Labour Inspectorate (STPS), or the Comisión Nacional de Derechos Humanos (CNDH). No fixed statutory filing deadline — act promptly.
Contract red flags
- !Employer asks you to start local work on tourist/visitor status without permission to work — working without Residente Temporal (with work permission) risks deportation
- !Salary below the minimum wage — MXN $315.04/day general zone ($9,451/month approx.), MXN $440.87/day Northern Border Free Zone ($13,226/month approx.) from January 1, 2026
- !Salary is split between payroll and cash or offshore payments with no CFDI payroll receipt (comprobante fiscal) — IMSS, INFONAVIT and tax violations
- !No IMSS registration or NSS (Número de Seguridad Social) despite local employment — employer must register from day one
- !Contract says you are an independent contractor (honorarios) but the company controls schedule, tools, workplace and exclusivity — false self-employment (simulación laboral); IMSS and STPS can reclassify
- !Aguinaldo (minimum 15 days salary before Dec 20), vacation premium (25%), or PTU rights waived in the contract — statutory minimum rights are non-waivable under LFT Art. 5
- !Employer withholds passport, resident card or original degree certificates — illegal
- !Trial/probation period stated as more than 30 days for regular roles (180 days for executive/technical) — illegal under LFT
- !Settlement finiquito signed before receiving full payment — wait for complete liquidación before signing any desistimiento de reclamaciones
- !Non-compete or non-solicitation clauses that are indefinite, nationwide, or tied to immigration threats — Mexican courts generally refuse to enforce overly broad non-competes
Employment Rights
Unlock the complete Employment Rights guide for Mexico — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere