Contracts in Mexico

Overview by

The Active Population in Figures

Main Indicators 2006 2007 2008 (third trimester)
Labor Force 44447032 45621685 45535466
Labor Force (Annual Growth, %) - - -
Rate of Activity (%) 96.4 96.5 95.8
Unemployment Rate (%) 3.6 3.5 4.2

Source: INEGI - National Institute of Statistics and Geography

Employed Persons, by Occupation (% of Total Labor Force) 2007
Agriculture, cattle and fishing 2.6%
Extractive Industries 0.6%
Transformation Industries 28.5%
Construction Industries 9.7%
Electric Industry 1.2%
Trade 20.8%
Transportation and Communication 5.5%
Enterprises, Personal and Home Services 24.2%
Social and Community Services 6.8%

Source: National Institute of Statistics and Geography


Management of Human Resources



Method of Recruitment
Enterprises use specialized methods of recruitment, but personal recommendations by word of mouth are also frequently used.  However, applying for a job by Internet is becoming more and more popular.
Recruitment Agencies
Occ, Trovit, Bumeran.
Recruitment Websites
Mexican Job Offers
Infojobs Mexico
Monster Mexico

The Contract

Type of Contract
Employment contracts can be for a specific job assignment or for a fixed period of time. If there is no stipulation, it is for an indefinite period of time.
Breach of Contracts
  • Retirement
Reasons to break a job contract:

- False information given by the employee or the syndicate, fake certificates or references.

- Get involved in violent acts, lack of honesty or maltreatment against supervisors.

- Produce material damages intentionally during working hours.

- Reveal confidential information of the enterprise.

- Working under the influence of alcohol or drugs.

  • Dismissals
An employee can break his job contract anytime, with a justified reason and without incurring responsibility. Justified reasons are:
- Deception on the part of the supervisor or the management group.
- Violence, lack of honesty, threatenings against the employee or his family.
- Reduction of the employee's salary.
- Evidence of an existing danger to the employee's safety or health.
Labor Laws
Federal Work Legislation

Dispute Settlement


Conciliation Process

Cases of Dispute
Working conditions, unfair dismissal, sexual and moral harassment, verbal violence, physical violence.
  • Legal Framework
Labor conflicts are regulated by the Federal Labor Law and the article 123 of the Mexican Constitution.
  • Procedure
Once the three representatives of the sectors (a government representative, an employee and one of the managers) are reunited at the Board of Conciliation, the situation is negotiated in order to reach a settlement convenient for all parties. The board can try to conciliate, but if they do not want or if they do not reach an agreement, they will initiate a process of arbitration.

For more information, consult Art. 123 of the Mexican Constitution


Judicial Structures

  • Legal Framework
The Federal Labor Law gives the power to the Federal Board of Conciliation and the Board of Conciliation and Arbitration, to act as conciliatory instances for the workers and their managers.
  • Competent Legal Body
The Board of Conciliation and Arbitrage and The Federal Board of Conciliation depend of the Ministry of Labor and Social Security.

Social Partners

Social Dialogue and Involvement of Social Partners
Mexican syndicates (or unions) are divided and organized by activity sectors and they have a relative power.  Most of them are affiliated to The Confederation of Mexican Workers (CTM). It must be considered that the syndicates have been developed as institutions of 'social resistance' which prevent, in many cases, structural reforms as well as the economic development of the country.
Unionization Rate
30 %.
Mexican Syndicates
Confederation of Mexican Workers
Regulation Bodies
Ministry of Labor and Social Security
Confederación Patronal de la República Mexicana (COPARMEX)

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