Mexican Federal Labour Law ("FLL") does not expressly provide for specific categories of employment status. However, it is possible to make a practical distinction between the categories of workers mentioned below.

• Trustworthy employees: Those with functions of management, supervision, inspection, and auditing of a general nature (white-collar employees).
• Union workers: Individuals rendering services under a collective bargaining agreement (blue-collar employees).
• Permanent employees: Individuals rendering services for an indefinite term.
• Temporary employees: Individuals rendering services for a fixed term or for a specific job or task.
• Management or executive employees: High-level employees who are entitled to at least the minimum statutory benefits afforded by the FLL (including payment of overtime) and to be registered with the Mexican Social Security, regardless of their position and job description. These employees often receive greater benefits than those granted by the FLL, which is acceptable, provided that all other employees receive at least the minimum statutory benefits.
• Digital Platform workers: The FLL recognizes workers who provide services through digital platforms as employees, granting them access to labour rights and social security. A digital employee is defined as a person who performs subordinate activities and earns a salary for their job. 

On the other hand, contractors/consultants should not be treated as employees as they perform services in exchange for a fee but are not subordinated to an employer. These individuals are (i) hired through services agreements; (ii) offer services to the public in general; (iii) have their own establishment and personnel and; (iv) their income derives from different sources.

Yes. The following types of contracts are provided for in FLL:

• For an indefinite term: This is the most common type of agreement executed between employees and employers.
• Fixed-term contracts: This type of agreement may be executed only if the activities call for a fixed term or if the employee is hired to temporarily substitute another employee.
• Contracts subject to a probation period: The probation period can be of up to 30 days for employees in general positions and up to a maximum of 180 days for management, administration, specialized technical or professional positions. During these periods, the employee is entitled to enjoy the minimum mandatory benefits provided by FLL.
• Contracts subject to initial training: This period can be of up to 90 days for employees in general positions and up to 180 days for management, administration, specialized technical or professional positions. During these periods, the employee is entitled to enjoy the minimum mandatory benefits provided by FLL. Once hiring periods elapse, they cannot be extended. Should employees satisfactorily pass the probation or initial training period, they would need to be hired under an agreement for an indefinite period of time. 
• Telework contract: This contract applies when an employee works more than 40% of their time outside the workplace using communication technologies. Employers are subject to specific obligations under this contract. One important obligation is that employers must recognize the employee’s right to digital disconnection, pay a proportional part of internet and electricity expenses attributable to work, and ensure adequate health and safety conditions in the workspace.
• Digital Platform Workers contract: A formal employment contract must be executed separately from the platform's general terms and conditions of service and may be signed digitally. The workday under this modality is primarily flexible and discontinuous, meaning the employment relationship exists only during the time the worker is actively performing a task. The contract must specify the amount the employer will pay per task or service completed, any applicable bonus arrangements, and the health and safety obligations specific to this modality. 

Under Mexican law, employment contracts must be in writing and must include at least the following:

• Employer’s and employee’s name, nationality, gender, civil status, Tax ID and address.
• Indication of whether the employment agreement is executed for a specific job or term, or for an indefinite term.
• A description of the services to be provided.
• The place where the work is to be performed.
• The length of the work shift.
• Salary amount, day and place of payment;
• Confirmation that the employee will undergo training pursuant to the procedures and programs established by the employer.
• Designation of beneficiaries for salaries and accrued benefits derived from the employee's death.
• Other terms and conditions of employment, such as days off and holidays, agreed upon by the employer and employee.

Yes. On a pro-rata basis to actual time worked.

No. One of the main elements of an employment relationship is that the services must be provided personally.

If the transfer includes the assets of the company, then an automatic transfer of employees occurs and the acquiring entity becomes a substitute employer. The new employer must honor the terms and conditions of employment originally agreed with the former employer, and no obligation to pay severance arises. Under this scenario, the employee has no saying nor right to refuse to be transferred, as the employment relationship is not terminated but rather continued with a new employer.

However, if there is no transfer of assets, then employees may object to being transferred and a constructive termination may be triggered and therefore be entitled to receive a full severance payment.

Not as long as the terms and conditions of employment are fully honored. If the change of control implies damage to the detriment of the employee's terms and conditions of employment, then a constructive dismissal may be triggered, which would entitle the employee to full statutory severance, including three months’ salary as severance indemnification, twenty days of salary for each year of service, Christmas bonus, accrued vacation, vacation premium, and seniority premium.

Terms and conditions of employment cannot be modified unilaterally to the detriment of the employee's terms and conditions of employment.

Unilateral changes that are detrimental to employees will trigger constructive termination and will entitle employees to payment of full severance.

Change of terms and conditions to the detriment of the employee cannot be made even with the express consent of the employee, as terms and conditions of employment cannot be waived in any manner whatsoever. Any agreement, on the contrary, will be deemed null and void.

No. Unlike other countries where employment-at-will is the general rule, an employer in Mexico may dismiss an employee without liability only if there is a justified cause expressly provided by law under Article 47 of the Federal Labor Law. These are the only grounds that allow termination without employer liability. If none of the causes established in Article 47 applies and the employee is dismissed, the termination will be considered unjustified, and the employee will be entitled to receive full statutory severance, including three months’ salary as severance indemnification, twenty days of salary for each year of service, Christmas bonus, accrued vacation, vacation premium, and seniority premium.

Yes. A wrongfully terminated employee is entitled to receive a full severance package as follows:

• A lump-sum payment of three months’ salary. This remedy is calculated based on the integrated salary of the employee, including premiums, bonuses, and commissions, among others.
• Twenty days for each year of services rendered based on integrated salary as referred to above.
• A seniority premium equivalent to twelve days' salary for each year of rendered services; however, for calculation purposes, the daily salary is capped at two times the minimum daily wage in Mexico.
• Any statutory or contractual accrued benefits in arrears must be paid up to the termination date.

FLL does not regulate whistleblowing nor provide specific protection to whistleblowers. However, whistleblowing is not considered a justified ground for dismissal. This means that an employee terminated for "blowing the whistle" will be entitled to receive full severance.

It is common practice for employers to adopt internal whistleblowing policies which provide that there will be no retaliation against whistleblowers.

Yes. Employers are charged with the following data privacy obligations.

• Issue a “Privacy Notice” to each employee. A Privacy Notice is a physical or electronic document generated by the data controller (employer), made available to the data subject (employee) prior to the processing of personal data.

A full privacy notice must at least include: (i) identity and domicile of the data controller; (ii) purposes of the data processing; (iii) means to limit the use or disclosure of data; (iv) rights of Access, Rectification, Cancellation and Objection of personal data (“ARCO rights”); (v) data transfers to be made to affiliates, subsidiaries or related parties; (vi) procedure to notify changes to the privacy notice; and (vii) specific mention that sensitive personal data is being processed

• Appointment of a Person or Department of Personal Data in order to manage personal data.
• Establish security measures in order to protect personal data from damage, loss, alteration, destruction or unauthorized use.

Breach of the aforementioned obligations may result in any of the following sanctions:

• Written order to comply with privacy rights.
• Fine ranging from USD$500.00 to USD$1,600,000.00.
• For repeated occurrences, an additional fine could also be imposed, ranging from USD$500.00 to USD$1,600,000.00.
• Three months to three years imprisonment may be imposed on any person authorized to process personal data who, for profit, causes a security breach affecting the databases under his or her custody.
• Six months to five years imprisonment may be imposed on any person who, with the aim of achieving unlawful profit, processes Personal Data deceitfully, taking advantage of an error of the data subject or a person authorized to transmit such data.

Anti-discrimination provisions are included at a Constitutional level and are also regulated in the Federal law to Prevent and Eliminate Discrimination and in the FLL and the Federal Criminal Code.

In general terms, anti-discrimination regulations provide that no individual may be discriminated against on the grounds of race, social origin, nationality, gender, age, disability, religion, immigration status, health, sexual orientation, political opinion or social status.

Our employment legislation requires employers to ‘treat employees with due consideration and avoid mistreatment by word or conduct’, as well as to avoid ‘denying employment (to an applicant) based on any of the protected categories.

Both employers and employees can be held liable for discrimination and harassment in the workplace.

An employer’s liability could consist of payment of legal severance if a constructive termination attributable to the employer is triggered, whereas discriminatory actions from employees are considered just cause for termination for cause.

It is also provided in the Criminal Federal Code that the employer’s representatives and co-workers could also be criminally liable if determined by the corresponding courts.

Employees are entitled to enjoy at least 12 vacation days after the first year of service. The vacation period increases by two working days for each subsequent year of service until it reaches twenty days. Thereafter, the vacation period increases by two days every five years of service.

In relation to parental leave, women have the right to six weeks of leave prior to the birth of a child and six weeks following the birth of a child. In the case of adoption, women are entitled to a leave of six weeks. Male employees are currently entitled to five business days of paid paternity leave when their spouse gives birth or they adopt a child.

Regarding leave to care for a child diagnosed with cancer, either the mother or father may be granted between one and up to twenty-eight days of unpaid leave for this purpose, with no obligation on the employer to make payment during such period.

As a general rule, restrictive covenants are not enforceable in Mexico, as the Mexican Constitution states that no one can be prevented from performing any activity or from providing any kind of services, provided that they are legal.

However, the Supreme Court recently held that restrictive covenants may be enforceable provided that (i) they apply for a determined period; (ii) limited to a specific territory and (iii) compensation is paid in exchange.

The law is silent regarding reasonable restrictions as to geography, duration, scope and consideration. This becomes a matter of agreement entirely.

No. They cannot be terminated for refusing to sign a restrictive covenant. An employee terminated based on this ground is entitled to receive full statutory severance.

The law is silent regarding the amount of consideration. This becomes a matter of agreement between the employer and the employee entirely.

Yes. All employers must register their employees at the Mexican Institute of Social Security (IMSS, for its acronym in Spanish) in order to contribute to the mandatory federal social security program. Employers and employees must contribute to such an institution. Employers must withhold the employee’s contributions.

Enrollment in IMSS affords employees a retirement plan, among other benefits such as major medical.

FLL entitles all employees rendering services in Mexico to the following minimum statutory benefits that cannot be waived in any manner whatsoever:

• A year-end bonus is equivalent to at least fifteen days' wages (Christmas Bonus) and payable prior to December 20 of each year.
• An annual vacation period, the length of which depends on the employee's seniority.
• A vacation premium of 25% of the salary payable to the employee during the vacation period and;
• Mandatory paid holidays. - Enrollment in Social Security.

Furthermore, all employees are entitled to share the employer’s profit at a rate of 10% of the pre-tax profits of the employer. Profit share is not considered a benefit but rather an employer obligation that must be paid only when profits are generated.

The retirement age in Mexico is 65 based on social security provisions; however, it is not mandatory to retire at that age, as the employee may legally continue rendering services.

If the employee reaches the retirement age but he/she does not wish to retire, the company cannot force the employee into retirement.

No. Terms and conditions of employment cannot be terminated or change in detriment of the employee under any circumstances, as employment-related rights cannot be waived in any manner whatsoever. Doing so will entitle the employee to full statutory severance.

Employees working in essential businesses or those that are open under the epidemiologic traffic light system must return to work, and the employer must observe certain sanitary measures to keep employees safe, including having a sanitary protocol in place.

This means that employees of businesses that are allowed to open are legally bound to return to their activities and can be forced to come back to work unless any of these employees are considered amongst vulnerable populations. Given that employees are legally bound to return to work, any employee with more than three unjustified absences or who does not comply with the sanitary measures in place may be subject to disciplinary actions which could lead to termination for cause.

Vulnerable employees cannot be required to return to the workplace during a red, orange or yellow classification. These employees can be required to work from home if their activities allow it. Vulnerable employees are considered those aged over 60 or with a diagnosis of high blood pressure, diabetes, heart or lung disease, immunosuppressive illnesses such as HIV or cancer, and pregnant/lactating women, regardless of whether their work activity is considered essential or not