Employing workers in Mexico

Employer of Record (EOR) service offered by our firm.

Our firm offers Employer of Record (EOR) services as an efficient alternative to allow our clients from USA, Canada, Europe or any other latitude to relocate their operations into Mexico to take advantage of the local skilled workforce and proximity to the US market.

For those cases when a foreign company just wants to hire workers in Mexico, our firm offers EOR services to hire them on our client’s behalf, handling all the administrative tasks associated with hiring and managing employees, providing a strategic advantage to our clients by allowing them to focus on their core business functions, leaving us the complexities of payroll, benefit administration, taxes, and employment compliance.

As EOR, we partner up with our client to become the legal employer for its team for tax and administrative purposes, providing the legal framework to employ workers under the Mexican laws while removing the requirement of establishing a legal entity.

As EOR, our firm provides on an on-going basis the following relevant services:

  • Advising on pre-employment requirements
  • Ensuring employment is compliant with Mexican employment law
  • Advising on the length of the maternity leave, paternity leave, public holidays, illness benefits, medical benefits
  • Preparing and updating locally compliant employment contracts
  • Processing local payroll as per IMSS and SAT regulations
  • Filing employment-related tax returns
  • Preparion of official payslips for employees
  • Distributing salary payments
  • Payments of Income tax and social security contributions to the local tax authorities (IMSS, SAT)
  • Offboarding, contract termination and/or severance administration.

Our clients, when working with our firm as EOR, are responsible for:

  • Sourcing and recruiting their own workers
  • Managing the employee’s day-to-day workload
  • Contributing to the personal / professional development of the employee through their work
  • Following any guidance given by our firm on employment and HR best practices or legal obligations in Mexico, such as the employment contract, public holidays, annual leave, sick leave, maternity and paternity benefits, probationary periods, overtime pay, statutory redundancy payments, liability insurance, including disciplinary or performance issues and many others.
  • Ensuring that payroll bills relating to their team are paid to our firm before the cut-off point in each pay cycle

Why retain the EOR service offered by our firm?

Most of the companies offering EOR services are neither lawyers nor accountants. Their core staff is administrative in charge of selling the service and retain local accounting and law firms to provide the actual service, thereby increasing unnecessarily the cost for the EOR service ultimate paid by the client.

Unlike the foregoing, we are a law firm with expertise in EOR service, with our own accounting and bookkeeping staff that provides the ultimate EOR service directly to our clients without companies in the middle.

This makes us the best option as we are the lawyers surveilling the operation, managing all legal matters the EOR service and above all, protect our clients from legal contingencies that might arise from labor disputes or conflicts initiated by onboarded employees under the EOR service.

Benefits of EOR in Mexico for Nearshoring strategy.

Turn-key Solutions

Our firm, as EOR, takes care of all employment-related matters and requirements, including taxes, social security contributions and payroll processing and taxes among others. We take care of reducing the risk of non-compliance as we are experts in Mexican labor law.

Straight-Forward Market Entry

EOR facilitates straight-forward entry to the Mexican market, sometimes faster than setting up a subsidiary in Mexico. By using partnering up with our form, our EOR service allows our clints to start hiring immediately, accelerating the entry into the Mexican labor market.

Expense Optimization

Our EOR service eliminates the need to set up a separate legal entity, allowing our clients to reduce administrative costs associated with running a services operation in Mexico.

Cost Reduction and Flexibility

The EOR service provided by our firm allows our clients to cut costs associated with setting up a legal entity in Mexico as our firm hires and manages the employees our clients have on board. Our firm then invoices our client who pays an invoice of the cost of the employees on boarded, and the client can easily adjust the team size and number of onboarded employees any time.

Contact us to provide you with a detailed description of the foregoing and clarify any question regarding the EOR service offered by our firm for the expansion of your company in Mexico.

BENEFITS OF EOR SERVICES IN MEXICO vs OTHER SCHEMES

CONCLUSION

Setting-up your own company or subsidiary in Mexico is a good decision when the plan is to have full direct presence with aggressive local growth for the long haul, however, if the target is to fast-track the expansion of your operations in Mexico, definitely the option of Employer of Record 8EOR) offered by our firm is much simpler and a lot quicker for business.