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  • Writer's pictureLuis Alfonso Licona Ortíz | L.D

Labor relationships in the lodging industry in Mexico

One of the most relevant issues for foreigners offering lodging services in Mexico has been the compliance with the legal provisions that ensure the protection of workers’ rights.

It is essential to mention that, in recent years, the essence of labor relations in the lodging services sector has been distorted due to unfamiliarity with the laws, inaccuracy, and/or willfulness.

In terms of unawareness of the law, this sentence has particular meaning because, although it is true that foreigners have a great deal of knowledge of labor and social security laws and regulations in their respective countries, in Mexico, they do not know the entire legal framework.

Regarding the imprecision, employers have relied on groundless criteria to enroll workers in a regime that does not correspond to them, for example, considering them as domestic workers, which is more of a family situation.

There is also the case in which employers consciously decide not to sign labor contracts or provide social security to workers, which is outrageous. It is worth mentioning that the absence of an agreement does not disregard the labor relationship, but rather that the employer, in case of a dispute, will not be able to prove the conditions (beginning of the relationship, salary, additional benefits) with which he agreed with his worker.

Although these situations come from different scenarios, they are now a systematic problem that can lead to a labor lawsuit and heavy economic penalties that can mean the financial death of the business.

Having contractual supports in compliance with labor regulations and registering workers in the social security regimes according to their correct classification benefits both the worker and the employer.

We recommend consulting your advisor so that together you can evaluate the responsibilities in labor and tax matters, among others, in the case of labor relations in businesses dedicated to lodging.


Published on November 13th, 2021.

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