Remote Work with EOR in Mexico: Your Rights Guaranteed

Opportunities to work remotely with international companies from Mexico are more accessible than ever. However, this modality can generate uncertainty: How do I know my contract is legal? Who will register me with IMSS? Will I receive year-end bonus, vacation, and profit sharing (PTU) like any other worker in Mexico? The answer to all these questions is an Employer of Record (EOR).

When a foreign company hires you through an EOR, you’re not working as a freelancer or independent contractor. You’re being formally hired by a Mexican company (the EOR) that acts as your legal employer. This means you have all the rights and protections granted by the Federal Labor Law (LFT). The EOR is the bridge that formalizes your labor relationship, ensuring the international company meets all its obligations in Mexico and that you receive your salary and benefits punctually, securely, and completely legally. It’s the structure giving you peace of mind to focus on your professional growth.

Who is my real employer if i work through an eor?

This is the most important question, and its answer defines your job security. When you’re hired via an Employer of Record, you have two key relationships working in parallel:

1. Your functional employer: It’s the international company for which you perform your daily work. They define your tasks, supervise your performance, manage your projects, and are responsible for your professional and cultural development within their organization.
2. Your legal employer (the EOR): It’s a company legally established in Mexico. The EOR is who signs your employment contract, registers you with the Mexican Social Security Institute (IMSS), processes your payroll, withholds your taxes, and ensures you receive all legal benefits.

Legally, your employer is the EOR. This structure is what protects you. It means your rights don’t depend on a company in another country but are anchored in Mexican legislation, with a local entity responsible before authorities like the Ministry of Labor and SAT.

The real difference in your daily life: direct contract vs. eor

Working for a foreign company through an EOR is fundamentally different from being an independent contractor. As a contractor, you’re responsible for your own taxes, don’t have access to social security (IMSS), don’t generate seniority, nor have rights to severance or termination compensation for dismissal.

With an EOR, your experience is that of a formal employee with all their benefits:

• Contractual Stability: You have a clear employment contract complying with the LFT.
• Complete Social Security: You contribute to IMSS (medical care, disabilities, pension) and INFONAVIT (housing credit).
• Guaranteed Benefits: You receive year-end bonus, paid vacation, vacation premium, and participate in profit sharing (PTU).
• Punctual, Legal Payroll: Your salary is deposited punctually in your Mexican bank account (pesos), with a payroll receipt stamped before SAT detailing all your earnings and deductions.

Checklist to validate your contract through an eor

Your peace of mind begins with certainty that your labor relationship is solid and transparent. Before signing, or if you already work under this model, verify your EOR complies with these key points. They’re your rights, and a legitimate EOR will facilitate them without problem.

1. Individual Employment Contract: You must have a written contract, governed by Mexico’s Federal Labor Law, not another country’s laws.
2. IMSS Registration: Request your Statement of Contributed Weeks directly on the IMSS portal to verify you’re registered with your real salary.
3. Stamped Payroll Receipts (CFDI): Each payment must be accompanied by an official payroll CFDI, which you can verify on the SAT portal. This is your fiscal proof.
4. Clarity on Benefits: Your contract must explicitly detail year-end bonus (minimum 15 days), vacation period (12 days first year), and vacation premium (minimum 25%).
5. Information About PTU: Ask how they manage Profit Sharing. A professional EOR must have a clear process to calculate and pay it on time (no later than May 31).
6. Clear Communication Channels: You must know who to contact at the EOR for questions about your payroll, vacation, disabilities, or any other administrative topic.

Your key labor rights and how the eor protects them

The Federal Labor Law is your main support. The EOR must not only know it but rigorously apply it. Here we explain how your most important rights materialize in this model.

1. year-end bonus, vacation, and vacation premium

These aren’t optional benefits. The EOR is legally obligated to provision and pay you a minimum of 15 days’ salary as year-end bonus before December 20. Similarly, they manage your right to vacation (which increases with seniority) and corresponding vacation premium payment each time you take them.

2. worker profit sharing (ptu)

This is a constitutional right and one generating most doubts. The EOR, as your legal employer in Mexico, must calculate 10% of their taxable profits and distribute it among their workers. A transparent EOR will explain the mechanism and, if the client company contributes to a fund for this purpose, will ensure you receive it according to law.

3. social security (imss) and retirement savings (sar)

Being registered with IMSS with your real salary is crucial. This not only gives you access to medical services for you and your beneficiaries but also accumulates weeks for your pension and protects you with subsidies in case of disability due to illness or maternity. The EOR makes employer contributions and withholds your worker fees, guaranteeing your continuous coverage.

4. labor relationship termination: severance and settlement

If you decide to resign, the EOR must calculate and pay your severance, which includes proportional parts of year-end bonus, vacation, and vacation premium. In case of unjustified dismissal, as a formal employee, you have right to constitutional settlement, including three months’ salary and other compensation. The EOR manages this process according to LFT, protecting you from improper practices.

The eor’s role in your professional development

Although day-to-day management and growth in your role depend on the international company, a good EOR can be an ally. By ensuring your working conditions are stable and fair, it allows you to concentrate on your professional goals. It frees you from administrative burden and uncertainty that comes with self-employment. A quality EOR offers a solid foundation on which you can build a successful career with a global company, without sacrificing the security and rights corresponding to you in Mexico.

Work globally, with local law protection

The Employer of Record model is a fundamental piece of work’s future. It allows the best Mexican talent to connect with global opportunities without assuming unnecessary risks. By understanding how it works and what your rights are, you can evaluate these job proposals with confidence. It’s not just about a good salary; it’s about stability, social security, and complete support from your country’s labor legislation. An EOR is the guarantee that you can focus on what you do best, with certainty that your rights are protected.

Your global career starts with a solid local foundation

In conclusion, when an international company offers you a position through an Employer of Record, they’re offering a formal, protected labor relationship. It’s confirmation they value not only your talent but also the importance of operating correctly under the Mexican legal framework. Take advantage of these opportunities knowing your contract, benefits, and social security are guaranteed. This structure gives you freedom to compete and grow on the global stage, with peace of mind of having a local safety net protecting your career.

Your career deserves clarity and real support. Our transparent process connects you with teams that value your experience and drive you to grow from day one. Learn how we support you

Glossary

• EOR (Employer of Record) – Your legal employer in Mexico. It’s a Mexican company that formally hires you on behalf of an international company, guaranteeing your payroll, benefits, and LFT compliance.
• LFT (Federal Labor Law) – The law establishing your rights and obligations as a worker in Mexico, including salary, workday, vacation, year-end bonus, and social security.
• IMSS (Mexican Social Security Institute) – The institution providing social security (medical care, disabilities, pension) thanks to fees the EOR pays on your behalf.
• PTU (Worker Profit Sharing) – Your right to receive a part of the profits your legal employer (the EOR) generates in Mexico. Paid annually.
• Payroll CFDI – Digital Fiscal Receipt via Internet. It’s your official payroll receipt, stamped before SAT, that validates your income and deductions legally.
• Severance – Payment you receive upon voluntarily terminating the labor relationship. Includes proportional parts of benefits like year-end bonus and unused vacation.
• Settlement – Compensation corresponding to you by law in case of unjustified dismissal. Includes three months’ salary, seniority premium, and other compensations.

References

1. Congress of the Union. Federal Labor Law (latest reform). ordenjuridico.gob.mx. Accessed on: 09/28/2025.
2. Mexican Social Security Institute. Worker Guide. imss.gob.mx. Accessed on: 09/28/2025.
3. Federal Labor Defense Attorney’s Office. Workers’ Rights and Obligations (2025). gob.mx. Accessed on: 09/28/2025.
4. Tax Administration Service (SAT). Payroll Receipt Viewer for Workers. sat.gob.mx. Accessed on: 09/28/2025.