Mexico’s economy has been growing in recent years, with the country harnessing its natural resources and trade agreements in the post-pandemic boom. The United States-Mexico-Canada (USMCA) free trade agreement has lowered business barriers and made the country an attractive proposition for international businesses.

Companies within the country rely on a wealth of highly educated Mexican talent to fuel their growth. As demand increases, businesses must tread carefully when it comes to who they bring onto their respective teams, and that’s where the probation periods come in.

These are legally permitted for businesses hiring in Mexico to ensure compatibility between employers and employees. Here’s what firms in Mexico must know about how they work.

Definition of Probation in Mexico

A probation period in Mexico (known as a “periodo de prueba”) is a legally permitted trial phase that allows employers and employees to assess suitability at the beginning of an employment relationship. Probation periods are governed by Article 39-A of the Federal Labor Law (Ley Federal del Trabajo).

For most roles, the maximum probationary period is 30 calendar days. For positions that require managerial responsibility, technical expertise, or specialized professional knowledge, probation may extend up to 180 calendar days, provided this is justified by the nature of the role.

To be valid, the probation clause must be expressly included in the written employment contract. If no probation clause exists, the employment relationship is deemed indefinite from the first day, and the employee is entitled to full statutory protections.

If the probationary period concludes without termination, the employment relationship continues automatically under the same terms as an indefinite contract, without the need for any additional documentation.

Lengths of Probationary Periods in Mexico

The legally permitted probation periods are:

Role Type Maximum Probation Period
Most roles Up to 30 calendar days
Managerial, technical, or specialized roles Up to 180 calendar days

Probation periods are measured in calendar days, not business days. Mexican law does not permit:

  • Multiple probation periods for the same employee
  • Repeated short-term contracts used to avoid indefinite employment

Any such practices may be treated as an attempt to circumvent labor protections and can expose employers to legal claims.

Permanent or Indefinite Contracts

In Mexico, there’s only a single form of probation, and it only applies to permanent or indefinite contracts. By Mexican standards, these are contracts that are longer than 180 days. At the end of the probation period, the employee automatically receives an indefinite contract without any further intervention, unless they are terminated first.

Under Mexican law, employers are not permitted to offer repeated short-term contracts or utilize more than one probation period. This is considered to be a deliberate attempt to avoid forming a permanent employment relationship and is a legal violation.

Fixed-Term or Definite Contracts

Fixed-term contracts are permitted only where the temporary nature of the work is objectively justified (e.g. specific projects, seasonal work). As a general rule:

  • Probation clauses are not appropriate for short fixed-term contracts
  • Attempting to combine probation with fixed-term arrangements may render the probation clause unenforceable

Because misuse of fixed-term contracts is a common source of labor disputes, legal advice is recommended before applying probation clauses outside standard indefinite contracts.

Legal Considerations for Probation Periods in Mexico

A probation period is valid only if it is explicitly stated in the written employment contract, the role qualifies under Article 39-A of the LFT, and the employee is registered with IMSS from day one.

During probation, employees retain the same fundamental labor rights as permanent staff. This includes payment of at least the statutory minimum wage, social security registration and contributions, protection against discrimination and harassment, and statutory working-time limits and rest days.

A probation clause does not suspend labor protections. It only affects how termination risk is assessed during the trial period.

Pay and Working Conditions

Probationary employees must be paid no less than the applicable statutory minimum wage, as set annually by the National Minimum Wage Commission (CONASAMI). Minimum wage rules apply fully during probation.

Working-time rules during probation are the same as for permanent employees, including:

  • Maximum working hours by shift type
  • Entitlement to weekly rest days
  • Overtime premiums

Overtime must be paid at:

  • 200% of the regular wage for the first nine overtime hours per week
  • 300% of the regular wage for any overtime beyond nine hours per week

All probationary employees must be registered with the Instituto Mexicano del Seguro Social (IMSS) from their first day of work, and social security contributions must be made accordingly.

Note that a bill is pending to reduce the standard working week from 48 hours to 40 hours, but no timeline on approval or implementation is available, as of mid-2025.

Termination and Notice

Probation allows employers to terminate the employment relationship during the trial period if the employee does not meet performance or suitability expectations. However, termination is not informal or risk-free.

To reduce legal exposure, employers should:

  • Provide written notice stating that the employment relationship is ending during the probation period
  • Ensure termination decisions are non-discriminatory
  • Maintain documented performance evaluations or assessments supporting the decision

While probation can reduce severance exposure, improperly handled terminations may still result in claims for reinstatement, severance, or damages—particularly where discrimination or procedural defects are alleged.

Vacation / Holidays

Vacation entitlement in Mexico is based on length of service, not on successful completion of probation.

  • Vacation days begin to accrue from the start of the employment relationship
  • Employees become entitled to take statutory vacation after completing their first year of service
  • As of current law, employees are entitled to at least 12 paid vacation days after one year, with increases over time

The existence of a probation period does not suspend vacation accrual.

Probationary employees are entitled to paid statutory public holidays on the same basis as permanent employees.

If a probationary employee is required to work on a mandatory public holiday, they are entitled to the applicable premium pay under the Federal Labor Law.

Benefits of Probation Periods in Mexico

The purpose of probation is to provide a trial phase for Mexican employers and employees. It gives both sides a chance to assess the suitability of a future relationship while breaking down barriers to separation. Some of the advantages of probation for both sides include:

  • For Employees

Employees are not required to provide a full commitment to their employee, allowing them to experience the workplace before deciding whether to proceed with the relationship.

Employees have no barrier to resignation and continue to receive the national minimum wage and social security contributions in the meantime.

Employees may resign with no need to provide notice if the role doesn’t meet their expectations.

  • For Employers

Employers receive a short period to assess a new hire’s performance, skills, and whether they are a good fit within their existing workplace culture.

Employers are not required to provide a severance package and may terminate probationary employees for performance-related issues with minimal notice.

Employers avoid the legal and financial risks that come with new hires by receiving this formal test period.

Conclusion

Businesses entering the Mexican market for the first time must be aware of the country’s strict worker-friendly labor laws. There have been substantial changes in recent years to provide more rights to employees, which can mean businesses are often left struggling to achieve compliance.

At Remote People, we negotiate compliance issues, manage paperwork, and ensure your hires receive the legal protections they’re entitled to.

If you’re ready to hire high-performance Mexican talent in a growing market, let Remote People be your hiring, onboarding, and compliance partner. To learn more, schedule your consultation today.

Frequently Asked Questions

Most probation periods in Mexico are limited to 30 calendar days. Where specialist and managerial-level roles are concerned, these probation periods may be extended to 180 calendar days. Firms should be aware that probation clauses cannot be applied to short-term contracts of less than 180 days.

Yes, probationary workers must be paid the legal minimum wage, even during their trial phase. The current daily minimum wage is MXN $278.80 throughout most of the country, with the Northern Border Free Zone having a daily minimum wage of MXN $419.88.

Mexico requires a formal written notice of termination even for probationary employees. Employers don’t have to pay severance, but they must provide justification for their decision, and it must be related to a performance issue. Any other reasons for termination may result in future labor disputes.