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 to ensure compatibility between employers and employees. Here’s what firms in Mexico must know about how they work.

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Definition of Probation in Mexico

A probation period is a trial phase, where employers and employees get a taste of what a specific workplace is like before progressing to a permanent relationship. In Mexico, it’s known as a “periodo de prueba” and is defined legally in Article 39-A of the Ley Federal del Trabajo.

The provision states that general roles usually have a maximum probationary period of 30 days, but this may be increased to 180 calendar days for managerial, technical, and specialized roles. Legally, employers must include a written probation clause within the employee’s contract, or it’s legally unenforceable and the relationship will be treated as indefinite from the beginning.

If the probationary period is finished without termination, the contract remains active under the same terms as permanent staff. Employers are not required to do anything else.

Lengths of Probationary Periods in Mexico

Maximum probation periods are 30 calendar days (not business days) for the majority of roles. Either party must simply report that they don’t wish to continue with the relationship. No notice period is legally required to end a probationary period, but written confirmation is.

Roles requiring technical or specialist skills may come with a probationary clause allowing up to 180 days of probation. The one caveat is that the position must require specialized knowledge or managerial responsibilities.

If probation periods aren’t included within the employee’s contract, Mexican law will consider the period to be unenforceable, and the employee will be considered permanent. This gives them full labor protections under the law.

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

Probation periods can only be applied to employment contracts that have a duration of 180 days or more. Short-term contracts are designed for temporary projects, specific tasks, and seasonal work. Any attempt to apply a probation clause is automatically rendered void under the law.

If the fixed-term contract is longer than 180 days, the employer may still apply a probation clause. This would operate under the same duration and conditions of a probationary clause on a permanent contract.

Legal Considerations for Probation Periods in Mexico

Mexican labor law only permits probation periods if it’s explicitly outlined within the employee’s contract. Verbal agreements aren’t considered sufficient, and this would make the worker permanent from their first day of work, with all the protections regarding termination that status comes with.

During probation, workers receive the same rights and protections as anyone else, including the right to be paid at least the minimum wage, protection against workplace discrimination, and social security contributions. The only difference is that workers can be terminated during their probationary periods without the usual notice and a severance package.

Pay and Working Conditions

Probationary employment in Mexico doesn’t change the entitlement to the minimum wage. On January 1, 2025, Mexico increased the general minimum wage by 12%, taking the daily minimum wage to MXN $278.80 and $419.88 within the Northern Border Free Zone. General monthly salaries now stand at an average of MXN $8,364 and $12,596 in the Northern Border Free Zone.

Additionally, probationary workers operate under the same standard six-day working week, comprising 48 hours and the right to overtime pay. Any overtime must be paid at a rate of 200% the base salary for the first nine hours per week and 300% for all hours beyond that, per Articles 61-66 of the Federal Labor Law.

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.

All probationary workers must be registered with the Instituto Mexicano del Seguro Social, which provides healthcare, disability, and maternity payments to workers. Contributions start from the first day.

Termination and Notice

One of the advantages of the probation clause is that it allows employers to go through a simplified termination process if the relationship doesn’t work. Firms may fire probationary workers without any notice period, but there are two requirements that must be met:

  1. The employer must provide written notice detailing that the relationship is being ended because of performance-related reasons.
  2. Performance evaluations must be performed and documented to justify dismissal. Without these, firms could find themselves the victim of a future legal claim.

Lawful terminations don’t entitle probationary employees to any form of severance pay. However, if it’s later discovered that the termination violated Mexico’s labor or anti-discrimination laws, the employee could be entitled to a future settlement.

Vacation and Holidays

Vacation entitlements aren’t available to probationary employees. Likewise, the accrual process doesn’t begin until after the probation phase. In Mexico, employees receive the right to six days of paid vacation time after their first year of service, which increases with each subsequent year.

All employees must receive a day off for public holidays with full pay. These include Independence Day, Labor Day, and Maundy Thursday. Technically, there are ten statutory public holidays, but Presidential Inauguration Day is only celebrated once every six years.

Note that if a vacation falls on a weekend, employers are not required to provide an extra day off. Probationary employees are entitled to a day off on public holidays.

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.