What are the types of employment contracts in Mexico, according to the LFT?

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Do you have to sign a contract? These are the types of employment contracts according to the Federal Labor Law. Find out what they are and how many there are in Mexico, according to their employment and duration.

Did you get the yes for the position you requested in a company? After going through a series of exams and interviews that involve starting a new job, the signing of the employment contract will come. What is it and what is its importance in the employment relationship between employer and employee?

All employment, whether temporary or indefinite, requires an employment contract. Every time you start a new job, you must make sure to sign a document establishing the working conditions, since your rights and obligations under the Law as an employee will depend on this.

During this season and vacation periods, it is common to find temporary jobs. To avoid any abuse or violation of your labor rights, we tell you what types of employment contracts exist in Mexico, in accordance with the Federal Labor Law (LFT).

LFT: What is an employment contract?

According to Article 20 of the Federal Labor Law in Mexico, an “Individual employment contract, whatever its form or name, is one by virtue of which a person undertakes to provide subordinate personal work to another, through the payment of a salary.”

In this legal employment agreement agreed upon between the employer or company and the worker, the terms and conditions of the employment relationship are established. So that these are stipulated in the employment contract, thus supporting the rights and obligations of both parties before the Law.

Types of employment contracts in Mexico, according to the Federal Labor Law

According to the LFT in Mexico there are different types of employment contracts, depending on the job requested and the employment relationship stipulated at the time of starting a job. Before signing any employment contract, you must make sure that it fits the position and period of time that you will provide your services in the company.

How many types of employment contracts are there in Mexico?

These are the six types of employment contracts described by the Federal Labor Law, which are differentiated according to the type of work, training or trial period required by the position, as well as the duration of the employment relationship agreed upon at the beginning of employment.

Fixed-term contract

The fixed-term employment contract, as its name indicates, is established according to the duration that the nature of the work requires and is set for specific periods of time. The LFT contemplates it for the following cases:

As required by the nature of the work to be provided. For example, summer or holiday season jobs, which are based on a period of time determined by the season.

When the objective is to temporarily replace another worker. For example, when a worker is hired to cover temporary disability due to an accident or maternity.

In cases provided for in the Law, where due to the circumstances and characteristics of the activities, they can only be carried out for a limited time. For example, the Law refers to work for the exploitation of mines.

Contract for specific work

The contract for specific work contemplates conditions similar to those for a specific time. However, this is used when the activity to be developed is related to a specific project. Upon completion of the work or completion of the agreed deadline, the contract is automatically terminated.

Seasonal contract

Seasonal contracts apply to employment relationships for an indefinite period, but with discontinuous activities, that is, for fixed and periodic tasks or that do not require the provision of services for continuous periods of time.

Therefore, the employer must provide basic labor benefits by law, as part of its legal obligations established in this type of contract.

Contract for initial training

This type of initial training contract is common in companies that require training in the use of specific machinery or software. In this, the worker provides his services to the employer with the objective of acquiring the knowledge and skills necessary to develop all those activities that his position demands.

The maximum duration of the employment contract for training is 3 months. This can be extended up to 6 months in the case of workers for management, direction or administration positions in the company and for those who require specialized professional knowledge. The initial training period is non-extendable.

During the time stipulated in the training contract, workers may enjoy remuneration and social security, as well as labor benefits according to the position they perform.

If the worker does not prove the required competence at the end of his or her training contract, the employment relationship will be terminated. But if, on the contrary, the employment relationship continues, then it will be considered a contract for an indefinite period.

Contract for trial period

As mentioned, in employment contracts for an indefinite period a trial period of no more than 30 days may be agreed upon, if applicable, and depending on the position, up to 180 days.

The objective of this trial period is to verify that the worker has the knowledge and skills necessary to carry out the job and position for which he or she is hired.

The term or follow-up of the contract for a trial period will be in accordance with what is established in the contract for job training. Likewise, the trial period is non-extendable and will be included in the work seniority.

However, this type of contract cannot be entered into simultaneously with the initial training contract.

Contract for an indefinite period

In the contract for an indefinite period, a duration period is not set. So, the employee and employer can maintain the employment relationship for a long time, as long as both parties are satisfied.

Therefore, this type of employment relationship usually includes a trial or initial training period, in order to corroborate that the worker meets the requirements, skills and knowledge necessary to carry out the job requested. To be considered an employment contract for an indefinite period, it must exceed 180 days.

It provides different benefits to workers, such as the extension of labor benefits, such as the payment of bonuses and vacation days. In addition, it provides greater stability and job seniority.

What should an employment contract include?

General identification data of both the employer and the worker

Duration of the employment relationship, established by the type of contract granted by Law

Services provided, that is, the job, the activities, tasks and tasks that the worker will perform

Address of the company or places where the work will be carried out

Duration of the working day, specifying work hours and days of rest

Amount of salary and method of payment, in cases where it may be in cash or by transfer

Day and place of salary payment, that is, whether it will be weekly, biweekly or monthly

Days off

Vacation.

Source: El Financiero