Questions – Answers, Doing business in Mexico

14 11 2006

Have any questions about how to do business in Mexico?

Any specific problems or dilemmas related to doing business in Mexico?

Questions about the business culture in Mexico or Mexican culture in general?

Would you like to know more about a specific theme related to Mexican business?

Need references or information about organizations, people or associations in Mexico?

Send your questions to me at   lee.iwan  at
or post a comment here.

Related Links

How to do business in Mexico

Official government websites of the 32 Mexican States 

The definitive dialing guide for calling Mexico

Shorten your learning curve about Mexico

Business South of the Border



2 responses

19 01 2007
Alex Hoyt

If an employee of 3 years quits. What, by Mexican Law, does the employer owe that employee? Also, how does varying wage increases over that time period come into play?


19 01 2007
Lee Iwan


An employee of 3 years, who quits voluntarily is entitled to accrued vacation time, aguinaldo and profit sharing (reparto de utilidades) in Mexico. There are no other required payments. All calculations are made using the latest wage rate.

When they leave, or shortly thereafter you should pay the accrued vacation and aguinaldo. In your case the full vacation amount for a 3 year employee is 10 days, and the total aguinaldo for the year is minimum 15 days….make you calculations for the time worked by the employee.

Get them to sign a statement that they are leaving voluntarily and receiving the amounts mentioned for the concept of accrued vacation and aguinaldo.

Only your accountant will be able to determine the amount of accrued profit sharing that is due (if the company has not made a profit, this is zero) after the close of your fiscal year.

Be aware this is NOT legal advice, but it is what I would do with an employee who quits after 3 years based upon my experience and understanding of the law in Mexico.

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