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DianaT
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Mexican Labor Laws--
This is not about ex-pats, it is about hiring Mexican Citizens. I have read and heard so many different opinions about this, that I hope someone like
Jesse who has a business can clarify these questions.
What are the rules for paying the worker's social security under the following situations.
1. You hire a person to do major construction, or work for you on a regular basis, I assume you are responsible for the social security???
2. You hire a contractor to build for you and he hires the workers and he pays the social security, what are your responsibilities??
3. You hire a person who calls themselves a contractor, he hires the workers but does NOT pay their social security, what are your responsibilities??
4. You hire a person for a small job, let's say a plumbing repair, and that person is fully employed elsewhere where they receive social security,
what are your responsibilities??
5. You hire a handy-man who makes a living doing small jobs and has no social security. What are your responsibilities?
What are the labor laws?
Thanks
Diane
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Dave
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Unless you have a written agreement that specifies a contractor or independent will pay SS then you are responsible.
| Quote: | Originally posted by jdtrotter
1. You hire a person to do major construction, or work for you on a regular basis, I assume you are responsible for the social security???
<Unless that person has a taxpayer ID and assumes written responsibility you are obligated.>
2. You hire a contractor to build for you and he hires the workers and he pays the social security, what are your responsibilities??
<The contractor must provide his taxpayer ID, documentation that they are his employees and that he pays workers SS. You must have a written
contract stating he will pay their benefits. My accountant requires I issue a separate check made out to employee benefits listing each
worker.>
3. You hire a person who calls themselves a contractor, he hires the workers but does NOT pay their social security, what are your responsibilities??
<you're stuck>
4. You hire a person for a small job, let's say a plumbing repair, and that person is fully employed elsewhere where they receive social security,
what are your responsibilities??
<You're required to pay your portion of SS. Again, it's best to issue separate checks. You can cash them yourself but you'll have a written
endorsement.>
5. You hire a handy-man who makes a living doing small jobs and has no social security. What are your responsibilities?
<Short term? Then see above.>
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JESSE
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Dave is right, but one thing to consider is that Baja California Sur, is far worst than Baja Norte concerning labor laws. I have seen things here that
i never saw back north.
1.-Locals here consider suing their boss for whatever they can think of right or wrong, the estate sport. This is unfortunately having serious
repercussions for the locals. Nobody wants to hire them and prefer to bring people from other states.
2.-Unions here are extremely stupid and corrupt. Right now here in La Paz, we have a case where a union is threatening a business with closure, unless
the business becomes unionized. Problem is, neither the business, nor the workers, want a union.
So if you hire a contractor, make sure there is a document that makes it very clear he has responsability for social security, infonavit, insurance,
and local, estate, and federal taxes and requirements. Its going to cost you more, but when the thieves come, you will be semiprotected.
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Dave
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| Quote: | Originally posted by JESSE
1.-Locals here consider suing their boss for whatever they can think of right or wrong, the estate sport. This is unfortunately having serious
repercussions for the locals. Nobody wants to hire them and prefer to bring people from other states.
<That's why it's important to protect your assets. Winning a suit only matters if there's a reward.>
2.-Unions here are extremely stupid and corrupt. Right now here in La Paz, we have a case where a union is threatening a business with closure, unless
the business becomes unionized. Problem is, neither the business, nor the workers, want a union.
<No white unions down there? My employees belong to a union...Mine.>  |
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DENNIS
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The northern end of Baja won't have stringent enforcement of laws regarding labor between U.S. expats and employers. North Baja allows for the fact
that tight labor laws might be enforced in kind in the US. They wont take that chance.
[Edited on 7-25-2009 by DENNIS]
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noproblemo2
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| Quote: | Originally posted by DENNIS
The northern end of Baja won't have stringent enforcement of laws regarding labor between U.S. expats and employers. North Baja allows for the fact
that tight labor laws might be enforced in kind in the US. They wont take that chance.
So in Norte these rules/laws do not apply?
[Edited on 7-25-2009 by DENNIS] |
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DENNIS
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I didn't say that. Read my post.
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irenemm
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labor laws
the labor laws are the same in the north and the south as the laws are federal. even if you have seguro (social security)
they can still sue you for lots of stuff. try and fire one even if caught stealing your gonna have to pay them off. been ther done that.
the union can come in if you have more than 14 employee and you are pretty much screwed. if you have no money and you need to close your business your
employee can get the inventory and sell it so they will be paid all monies owed to them. they have the right to vacation owed to them, profit sharing,
christmas bonus, time worked. which is after 28 days are your for life. after 5 days they must have social security. severance pay is either 12 or 15
days pay for every year they worked for you and on that the vacation is added by the yeard they worked also.1st year 6 days 2nd 8, 3rd 10 4th12 up to
14 days with 25 to 30 20 days. with additional bonus for the vacation. if the US had most of these laws most business would have a hard time staying
open .have been in business here for 30 years. we never go over 14 employees. we stick with the law it is better than being sued by the worker as I
have been many time . they told my husband to keep me out of the business as i have a pretty bad temper. don't like lazy or dumb. so i read this so we
can keep our stuff.
good luck if you hire someone. get the contract looked at by a lawyer spend the money be safe.
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irenemm
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labor laws
oh i forgot with the servance pay it is 3 months pay plus the days for the years worked with you
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squid
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o.k., I do understand the issue (I guess). One question remains to me anyway:
You hire the workers > you pay for everything (labor, benefits, Insurance, SS etc)
You hire a general contractor > he pays for everything if the contract says so > and charges you.
What's the difference? Other than you have to pay the general contractors profit on top?
One more issue: No contractor, YOU gotto supervise all workers.
Is a contractor responsible for any mistakes made by his workers (let's say: building a house)
What are the responsibilities of an architect? Just making the plan and that's it, or what? Does it depend on the contract as well?
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monoloco
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If your contractor is the one paying the benefits to the workers don,t just take his word that he has paid them. Ultimately you are the one
responsible, if he has not paid they will come back to you no matter what agreement you had with your contractor. They have been known to come back
and demand payment long after the job is finished.
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osoflojo
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I cant say what the state of the law is now but in the 90's when I had a small bus, my accountant had a "contract" for employees to sign that waved
their rights for employer contribution to SS in exchange for a different pay scale. I have no idea if this is still the case.
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JESSE
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| Quote: | Originally posted by irenemm
the labor laws are the same in the north and the south as the laws are federal. |
Yes, but judges, people, corruption, vary widely from state to state. It would be unwise to think its the same everywhere.
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jls
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I still don't understand what if it is just a small job being done for you...like putting in a water line, laying some tile, etc. If they are only
working for you for a day or a week how do you handle the ss and insurance ?
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monoloco
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If it is something small I don't worry about it too much. You can be on the hook for a lot though if you have a crew building a house or you have a
gardener or a maid that work for you over a long period.
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squid
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| Quote: | Originally posted by jls
I still don't understand what if it is just a small job being done for you...like putting in a water line, laying some tile, etc. If they are only
working for you for a day or a week how do you handle the ss and insurance ? |
On a regular base the guy working for you just for a day or two, is employed elsewhere. He might come also for several days or weeks, but then he
comes mostly 'after hours'. Which is an indication that he is employed elsewhere. So there is no SS or such things for you to pay.
The issue under this topic is focused on guys working for you as their main job -- as far as I understand this topic.
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DianaT
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Some of my original questions have been answered differently by different people.
Seems to be agreement only on if a person works for you full time or doing a big job, then the ss has to be paid, unless one hires a contractor who is
paying the ss.
The questions about small jobs by people not receiving ss elsewhere and small jobs by people receiving ss benefits from a full time employment have
more than one answer.
I suspect that some of it is a matter of practice---not necessarily the law.
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vandenberg
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Even if you do business with a contractor who "CLAIMS" that the S.S is taken care off by him, make sure to check with the appropriate office to make
sure.
Heard of more then a few folks who, at completion of their project, got stuck for many thousands of dollars in S.S fees. The government is fairly
adamant in pursuing this matter and the project owner, usually gringo, is liable.
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Dave
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| Quote: | Originally posted by squid
On a regular base the guy working for you just for a day or two, is employed elsewhere. He might come also for several days or weeks, but then he
comes mostly 'after hours'. Which is an indication that he is employed elsewhere. So there is no SS or such things for you to pay.
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Then you'd better pray he doesn't get injured on the job. 
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LB
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There are cases of "housekeepers" going after their SS. How do you pay SS
for a gardener that comes once a week and your paying in cash?
The Government SS squad is checking on permits acquired from 2004 and up to check that SS was paid and leaving summons on front doors of boarded up
houses, giving 6 days to provide proof of payments or a hefty fine. This is from La Paz To Cabo, Gringo or Mexican.
I find it in my best interest to have all my t's crossed. Who knows when my gardener
gets to old to work and finds himself with no SS and reports all his years of
prior work...I'd hate to see the bill. Guess it is another trip to the account
to cover my bases.
We have to pay SS to our household hired help, so why not Mexico. Can't
be to much at 250.00 pesos a day once a week. 
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