Understanding Mexico's Telework Policy: Legal Framework, Employer Obligations, and Best Practices
What Is Considered 'Teletrabajo' or Home Office in Mexico?
The Mexican government approved the creation of a legal framework for teletrabajo (remote work or home office) as a recognized work modality. These new provisions are not a result of the pandemic; rather, they were in development prior to COVID-19 and are intended to regulate remote work as a formal employment structure.
Importantly, occasional work-from-home days or hybrid arrangements do not qualify as teletrabajo under the law. The regulation applies only if more than 40% of the work is consistently performed remotely—in which case, the teletrabajo rules must be followed.
This clarity is particularly valuable for international businesses hiring remote workers in Mexico, ensuring full legal compliance from the start.
When Does the Telework Law Apply?
Temporary remote work due to emergencies does not mean the employment relationship is governed by the teletrabajo figure. Once normal operations resume and employees return to onsite work, those rules no longer apply.
If, however, an employer decides to formally transition an employee to a teletrabajo modality, the change must be agreed upon in writing with specific terms and conditions. This is critical knowledge for foreign companies hiring remote staff in Mexico and structuring long-term remote roles.
Key Provisions of Mexico's Telework Law
-
Voluntary Agreement:
-
Employees cannot be forced into teletrabajo. It must be voluntary.
-
Employees also retain the right to revert to onsite work unless originally hired under a teletrabajo scheme.
-
-
Original Work Modality:
-
If an employee is hired under a teletrabajo scheme from the start, they may not demand to work onsite.
-
-
Future Regulations:
-
The Ministry of Labor (STPS) will issue a new NOM (Official Mexican Standard) within 18 months to establish detailed occupational safety and health standards for teletrabajo.
-
Employer Obligations Under Teletrabajo
Employers in Mexico must:
-
Provide, install, and maintain necessary work equipment (e.g., computer, ergonomic chair, printer).
-
Pay salaries on time and in the agreed-upon manner.
-
Cover remote work expenses, including a proportional share of electricity and telecommunications.
-
Track all materials and tools provided to the employee.
-
Ensure information security through proper data protection measures.
-
Respect the right to disconnect after work hours.
-
Enroll teletrabajo employees in the mandatory social security regime.
-
Provide training and technical support, especially for employees transitioning from onsite to remote work.
These requirements should be built into employment policies when hiring remote workers in Mexico to prevent compliance risks.
Employee Obligations Under Teletrabajo
Employees are expected to:
-
Take proper care of equipment and tools provided.
-
Report costs related to telecommunications and electricity in line with pre-agreed terms.
-
Follow occupational safety and health guidelines established by the employer.
-
Cooperate with remote supervision systems.
-
Adhere to data protection policies, including usage and storage restrictions.
Prodensa’s Tips for Managing Telework Contracts Effectively
To stay compliant and create a sustainable remote work environment, Prodensa recommends:
-
Drafting Clear Contracts: Include specific terms about duration, responsibilities, reversibility, and reimbursement policies.
-
Conducting Site Evaluations: Assess the home office setup for ergonomic safety and security compliance.
-
Establishing Communication Protocols: Define expectations for hours, availability, and reporting.
-
Training and Onboarding: Provide tools and guidance for new remote employees.
-
Legal and HR Alignment: Ensure your HR policies align with the new teletrabajo law and are supported by legal counsel.
For end-to-end support, from policy consultation to compliant onboarding and payroll management, Prodensa’s flagship Mindfacturing® service—a binational Employer of Record (EOR) platform—makes hiring remote teams in Mexico and building compliant remote operations seamless.
Mindfacturing®: The Future of Nearshoring
One of PRODENSA's turnkey operations models, Mindfacturing® provides a streamlined solution to hire employees in Mexico for corporate functions without incorporating an entity or being a direct employer. The solution serves for hiring single experts, or to build teams in Mexico.
👉 Turnkey Employment Solutions in Mexico: Meet Mindfacturing®
👉 Everything you Need to Know About EOR in Mexico
Nearshoring Services Hub with Export Incentives
Mexico offers a powerful framework for companies looking to nearshore remote or support service teams through its IMMEX Services Program. By establishing operations under this model, companies can access significant VAT exemptions and tax advantages when exporting services like engineering, finance, IT, and customer support. When paired with Mexico’s skilled labor force and geographic proximity to North America, this structure creates a cost-effective and compliant foundation for building high-performance remote teams that serve global markets.
How Global Companies Benefit from Hiring Remote Teams in Mexico
From tech startups to multinational corporations, more companies are discovering how remote operations in Mexico can boost efficiency, reduce costs, and improve cross-border collaboration.
Strategic Location and Cultural Compatibility
Mexico offers a unique advantage for global companies thanks to its time zone alignment with North America, which facilitates real-time communication and smoother project workflows. Additionally, the country’s strong business ties with the U.S. and Canada foster a high level of cultural compatibility and bilingual talent, making integration into international teams easier. Whether it's IT support, back-office operations, or creative services, Mexico’s talent pool is well-equipped to work across borders and meet global expectations.
Cost Efficiency with Competitive Talent
Hiring in Mexico allows companies to access highly skilled professionals at competitive rates, especially in fields like software development, engineering, design, and finance. Labor costs can be up to 40–60% lower than in the U.S. without sacrificing quality. Remote hiring also reduces overhead by eliminating the need for physical office space while taking advantage of programs like IMMEX for services, which can provide additional tax incentives when structured properly.
