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FAQ Intugo

Frequently Asked Questions

Get clear answers about how Intugo works and what nearshore outsourcing benefits to expect when expanding to Mexico.

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Recruitment

How does Intugo manage the Recruitment Outreach?

We use multiple channels to reach qualified candidates, including:

  • Social media and online job boards
  • Newspapers, radio, and outdoor advertising
  • Job fairs and field recruitment
  • Partnerships with universities, training centers, and government agencies
  • Employee referral programs
  • Walk-in applications

We keep clients informed throughout the recruitment process. With their approval, we can promote employment opportunities under their brand. All branded materials must be reviewed and approved by the client before use.

What do we need to know about selecting and hiring candidates?

Interviews and Assessments

We can adjust the interview process based on your needs.

Intugo can provide general screening tests. If the position requires a specialized assessment, you may need to provide it. Together, we will determine which interviews and tests are appropriate for each position.

 

Hiring and Documentation

Once you select a candidate, our HR team will collect the documents needed for hiring:

  • Identification and travel documents
  • Professional references
  • Drug test results
  • Background checks
  • Proof of academic degrees

 

Intugo manages the legal hiring process in Mexico. Each new employee signs an employment contract and the company’s internal workplace rules in accordance with Mexican labor law. We can also include your documents, such as non-disclosure agreements and operational policies, as long as they meet local legal requirements. Intugo maintains a complete file for each employee.

How are employee contracts managed with Intugo?

New employees start on an initial contract with a probation or training period:

  • Training Period: 30–90 days for general positions (up to 180 days for specialized or managerial roles).

  • Probation Period: 30 days for general roles (up to 180 days for specialized or managerial roles).

These periods are non-renewable and cannot be combined. Once completed successfully, the employment automatically transitions to a permanent contract. If the employee does not meet expectations during this period, employment can be terminated without severance liability.

What is Intugo's approach to contract termination in Mexico?

Severance is a legal obligation in Mexico when an employee is terminated without cause. It includes a payment of:

  • Three months’ salary at the employee’s most recent pay rate.
  • 12 days’ pay per year of service (capped at two times the minimum wage).
  • An additional 20 days’ pay per year of service if the employee sues for reinstatement and a court rules in their favor.

 

Grounds for Justified Termination

Under Article 47 of the Mexican Federal Labor Law, an employee can be terminated without severance for specific, justified reasons. These reasons include:

Dishonesty and Misconduct
  • Providing false information on a resume or with certifications. (Note: this reason is only valid for the first 30 days of employment).
  • Committing dishonest or violent acts against the employer, their family, or management, either inside or outside the workplace, if severe enough to disrupt the working relationship.
  • Engaging in violent or dishonest acts against a coworker that disrupt workplace order.
  • Engaging in immoral acts at the workplace.
  • Revealing industrial secrets or confidential company information.

 

Workplace Damage and Safety Violations
  • Intentionally causing damage to company property, machinery, or materials.
  • Causing serious damage through gross negligence.
  • Endangering the safety of the workplace or others through recklessness.
  • Arriving at work intoxicated or under the influence of drugs without a doctor’s prescription.

 

Disciplinary and Contractual Violations
  • Having more than three unexcused absences in a 30-day period.
  • Refusing to follow employer instructions without a valid reason.
  • Failing to follow safety and preventative health measures.
  • Being sentenced to prison in a way that prevents the employee from fulfilling their contract.

These grounds, along with other similar, serious violations, provide a clear legal basis for termination.

What are the steps in Intugo's screening process?

First, Intugo’s recruitment team reviews each candidate based on your job description. Candidates who meet the requirements complete an interview with our recruitment team and any tests required for the position.

 

We then use AI to organize the candidates based on how well they match your requirements. Our recruiters review the results and only send you candidates who meet the criteria. You receive a report with information about each candidate.

 

You choose who you want to interview and make the final hiring decision. If needed, we may recommend adjustments to the job requirements to broaden the candidate pool.

How Does Employee Onboarding Work?

Intugo provides an orientation for each new employee. We explain that Intugo is their legal employer and manages contracts, payroll, HR support, and internal communication. We also review workplace processes, introduce the client’s work culture, and provide a facility tour.

After this session, we recommend that a supervisor from your company provide role-specific training and explain your team’s processes, tools, and expectations.

Do I need a legal entity to outsource in Mexico?

No. Many companies use our established structure in Mexico to launch faster without creating their own legal entity. This flexibility is one of the key competitive advantages companies gain when expanding operations through our nearshore model.

Work Schedule

What is the Proper Way to Accommodate Work Schedules?

Mexican labor law recognizes three work shifts:

  • Day shift: Between 6:00 a.m. and 8:00 p.m. Maximum of 8 hours per day.
  • Night shift: Between 8:00 p.m. and 6:00 a.m. Maximum of 7 hours per day.
  • Mixed shift: Includes both day and night hours. Maximum of 7.5 hours per day.

A mixed shift with 3.5 or more night hours is considered a night shift.

The weekly limit is 48 hours in 2026. It will decrease by two hours each year until reaching 40 hours in 2030.

What are the Proper Time Frames for Lunch and Breaks at Intugo?

Employees working a continuous shift receive a break of at least 30 minutes.

 

If employees must remain at the workplace or stay available during the break, that time counts as part of their working hours. If they are free to leave and use the time as they choose, it generally does not.

 

Additional breaks, such as two 15-minute breaks, are not required by law but may be included as part of the client’s work policy.

 

Schedules that exceed the daily limit may include overtime. Intugo reviews these schedules to confirm that they meet Mexican labor requirements.

How are Schedule Changes Handled in Mexico With Intugo?

Under Mexican Labor Law, fixed work schedules cannot be changed unilaterally. Schedule adjustments are handled based on the employee’s contract type:

  • Fixed Schedules: Permanent changes to fixed schedules require mutual consent and a signed addendum. Intugo recommends providing at least one to two weeks’ notice to manage this process smoothly.

  • Rotating Shifts: If operational needs require ongoing flexibility, the initial employment contract must explicitly include a rotating shift clause.

 

Intugo’s HR team ensures all contract terms align with your operational needs while keeping your business fully compliant.

Does Intugo Have a Time Keeping System?

Yes. Employees clock in when they arrive and clock out when they leave. Depending on the operation, they use an Intugo ID card or facial recognition.

Employees do not clock in or out for lunch or breaks.

Medical Leave Coverage with IMSS

Medical leave in Mexico is regulated and issued exclusively by the Mexican Social Security Institute (IMSS). Benefits depend on the classification of the leave:

General Illness (Non-Work-Related):

  • Days 1 to 3: Unpaid by both the employer and IMSS, but the absence is legally justified.
  • Day 4 onward: IMSS pays 60% of the employee’s registered salary directly to the worker.

Workplace Risk / Occupational Injury:

  • Applies to accidents or illnesses directly related to work activities.
  • IMSS covers 100% of the employee’s salary from Day 1.
  • Note for employers: Occupational risk claims directly impact and may increase the employer’s annual IMSS risk premium rate.

 

Maternity Leave:

  • Female employees are entitled to 84 calendar days of fully paid maternity leave.
  • IMSS covers 100% of the employee’s salary during this period, provided the worker meets standard IMSS contribution requirements.
Can You Work Part-Time or Adjust Your Days at Intugo?

We offer flexible scheduling options to accommodate various employee needs.

 

Compressed Workweek: Employees can sign an agreement to work their total weekly hours in fewer than six days, provided the overall number of hours remains the same.

 

Part-Time Employment: A full-time employee can transition to a part-time schedule by formally resigning from their full-time contract and signing a new part-time one.

 

Sunday Pay: If an employee’s regular schedule includes Sunday, they are entitled to a 25% bonus on their base daily salary for that day, as well as an alternate designated rest day during the week.

Is There any Flexibility in Arranging Schedules with Employees?

Our HR department can draft customized schedule agreements to align with your specific operating hours. A common agreement we use is the “9.6-hour shift” for day-shift employees. Under this arrangement, employees work 9.6 hours per day for five days a week. The extra 1.6 hours worked each day are not considered overtime. Instead, they are accumulated to provide the employee with an extra day off, effectively condensing a six-day workweek into five.

 

By signing this agreement, the employee acknowledges that the extra hours worked daily are in exchange for the benefit of an additional day of rest.

What Holidays are to be observed?
  • January 1st (New Year’s Day)

  • First Monday of February (Constitution Day)

  • Third Monday of March (Benito Juárez’s Birthday)

  • May 1st (Labor Day)

  • September 16th (Independence Day)

  • Third Monday of November (Revolution Day)

  • December 25th (Christmas Day)

  • October 1st (Every 6 years for the Presidential Transition)

  • Days established by official electoral authorities for election days.

 

If operational needs require employees to work on an official Mexican holiday, Article 75 of the LFT dictates that employees are entitled to receive their regular daily wage plus a double daily wage for the time worked (effectively receiving triple pay for that day).

For clients operating on US business calendars, Intugo’s HR team implements structured agreements during onboarding to align operational coverage while ensuring full compliance with statutory holiday compensation requirements under Mexican law.

What Types of Absenteeism Scenarios can we Expect?
  • Unjustified Absence: Failing to report to work without notice or medical justification. Under Article 47 of the LFT, more than 3 unjustified absences within a 30-day period constitute legal grounds for termination without severance (written proof required).

  • Justified Absence (Unpaid/Paid): Absences approved by the client/HR with or without pay depending on the policy.

  • Tardiness: Arriving past the grace period. Depending on company policy, late employees may either be turned away (resulting in an unjustified absence) or allowed to work with adjusted time tracking.

  • Medical & Maternity Leave: Formal medical leave issued and covered directly by the Mexican Social Security Institute (IMSS).

  • Vacation & Mandatory Holidays: Standard statutory time off accrued by law or allocated within the hourly rate framework.

Maternity, Paternity & Adoption Leave Regulations

Maternity Leave (Biological):

  • Duration: 84 calendar days (typically 6 weeks before and 6 weeks after birth, or taken as a consolidated 84-day block).
  • Salary Coverage: 100% of integrated salary covered by IMSS (requires 30 weeks of IMSS contributions in the prior 12 months). If the employee does not meet IMSS tenure requirements, the employer must cover the salary (Art. 103 IMSS Law).
  • Lactation Period: Two daily 30-minute breaks or a 1-hour reduction of the workday to feed her newborn, for up to 6 months after birth.

Adoption Leave:

  • Female Employees: Entitled to 6 weeks of paid leave following the placement of the adopted child.
  • Male Employees: Entitled to paid leave for adoption, covered under paternity guidelines.

 

Paternity Leave (Birth or Adoption):

  • Male employees are entitled to paid paternity leave fully paid by the employer upon the birth or adoption of a child.

Payroll

What do I Need to know about Salaries in Mexico?
  • Daily Wage Definition: Under Mexican Labor Law, salaries must be formally specified as a Daily Salary (Salario Diario) in the employment contract. To convert a monthly salary to a daily rate, the standard formula uses an average of 30.4 days per month.

  • Minimum Wage Compliance: Salaries in Mexico are subject to the official National Minimum Wage (Salario Mínimo General), which is updated annually by the government. Intugo ensures all employee compensation strictly complies with or exceeds current statutory minimums.

  • Salary Adjustments: Salaries may be increased at any time but cannot be reduced under any circumstances without creating significant legal liability for the employer.

  • Annual Inflation & Wage Expectations: Customarily, employees expect an annual cost-of-living adjustment to keep pace with national inflation trends.

  • Rest Day Payment: The standard workweek model includes a fully paid mandatory rest day (typically Sunday). Intugo incorporates rest day compensation directly into your transparent hourly rate structure.

How is Overtime Paid at Intugo?

Overtime is processed strictly when pre-authorized by the client and is calculated on a weekly basis in full compliance with Mexican Labor Law (LFT):

  • First 9 Overtime Hours: Paid at double the regular hourly rate (up to 3 hours per day, 3 times a week).

  • Beyond 9 Overtime Hours: Any additional overtime exceeding 9 hours in a single week is paid at triple the regular hourly rate.

 

Note: The Intugo shelter administrative fee applies on a standard per-hour basis.

How does Payroll Work at Intugo?

Payroll Process and Accuracy Our HR department calculates payroll using time-keeping records and verified attendance logs. Before payments are processed:

  • Employees review and approve their weekly hours to ensure accuracy.

  • Clients receive a detailed summary report for final review, which mirrors the billable hours on their invoices.

  • Net salaries are deposited directly into each employee’s designated bank account via direct deposit.

 

Payroll Schedules Intugo operates two payroll schedule models depending on the position type:

  • Weekly Payroll: Salary and hour-based payments are deposited every Friday for the hours worked during the previous week.

  • Biweekly / Fortnightly Payroll: Payments are deposited every two weeks (biweekly) or twice a month (quincenal) for administrative and specialized personnel.

Maternity Guidelines

Pregnancy leave

Female employees are entitled to 84 calendar days of paid maternity leave.

  • Salary Coverage: The employee receives 100% of her integrated salary during this period, which is paid directly by the Mexican Social Security Institute (IMSS), provided she meets the statutory contribution requirements (at least 30 weeks of IMSS contributions within the prior 12 months).

  • Employer Protection: If the employee does not meet the minimum IMSS contribution period, Mexican law requires the employer to cover the full salary during the 84-day leave.

What are the IMSS Eligibility Requirements for Paid Maternity Leave (Article 102)?

To receive fully paid maternity leave directly funded by the Mexican Social Security Institute (IMSS), the employee must fulfill all of the following statutory requirements:

  • Contribution Requirement: The employee must have at least 30 weeks of IMSS contributions recorded within the 12 months prior to the start of the maternity leave.

  • IMSS Medical Certification: The pregnancy and expected due date must be formally certified by an official IMSS physician.

  • Work Restriction: The employee must strictly refrain from performing any paid work during the entire 84-day leave period.

How Does IMSS Regulate Maternity Leave Pay and Duration (Article 101)?

Under Article 101 of the Social Security Law (IMSS Law), maternity leave payments and extensions are managed as follows:

  • 100% Salary Coverage: IMSS covers 100% of the employee’s registered integrated salary for a total of 84 calendar days (traditionally split as 42 days pre-natal and 42 days post-natal).

  • Consolidated 84-Day Option: Employees can opt to take their maternity leave as a single, continuous 84-day period without filing separate pre- and post-birth paperwork.

  • Extended Medical Leave: If an employee requires additional medical leave beyond the 84-day statutory period, IMSS reclassifies the extension as General Illness (Enfermedad General), which is paid at 60% of the salary starting from the 4th day.

What Happens If IMSS Requirements Are Not Met, and What Are the Adoption/Paternity Rules (Article 103)?
  • Employer Responsibility for Maternity Pay: Under Article 103 of the IMSS Law, if a pregnant employee does not meet the minimum 30-week contribution requirement for IMSS coverage, the employer is legally required to pay 100% of her salary during the mandatory 84-day leave.

  • Paternity Leave (Male Employees): Male employees are entitled to 20 business days of fully paid paternity leave upon the birth or adoption of a child, fully covered by the employer.

  • Adoption Leave (Female Employees): Female employees are entitled to 6 weeks of fully paid leave following the placement of an adopted child. This leave is covered by IMSS if eligibility requirements are met, or by the employer if the worker does not qualify under IMSS rules.

ADDITIONAL QUESTIONS

What is the Role of IMSS (Mexican Social Security Institute) in Mexico?

The Mexican Social Security Institute (IMSS) is the primary public institution for social security and healthcare in Mexico. By law, all employers must formally register their employees with IMSS.

Intugo manages all IMSS administrative requirements, including employee registrations, salary reporting, and compliance updates. Through IMSS, employees receive:

  • Official Medical Leaves: Exclusive issuance and funding for illness, maternity, and occupational injury leaves.

  • Healthcare Services: Comprehensive medical and hospital care for employees and their direct families.

  • Social Benefits: Access to public daycare centers (guarderías), disability coverage, and retirement benefits.

SAR

SAR (Sistema de Ahorra para el Retiro) = National Retirement Fund

How Does the Christmas Bonus (Aguinaldo) Work in Mexico?

Under Article 87 of the Mexican Federal Labor Law (LFT), all employees are entitled to an annual mandatory year-end bonus known as Aguinaldo:

  • Statutory Minimum: The bonus must equal at least 15 days of the employee’s base daily salary.

  • Payment Deadline: By law, the Christmas bonus must be paid on or before December 20th of each year.

  • Prorated Calculation: Employees who have worked for less than a full year at the payment date are entitled to a prorated amount based on the total number of days worked during that calendar year.

What Is Intugo’s Progressive Disciplinary Action and Warning Process?

Intugo follows a progressive disciplinary framework aligned with Mexican Labor Law to manage performance and conduct issues:

  • Verbal Warning: Issued for initial minor offenses and documented in the employee’s internal file.

  • Written Warning (Acta Administrativa): Issued for repeated or more significant performance/conduct issues, signed by the employee and witnesses.

  • Suspension Without Pay: Applied for severe or recurring infractions. Employees may be suspended without pay for 1 to 8 continuous days (the maximum permitted under Article 423 of the LFT).

  • Termination: Option of last resort for documented, uncorrected behavior or severe offenses covered under Article 47 of the Mexican Federal Labor Law.

 

Note: Depending on the severity of a first-time offense, Intugo reserves the right to issue an immediate suspension of up to 8 days without prior warnings.

How Does Voluntary Time Off and Job Abandonment Work at Intugo?
  • Voluntary Time Off (VTO): If an employee needs to leave the premises during working hours for personal reasons, they must sign an official Voluntary Time-Off Form with HR. This document confirms that the employee is off-site voluntarily for non-work reasons, waiving employer liability for any off-site incidents and preventing misclassification of personal accidents as workplace injuries (Riesgos de Trabajo).

  • Job Abandonment: Leaving the workplace during a shift without prior notification or HR authorization is classified as unauthorized absence and job abandonment. This constitutes a breach of employment terms and will lead to formal disciplinary action (Acta Administrativa), up to and including immediate termination for cause.

INFONAVIT

INFONAVIT (Instituto del Fondo Nacional de la Vivienda para los Trabajadores) = National Housing Fund.

PAID VACATION

Under Article 76 of the Mexican Federal Labor Law (LFT), employees are entitled to statutory paid annual leave after completing their first year of service:

  • First-Year Entitlement: Employees earn 12 consecutive business days of fully paid vacation after completing their first year.

  • Annual Accrual: Vacation time increases by 2 additional business days each year up to 20 days (Year 5). Starting in Year 6, vacation entitlement increases by 2 days for every 5-year bracket.

  • Vacation Premium (Prima Vacacional): By law (Article 80 LFT), employees receive an additional statutory cash bonus equal to at least 25% of their daily wage for each vacation day taken.

How Does Profit Sharing (PTU) Work Under Intugo’s Model?

Profit Sharing (PTU) is a mandatory constitutional benefit in Mexico where employees receive an annual share of company profits:

  • Full Compliance Management: As the legal Employer of Record (EOR) in Mexico, Intugo handles all calculations, statutory reporting, tax filings, and direct payment administration to your team members.
  • Statutory Payout Capping: Under Mexican Labor Law, PTU payouts per employee are capped at a maximum of three months of salary (or the average PTU received over the past three years, whichever is higher).
  • Execution Deadline: Intugo ensures full compliance with labor authorities by processing and executing statutory PTU distributions annually during the official payment window (May 1st – May 31st).
How Does Intugo’s Employee Absenteeism and Termination Policy Work?

Under Article 47 of the Mexican Federal Labor Law (LFT), terminations for cause are managed according to strict statutory guidelines:

  • Immediate Termination for Cause: A single severe infraction (e.g., dishonesty, violence, harassment, or intentional property damage) may lead to immediate termination without employer liability or severance obligations.

  • The 4-Absence Threshold: Accumulating 4 unjustified absences within a 30-day period provides ground for justified termination (Despido Justificado).

  • Rolling 30-Day Window: Absences are tracked over a rolling period of 30 natural/calendar days, rather than resetting at the start of each calendar month.

  • No Double Penalization: If an unjustified absence is individually penalized (e.g., through a disciplinary suspension without pay), that specific absence cannot be counted toward the 4 absences required for a justified termination.

How is Formal HR Communication with Employees Handled at Intugo?

Intugo manages all official employment matters through formal written memorandums and addendums to maintain full compliance with Mexican Labor Law:

  • Scope: Applies to all key employment updates, including contract modifications, salary adjustments, position changes, and official leave permissions.

  • Validity Requirements: For any memorandum or policy update to be legally binding and official, it must be signed by both the employee and Intugo’s authorized HR representative.

  • Record Keeping: Executed documents are permanently archived in the employee’s legal file to ensure full audit compliance and clear operational records.

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