FAQ Intugo
Frequently Asked Questions
Intugo´s Recruitment
Firstly, we ensure all open positions are advertised through various channels. This includes fieldwork, social media, online job search engines, and public relations activities with local universities, training centers, and government agencies. We also utilize traditional media like newspapers, radio ads, and job fairs both locally and beyond. Additionally, we conduct referral campaigns and outdoor advertising to attract walk-in candidates. We keep our clients updated on our recruitment efforts.Furthermore, with their authorization, we can promote our client’s brand.
Moreover, Intugo manages our client’s brand to avoid liability for the client company. Our client may solicit authorization for any materials used under their brand.
Intugo´s Screening Process
Intugo´s interviewing process consists of 3 main filters.
- Intugo recruiters interview candidates. If candidates are considered for the next filter, recruiters apply the required tests. Each of our recruiters specializes in a different area.
- An Intugo HR Coordinator interviews candidates and selects candidates to interview with our client.
- Last, our client interviews candidates. Notwithstanding, the client will always hold the final decision on who will work for their company.
What do we Need to Know about Selecting and Hiring Candidates?
Nevertheless, we can adapt to our client’s needs by requesting candidates to take any test the client requires at any stage of the interviewing process. Further, Intugo may provide screening tools, but we may require the client to deliver specific tests. We will work together to find the most cost-efficient and time-convenient options for each job profile.
Thereafter, our HR department will work closely with the client to establish the documents and credentials a selected candidate must present to hire the candidate: travel documents, references, drug tests, pregnancy tests, criminal background checks, and proof of scholar degree, among others.
Intugo will sign off a contract with candidates selected by the client to be hired. Concurrently, we will also sign off an internal rule book created by Intugo that abides by our federal labor law. In addition, we can include any company paperwork our client requires (such as non-disclosure agreements, operation policies, and company procedures), as long as it complies with the Mexican Federal Labor Law. Markedly, these documents must be provided by our client. Intugo will maintain an employee file for every new hire.
How is the Employees´ Onboarding Process Managed With Intugo?
Intugo has a company orientation session for every new hire. During orientation, the employee will learn about The Offshore Group, Intugo, and who Intugo’s clients are. This onboarding phase is crucial for employees to understand our operating structure. During this time, they learned that Intugo is their legal employer and will address all HR concerns. However, they understand that they will be working under our client’s corporate culture. Moreover, we analyze every operational process like contracts, regulations, salaries, timekeeping system and payroll, internal communication, etc. We usually also have a facilities tour.
Ideally, a supervisor for the client would continue with the orientation specifically for the client company. Intugo HR can as well learn the company orientation for the client and include it in the same session.
Employee Contracts Management
I – Options for Employment Contracts in Mexico With Intugo.
We place direct employees on temporary “training period” contracts, which can last between 30 and 90 days. To clarify, we must observe one single temporary contract, as combining multiple temporary contracts to reach 90 days is not allowed.
We also use temporary “trial period” contracts for highly technical specialists, management, or directing staff. These contracts may last from 30 to 180 days. However, we apply only one temporary contract and do not combine multiple contracts to reach 180 days. HR advises whether this type of contract structure applies to a specific position.
Afterward, once the temporary trial or training period concludes, we transition employees to indefinite contracts. You may also choose to make an employee permanent at any point during the temporary contract’s extension.
II – Managing Employment Contracts in Mexico With Intugo.
Thereupon, HR monitors employee´s tenure and gives notice to our clients whenever an employee´s contract is close to turning indefinite. Depending on the specific requirement of our client, HR may send weekly or monthly reports of employees ‘contracts status.
If necessary, when an employee’s actions or performance provide grounds for contract termination, the client must notify HR. Our team then guides the client in preparing proper documentation. By doing so, we can document the employee’s faults or poor performance and proceed with termination without severance. Nonetheless, a small risk of severance liability remains if the employee pursues legal action, though this is an unlikely scenario.
For both temporary and indefinite contracts, if there is no solid reason or motive generated by the employee for termination, or if there has been a failure to document the employee´s actions leading to termination, we would start a termination negotiation. This negotiation will imply the following:
A) Temporary Contracts:
B) Indefinite Contracts:
Statistically, it is improbable to pay over 1.5 months of salary in a negotiation. Also, it is unlikely that over 5% of involuntary terminations will end up in negotiation for severance.
Intugo's Approach to Contract Termination in Mexico
Reasons for justified employee termination. (please refer to article 47 of the Mexican Federal Labor Law):
- The worker deceives the employer, or when applicable, the union that suggested or recommended them with false certification or references that attribute qualifications, aptitudes, or abilities to the worker that they lack. This reason for termination becomes invalid after the worker has rendered service for thirty days.
- The worker in the performance of his job is not honest or honorable, commits violent acts, threatens, commits injuries on the person of the employer, his family, the management or administrators of the company or establishment, except when provoked or during self-defense;
- The worker commits, against one of their coworkers, one of the acts detailed in the latter Section, if it disrupts the discipline and order of the workplace.
- The worker commits, outside of the workplace, against the employer, his family or the management or administration any of the acts referred in Section II, if they are so serious that they make impossible the completion of the labor contract;
Workplace Damage and Safety Violations
- The worker intentionally causes material damage during the discharging of his duties or with the motive of doing so, to the buildings, works, machinery, instruments, raw materials and all other objects related to the job.
- The worker causes the damages mentioned in Section V provided that they are serious, not caused intentionally, but negligently, and that negligence is the sole cause of the damage.
- The worker compromises, by his imprudence or inexcusable carelessness, the safety of the establishment or the people that are present inside it.
- The worker commits immoral acts in the establishment or place of work.
- The worker reveals industrial secrets or makes known private personal matters that damage the business;
Disciplinary Actions and Contract Violations
- The worker has more than three absences in a period of thirty days without permission of the employer or a justifiable excuse.
- The worker disobeys the employer or his representatives without just cause, provided that it relates to the contracted work;
- The worker refuses to adopt preventive measures or to follow the procedures established for avoiding illnesses;
- The worker arrives at work intoxicated or under the influence of some narcotic or intoxicating drug, except in the latter case, where there is an existing doctor’s prescription. Before beginning his service, the worker must bring this to the attention of the employer and present the prescription proscribed by the doctor;
- Any implemented sentence that imposes prison time on the worker, that prevents him from completing his work contract; and
Those things similar to that established in the latter sections that would have consequences as serious pertaining to the employment.
Work Schedule at Intugo
What is the Proper Way to Accommodate Work Schedules?
The Mexican Labor Law mentions 3 shifts that have different limitations, all based on a 6-day workweek.
Day Shift
Night Shift
The night shift operates between 8 pm and 6 am. Employees work a maximum of 7 hours per day, totaling 42 hours per week.
Mixed Shift
The mixed shift applies when a work schedule includes hours from both the day and night shifts. Specifically, employees work up to 7.5 hours per day, adding up to 45 hours per week. However, if the schedule extends more than 3.5 hours into the night shift, we classify it as a night shift.
*Work shifts are assessed on a day-to-day basis for payroll purposes.
Flexible Work Arrangements With Intugo
Employees can sign agreements to reduce their workweek to fewer than 6 days, while maintaining the same total number of weekly working hours.
In addition, employees can transition to part-time schedules by amending their employment contracts. To do so, a full-time employee must resign from their full-time contract and sign a part-time contract.
Moreover, if an employee’s schedule includes Sunday as a workday, they receive an additional 25% pay on top of their daily salary for each Sunday worked.
What are the Proper Time Frames for Lunch and Breaks at Intugo?
Non-Exempt Employees:
Exempt Employees:
Is There any Flexibility in Arranging Schedules with Employees?
The Intugo HR department can draft different schedule agreements and have the employee sign them off in order to better accommodate our client’s regular operating hours.
Our typical schedule agreement is the 9.6 working hours per day with an extra rest day for the day shift. The employee accrues 1.6 worked hours per day during 5 days corresponding to the 6th regular working day. By signing the agreement the employee acknowledges that the 1.6 hours they work daily after the normal 8 hours will not be paid as overtime in exchange for the benefit of receiving an extra day of rest.
How are Schedule Changes Handled in Mexico With Intugo?
Federal Labor Law requires us to give a minimum of 24 hours’ notice for any schedule changes. Intugo strongly recommends giving at least a week notice for schedule changes required by either party.
What Holidays are to be observed?
Our client has the option of requiring its employees to take off the holidays that best fit the company’s needs.
- January 1st
- First Monday in February
- Third Monday in March
- May 1st
- September 16th
- Third Monday in November
- December 25th
In addition: Festive days appointed by Federal Labor Law, December 1st every 6 years and those established by Federal and Local Electoral Authority for the celebration of ordinary election
Employee Holiday Rights and Benefits
If the employees need to take the American holidays in place of the Mexican holidays, our HR department will proceed in signing off an agreement with every employee as part of their hiring process. This agreement states that they will be taking off other days instead of those listed as Mexican Holidays.
The employee must have at least the same number of holidays as Mexican holidays in the corresponding year, typically 7. The employee may be required to work on a holiday, which will be considered a “worked holiday” for payroll purposes. Worked holidays receive double pay.
Does Intugo Have a Time Keeping System?
Intugo has a pair of clocks at each entrance for employees to clock in upon arrival and out when they leave the building. Employees do not clock in and out for lunch or breaks.
We provide the employee with an ID which is the device they’ll use to clock in and out.
Depending on the nature of the operation, client might request to provide attendance information to Intugo instead of using time clocks.
What Types of Absenteeism Scenarios can we Expect?
The following list includes possible absenteeism events that could occur in daily operations. The client will indicate how they typically define and limit no-shows, tardies, and permissions based on their operational standards. Ideally, the client will create an attendance agreement for their Intugo employees to sign, which will become part of Intugo’s operational policies.
- Unjustified no show /absenteeism. By law, 4 events of this class are considered grounds for employee contract rescission, but we have to hold proof of the absenteeism.
- Justified no show/absenteeism (unpaid)
- Tardy (unpaid )
- Permission with pay ( full day or partial)
- Permission without pay (full day or partial)
- Job abandonment
- Holiday ( holiday hours allocated in the hourly labor cost rate)
- Vacation ( vacation hours allocated in the hourly labor cost rate)
- Medical/Pregnancy leave. Issued by IMSS.
Medical Leave Coverage with IMSS
Employees will receive medical leaves exclusively through IMSS. These leaves are classified into two main categories:
1. Unpaid Medical Leave
- This type of leave is limited to a maximum of 3 days.
- The duration of the leave is determined at the discretion of IMSS medical staff.
- Although the document issued by IMSS justifies the employee’s absence, neither the company nor IMSS will compensate the employee for these days.
2. Paid Medical Leave
- For leaves extending beyond 3 days, IMSS will provide financial support.
- General Illness: IMSS pays 60% of the employee’s salary starting from the fourth day of leave. No payment is provided for the first 3 days.
- Workplace Risk: For workplace-related illnesses or injuries, IMSS pays 100% of the employee’s salary starting from the first day of leave.
- It is important to note that workplace-related leaves may lead to an increase in the company’s IMSS fees.
Types of Medical Leave
General Illness
- Covers illnesses unrelated to the workplace.
- IMSS compensates 60% of the employee’s salary if the leave exceeds 3 days. The initial 3 days are unpaid.
Workplace Risk
- Applies to diseases or accidents directly related to the employee’s job.
- IMSS pays 100% of the employee’s salary from the first day of leave.
- Workplace risk leaves may result in increased IMSS fees for the company.
Pregnancy Leave
- Employees are entitled to a 3-month leave with 100% of their integrated salary paid by IMSS.
- This benefit is provided if the employee meets IMSS requirements.
Law Articles
A.- Title 5 art 170, Federal Labor law.
Employees are entitled to a mandatory pregnancy leave consisting of 6 weeks before the expected delivery date and 6 weeks after delivery.
- Extensions: These periods may be extended based on the specific circumstances of the pregnancy, as determined by IMSS medical staff.
- Salary: During the leave, the employee will receive 100% of her integrated salary, covered by IMSS if requirements are met.
- Breastfeeding Breaks: After returning to work, the mother is entitled to two additional 30-minute breaks per day to feed her newborn. This benefit is available for up to 6 months after the baby’s birth.
- Tenure: The pregnancy leave does not impact the employee’s tenure or seniority within the company.
B.- art 101, IMSS (social security) Law.
Mothers are entitled to receive 100% of their integrated salary for the 42 days before and 42 days after their due date.
- Extended Leave: If additional leave is required, it will be treated as general sick leave, with IMSS covering 60% of the employee’s salary.
- Flexible Leave Option: Since July 2016, employees can opt to receive their maternity leave as a single 84-day period without needing to complete separate paperwork for the pre- and post-birth phases.
C.- art 102, IMSS (social security) Law.
To qualify for pregnancy leave benefits covered by IMSS, employees must meet the following criteria:
IMSS Subscription: The employee must have been subscribed to IMSS for at least 30 weeks within the 12 months prior to the start of the pregnancy leave.
Certification: IMSS must certify both the pregnancy and the expected due date.
Non-Employment: The employee must refrain from any paid work during the leave period, both before and after the due date.
D.- art 103, IMSS (social security) Law.
What do I Need to know about Salaries in Mexico?
By law, salaries must be defined on a daily basis. Therefore, contracts will state the daily salary. However, if an employee is absent for a portion of a workday, the client may deduct pay for those hours.
To break up a monthly salary into a daily salary we will consider 30.4 days in a month (average number of days per month in a year).
Our work week considers 6 workdays and a full paid rest day. We will not charge the client for hours allocated to the rest day, as these are considered labor costs already accounted for in your hourly labor cost rate. (Please refer to the cost model calculator).
Salaries in Mexico may be increased at any time but cannot be decreased.
Our Federal Minimum Wage is 80.04 pesos per day. Employees will expect a customary cost of living adjustment every year circling around the inflation average. (3% – 4% average in the past 10 years).
How does Payroll Work at Intugo?
Intugo’s HR department collects information from the time-keeping system and written notifications for absenteeism events to prepare a payroll report. Specifically, this report details the number of hours each employee worked during the pay period. Afterward, each employee reviews and signs off on the report to ensure its accuracy. As a result, we minimize payroll mistakes before making deposits.
Additionally, our client reviews and approves the payroll report. The total hours on the report correspond to the hours displayed on the client’s Offshore invoice.
To streamline the process, we assign each employee a bank account for receiving their deposits.
We handle 2 Different Payrolls at Intugo:
- Nonexempt Employees: We deposit payments each Friday based on the hours worked during the previous week.
- Exempt Employees: We deposit payments every two Fridays based on the hours worked during the current biweekly period.
How is Overtime Paid at Intugo?
We pay overtime only when the client has previously authorized it. In addition, we calculate overtime on a weekly basis.
The first nine hours of overtime are paid at double the hourly rate. For hours worked after the ninth overtime hour, we pay at triple the hourly rate. The shelter fee for overtime remains on a per-hour basis.
Maternity Guidelines In Mexico With Intugo
Pregnancy leave
Employees receive a 3-month pregnancy leave with a 100% integrated salary pay rate. IMSS covers this cost if the employee meets the eligibility requirements.
Law articles for Pregnancy Leaves:
A.- Title 5 art 170, Federal Labor law.
- Employees take a mandatory leave of 6 weeks before delivery and 6 weeks after delivery.
- These periods may extend depending on the specific circumstances of the pregnancy.
- During this leave, employees receive 100% of their integrated salary.
- Mothers also receive two additional 30-minute breaks per day to feed their newborns, limited to the first 6 months after the baby’s birth.
- This pregnancy leave does not impact the employee’s tenure.
B.- art 101, IMSS (social security) Law.
- Mothers receive 100% of their integrated salary for 42 days before and 42 days after the due date.
- IMSS pays extended leaves as general sickness leave, covering 60% of the salary.
- Starting July 2016, employees can opt to receive maternity leave as a single 84-day period without processing separate paperwork before and after the child’s birth.
C.- art 102, IMSS (social security) Law.
Employees must meet the following requirements to qualify for pregnancy leave paid by IMSS:
a) Employees must complete at least 30 weeks of contributions to IMSS during the last 12 months before the start of the pregnancy leave.
b) IMSS must certify both the pregnancy and the expected due date.
c) Employees must refrain from engaging in paid work during the period before and after the due date.
D.- art 103, IMSS (social security) Law.
If employees fail to meet these requirements, the employer assumes responsibility for covering the cost of the leave.
For Newborn or Adoption Leave (Male Employees): Male employees receive a 5-day paid leave for the birth or adoption of a child. The company covers the full cost of this leave.
For Adoption Leave (Female Employees): Female employees receive a 6-week paid leave in the event of adoption. The company also fully covers this cost.
What are the Employee Benefits Observed by Law in Mexico With Intugo?
The total cost of these benefits is allocated in the hourly labor cost rate (please refer to the cost model calculator)
IMSS
IMSS (Instituto Mexicano del Seguro Social) = Mexican Social Insurance Institution. In summary, this institution plays a crucial role in the public healthcare system of Mexico. Mexican labor law mandates that every employer register their employees with this institution. Accordingly, Intugo reports all new hires to this institution, including their salary and any subsequent salary changes or bonuses. Furthermore, the institution is responsible for issuing all medical leaves for our employees. Additionally, it administers public daycare facilities and provides social medicine services.
INFONAVIT
INFONAVIT (Instituto del Fondo Nacional de la Vivienda para los Trabajadores) = National Housing Fund.
SAR
PAID VACATION
Every employee is entitled to a twelve-day paid vacation period after completing their first year with the company. Subsequently, starting in the second year, the vacation period increases by two days annually until reaching a total of 12 days. Furthermore, once employees reach their fourth year, the vacation days will increase by two additional days every five years thereafter.
CHRISTMAS BONUS
PROFIT SHARING BONUS
What is the Disciplinary Action and Warning Process that Must be Followed at Intugo?
The normal process for disciplinary actions will be as follows:
Initially, when an employee’s behavior merits a report, they will receive a verbal warning. In addition, a written copy of this warning will be kept in the employee’s file.
Next, for repeated faults in the employee’s behavior or performance, the escalating disciplinary action will be a written warning.
Moreover, the third escalation of the disciplinary action process is suspension. Specifically, the employee may be suspended without pay from their position for 1 to 8 days, depending on the implications of their actions. Importantly, the total number of suspension days will be continuous. They cannot be split between different weeks.
- Based on a documented disciplinary action process, the escalating action may be termination.
- Aside from the indications above, if the employee ´s actions merit a suspension since the first time he receives a warning, the company may suspend him up to 8 days without pay.
Employee Absenteeism & Termination Policy
The company may address any event with the corresponding authority in order to follow an appropriate legal process. Termination might be applicable since the employee´s first infringement depending on the severity of his actions.
- 4 unjustified absences in a month lead to employee termination.
- We will account for unjustified absences that occur within periods of thirty natural days. If we penalize an unjustified absence, this absence will not count towards the four absences required for justified termination.
How does Voluntary Time Off & Job Abandonment Work?
The company may hold employees liable if they have an accident outside the workplace during their regular work shift. In such cases, the client assumes this liability. To address this issue, HR assists employees in signing a form whenever they request voluntary time off during their work shift. By signing, employees confirm that they are voluntarily leaving, which helps avoid liability.
Consequently, if employees leave in the middle of their work shift without notifying the company, we classify it as job abandonment. Since this action creates a liability for the company, we may discipline the employee, which could include termination.
How is Formal HR Communication with Employees Handled at Intugo?
Conversely, manage internal communication formally through memorandums. Similarly, we use memorandums to administer contracts, salary changes, permissions, and other matters. All parties involved must sign the memorandum.
