Recruitment

Our first step for recruitment is making sure that we advertise all open positions correctly; We do this mainly through fieldwork, social media, and online job search engines. We also carry public relations activities with local universities, training centers, and government agencies.

We also use massive media through newspaper and radio ads. We organize job fairs in and out of town, referral campaigns and we have placed outdoor ads that increase the number of walk-in candidates. Intugo will be glad to brief our client on our current recruitment efforts at all times. We can also promote our client´s brand if authorized by our client.

Our client´s brand must be managed through Intugo publicity in order to avoid liability for our client company. Our client may solicit to authorize any materials that are to be used under the client´s brand.

Our interviewing process consists of 3 main filters.

  1.  Candidates are interviewed by Intugo recruiters. If considered for the next filter, recruiters apply the required tests. Our recruiters are each specialized in different areas.
  2.  Candidates are interviewed by an Intugo HR Coordinator and select candidates to interview with our client.
  3. Candidates are interviewed by our client. The client will always hold the final decision as to who will work for the client´s company.

We are able to adapt to our client’s needs by requesting candidates to take any test that our client requires and this can be done at any stage of the interviewing process. Intugo might be able to provide some screening tools but might require our client to deliver specific tests. We will work together in order to find the most cost-efficient and time convenient options for each profile.

Our HR department will work closely with the client in order to establish the documents and credentials a selected candidate must present in order to hire the candidate: travel documents, references, drug tests,  pregnancy test, criminal background check, proof of scholar degree, among others.

Intugo will sign off a contract with candidates selected by the client to be hired. 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, company procedures, etc, as long as they are in compliance with the Mexican Federal Labor Law. These must be delivered by our client. Intugo will keep an employee file for every new hire.

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 is the key moment we use to explain to the employee our operating structure. Employees learn that Intugo is their legal employer and that Intugo will respond to every HR issue but we let them know that in practice, they are an employee of our client and that they will work under the client´s corporate culture. We analyze every operational process like contracts, regulations, salaries, timekeeping system and payroll, internal communication among others. 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.

I – Options for Employment Contracts.

  • Direct employees may be placed on a temporary “training period” contract that can extend from 30 days up to 90 days. One temporary contract must be observed; we cannot use different temporary contracts that add up to 90 days.

 

  • Highly technical specialists, the management or directing staff may be placed on a temporary “trial period” contract that can extend from 30 days up to 180 days. (One temporary contract, not different temporary contracts adding up to 180 days). HR will advise if this type of contract structure is applicable for any given position.
  • After a temporary trial or training period, employees receive an indefinite contract. You can decide to turn your employees permanent at any given point during a temporary contract´s extension.

II – Managing Employment Contracts.

 

  • 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 an employee is generating motive to believe his temporary contract might be terminated, our client must notify HR so that guidance in proper documentation is provided by our staff. By documenting the employee´s fault or lack of performance we are able to proceed to a contract termination without severance. A small risk for severance liability will remain in case the employee decides to pursue a lawsuit; this is an improbable 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:
  1. A) Temporary Contracts: Paying for the remaining term of the contract capped up to 3 months’ salary payout.
  2. B) Indefinite Contracts: Paying up to 3 month´s salary pay plus tenure prime which implies an average of $150 USD per year of employment.
  • 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.

Severance is composed of 3 months of pay at the last salary rate as well as 12 days´ pay per year of employment with the company capped at two minimum wage salaries and an additional 20 days´ pay per year if the employee sues for reinstallation.

  • Reasons for justified employee termination. (please refer to article 47 of the Mexican Federal Labor Law):

 

  1. The worker deceives the employer, or when applicable, the union that suggested him or recommended him with false certification or references that attribute qualifications, aptitudes, or abilities to the worker that he lacks. This reason for termination will be invalid after the worker has rendered service for thirty days;
  2. 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;

 

  1. The worker commits, against one of his coworkers, one of the acts detailed in the latter Section, if as a consequence the discipline and order of the workplace is affected;

 

  1. 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;

 

  1. 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;

 

  1. 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;

 

  1. The worker compromises, by his imprudence or inexcusable carelessness, the safety of the establishment or the people that are present inside it;

 

  1. The worker commits immoral acts in the establishment or place of work;

 

  1. The worker reveals industrial secrets or makes known private personal matters that damage the business;

 

  1. The worker has more than three absences in a period of thirty days without permission of the employer or a justifiable excuse;

 

  1. The worker disobeys the employer or his representatives without just cause, provided that it relates to the contracted work;

 

  1. The worker refuses to adopt preventive measures or to follow the procedures established for avoiding illnesses;

 

  1. 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;

 

  1. Any implemented sentence that imposes prison time on the worker, that prevents him from completing his work contract; and

 

  1. Those things similar to that established in the latter sections that would have consequences as serious pertaining to the employment;

Work Schedule

There are 3 shifts that are mentioned in the Mexican Labor Law which have different limitations, all of them based on a 6 working days week.

Day shift.- It runs between 6 am and 8 pm. The maximum number of hours an employee can work per day is 8 hours, which adds up to 48 hours per week.

Night shift.- It runs between 8 pm and 6 am. The maximum number of hours an employee can work per day is 7 hours, which adds up to 42 hours per week.

Mixed shift.- If any work schedule considers hours off both the day and the night shift then the maximum number of hours the employee can work per day is 7.5 hours, adding up to 45 hours per week. If the schedule stretches over 3.5 hours into the night shift time frame, then the schedule would be considered as part of a night shift.

*Work shifts are assessed on a day-to-day basis for payroll purposes.

Employees are able to sign schedule agreements in which their workweek is reduced to fewer days than the 6 stated by law whilst still observing the same total amount of working hours in a week.

Employees are also able to work part-time schedules per agreement in their employment contract. In order to change a full-time employee into a part-time schedule; the employee must resign to his full-time employment contract and sign a part-time employment contract.

If any schedule considers Sunday as a workday, the employee is entitled to a 25% extra pay over the daily salary for each worked Sunday.

Non-Exempt Employees:

The company will grant each day a period of a half-hour during which employee will take their food in the cafeteria of the company or in their homes. According to Mexican Labor Law, this 30 min lunch break has to be paid to the employee. Also, the employee must be assigned at least two break periods during the day. Law does not state the length of each break but typically 15 min. breaks are assigned by our clients.

Exempt Employees:

Typically, exempt employees will work 10-hour shifts in order to have a 1-hour lunch break. In this case, our client still pays only for 36 minutes of their lunch break; the employee makes up in worked time for the remaining 24 minutes.

The total cost of these benefits is allocated in the hourly labor cost rate (please refer to the cost model calculator)

  • IMSS (Instituto Mexicano del Seguro Social) = Mexican Social Insurance Institution. This institution takes care of the public health care system. Mexican labor law dictates that every employee should be registered to this institution by their employer. Intugo reports every new hire to this institution along with their salary as well as any salary changes or bonuses the employee receives. IMSS issues all of our medical leaves and it administers public day care facilities. It provides social medicine as well.

 

  • INFONAVIT (Instituto del Fondo Nacional de la Vivienda para los Trabajadores) = National Housing Fund.
  • SAR (Sistema de Ahorra para el Retiro) = National Retirement Fund

 

  • PAID VACATION. Every employee is entitled to a 6 day paid vacation period after the first year of working for the company. Year after year the vacation period will increase by 2 days until reaching 12 days. After the 4th year, vacation days will be increased by 2 every 5 years.

 

  • CHRISTMAS BONUS. At least 15 days of salary.

 

  • PROFIT SHARING BONUS. 7 days of salary for the first year. This will be paid in March considering the previous year’s company profit. It will be paid to the employees who were active during the period for which we are considering the yearly exercise profit. The payment will be in proportion if the employee did not work during the complete year.

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.

Federal Labor Law requests that we give a minimum of 24 hours’ notice for any schedule changes. Intugo strongly recommends to give at least a week notice for schedule changes required by either of the parties involved.

Our client has the option of requiring its employees to take off the holidays that fit best the company’s needs. The following is a list of the Mexican Holidays:

  • 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

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 needs to have at least the same number of holidays as the Mexican holidays in the corresponding year, which will normally be 7. The employee can be required to work during a holiday which will be considered as “worked holidays” for payroll means. Worked holidays are paid double.

Intugo has a pair of clocks in each entrance so that the employees clock in at their arrival and at the time they leave the building. They 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.

The following is a list of the possible absenteeism events that could occur in daily operations. The client will indicate by following its own operational standards how they would normally define and limit no-shows, tardies, and permissions. Ideally, the client will write up an attendance agreement for their Intugo employees to sign off and this agreement will be considered as part of their operation policies in Intugo.

  • 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.

Employees will receive medical leaves exclusively from IMSS. The medical leaves can be classified as follows:

1.- Unpaid medical leave. This type of leave is capped to 3 days. The length of the leave is established upon IMSS medical staff discretion. This document will justify the employee´s absenteeism but neither company nor IMSS will cover the employee´s salary for those days.

2.- Paid medical leave. When the employee is granted a leave that extends over 3 days, IMSS will pay 60% of the employee´s salary for a general illness and 100% of the employee´s salary for risk at workplace illness. The company does not cover any costs.

Types of Medical Leaves:

  • General Disease. This category covers any kind of disease not related to the employee’s workplace. IMSS pays the employee 60% of his salary is the leave extends over 3 days. The employee will receive no pay for the first 3 days on leave.
  • Work Place Risk. This category covers workplace-related diseases or accidents. IMSS will pay the employee 100% of his salary since day 1 of the leave period. If we incur in this type of medical leave, Intugo´s IMSS fee might be increased.
  • Pregnancy leave. Employees get a 3-month pregnancy leave at a 100% integrated salary pay. IMSS will cover this cost if the employee meets the requirements.

Law articles for Pregnancy Leaves:

A.- Title 5 art 170, Federal Labor law.

  • Mandatory leave, 6 weeks prior to delivered and 6 weeks after.
  • These periods may be extended depending on the pregnancy circumstances.
  • During the pregnancy leave, the employee must receive 100% of her integrated salary.
  • The mother is also entitled to two additional, 30-minute breaks to feed the newborn, limited to 6 months after the baby is born.
  • The pregnancy leave does not affect the employee´s tenure.

 

B.- art 101, IMSS (social security) Law.

  • The mother has the right to be paid 100% of her integrated salary, for the 42 days prior and the 42 days after the due date. Extended leaves will be paid as a general sickness (60% salary). *As of July 2016, the employee will now have the option to receive maternity leave for a single 84 days period without having to process paperwork before and after the child´s birth.

 

C.- art 102, IMSS (social security) Law.

  • To be eligible for pregnancy leave paid by IMSS the employee requires:
  1. 30 weeks subscription in IMSS during the last 12 months before the start date of the pregnancy leave.
  2. IMSS has to certify the pregnancy and the due date.
  3. That the employee does not work (paid) during the period before and after the due date.

 

D.- art 103, IMSS (social security) Law.

–     In case the employee does not meet the aforementioned requirements, the employer has to cover the cost for these leaves.

 

4.- Newborn or adoption. Male employees are entitled to a 5 day leave with pay for a newborn or adopted child. The company will cover this cost.

5.- Adoption leave. Female employees will receive a 6 week leave with pay in case of adoption. The company will cover this cost.

 

  • Suspension (unpaid)

o.

Payroll

By law, salaries will always be defined on a daily basis; hence, contracts will mention salary on a daily basis. However, hours can be docked from each worked day if the employee was absent for a couple of hours and the client decides not to 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. The hours that are allocated to the rest day will not be charged to the client as normal worked hours because they are considered as labor cost which is 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).

Based upon information gathered from our time-keeping system and all the written notifications for absenteeism events, Intugo’s HR department will publish a payroll report. This report contains the number of hours each employee worked for the pay period in the matter and every employee will revise this report and sign off on it in agreement. This way we will payroll mistakes are rare by the time deposits are made.

Our client will as well sign off on this report. The total number of hours on this report will be the number of hours our client will visualize on Offshore’s invoice.

Every employee is set up with a bank account in which their deposits will be made.

We handle 2 different payrolls:

  • – This payroll is meant mainly for nonexempt employees. We will deposit each Friday for the number of hours worked during the previous week.

 

  • – This payroll is meant for exempt employees. We will deposit every 2 Fridays for the number of hours worked during the current biweekly period.

Overtime will be paid for as long as it was previously authorized by the client. It is calculated on a weekly basis.

The first 9 hours of overtime are paid at double the hourly rate and from the 10th hour and over they are paid at triple the hourly rate. The shelter fee for overtime will remain on a per-hour basis.

General

The total cost of these benefits is allocated in the hourly labor cost rate (please refer to the cost model calculator)

  • IMSS (Instituto Mexicano del Seguro Social) = Mexican Social Insurance Institution. This institution takes care of the public health care system. Mexican labor law dictates that every employee should be registered to this institution by their employer. Intugo reports every new hire to this institution along with their salary as well as any salary changes or bonuses the employee receives. IMSS issues all of our medical leaves and it administers public day care facilities. It provides social medicine as well.

 

  • INFONAVIT (Instituto del Fondo Nacional de la Vivienda para los Trabajadores) = National Housing Fund.
  • SAR (Sistema de Ahorra para el Retiro) = National Retirement Fund

 

  • PAID VACATION. Every employee is entitled to a 6 day paid vacation period after the first year of working for the company. Year after year the vacation period will increase by 2 days until reaching 12 days. After the 4th year, vacation days will be increased by 2 every 5 years.

 

  • CHRISTMAS BONUS. At least 15 days of salary.

 

  • PROFIT SHARING BONUS. 7 days of salary for the first year. This will be paid in March considering the previous year’s company profit. It will be paid to the employees who were active during the period for which we are considering the yearly exercise profit. The payment will be in proportion if the employee did not work during the complete year.

The normal process for disciplinary actions will be as follows:

 

  1. When an employee’s behavior merits to receive a report, he will initially receive a verbal warning. A written copy of this warning will be kept in the employee’s file.

 

  1. The escalating disciplinary action for repeated faults on the employee´s behavior or performance will be a written warning.

 

  1. The third escalation of the disciplinary action process is suspension. The employee may be suspended without pay from his position from 1 to 8 days depending on the implications of his acts. The total number of days suspended will be continuous. They cannot be split between different weeks.

 

  1. Based on a documented disciplinary action process, the escalating action may be termination.

 

  1. 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.

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.

 

  • Unjustified absences would be accounted for if occurred within periods of thirty natural days. If any unjustified absence was to be penalized, this absence will not accrue for the justified termination at 4 absences.

The company might be held liable if an employee has an accident outside the workplace during his regular work shift. This liability is transferred to our client. For this reason, every time an employee requests voluntary time off during his work shift, HR will assist in signing off a format where the employee is stating that he is voluntarily leaving; this avoids liability.

If an employee leaves in the middle of his work shift without giving notice to the company, he will be incurring job abandonment and because his actions represent a liability for the company, he may be disciplined with up to termination.

Internal communication is managed formally with a document to which we refer to as a “memo”.  Contracts, salary changes, permissions, among many others, are administered with a memo. This document will include a signature from all parts involved.

Intugo’s unique business model makes it easy for companies of any size to establish their own nearshore software development operation in Mexico.


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