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Old 05-17-2008, 06:51 PM
Elves Elves is offline
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While I respect everyone's opinion, I did some research in the past regarding labor laws and common practices. I disagree with a few of your opinions.

The balance of labor laws in Mexico is greatly tipped in favor of the employers, not the employees (especially benefits related). For every law in favor of the workers, there's three ways to circumvent it. Outsourcing companies are thriving, because they take care of direct hiring. The "Resignation Letter" might be a good tool, but worthless during a labor dispute due to the illegality of the practice. It might be good to have it around in case your worker got himself a lousy lawyer though. Keep in mind that one out of thousand employees might be a crook, so it is very unlikely you will run into one of them. The other option which is also a common practice in Mexico is the same we used here in the states (making them awfully uncomfortable so they resign). Only government employees can get away with murder in Mexico, hence the lousiest costumer service everywhere.

I have to admit the ideas presented here disgusted me, but I understand your concerns. No one can confirm them or deny them, so I'll just take that with a grain of salt. From the point of view of an entrepreneur, the laws might seem brutal. But just take a look at the wage rates for skilled workers.

Don't be discouraged. Bureaucracy and the "the way things are" will test your patience constantly, and many times you will ask yourself "Why the **** can they do this like back home?" or "Is it a requirement for a utility company clerk, or government employee to have an IQ of under 70 to work here?"

Visiting the beach and getting those sand grains between your toes and butt-crack, watching the sunset, getting your feet wet, and making fun of of the world as often as you can will make you glad you live there.

Best of luck to you.
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  #22 (permalink)  
Old 05-17-2008, 09:59 PM
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All of the AI's in the area work their employees on 3 month contracts. 6 months, if the employee has been with the hotel for awhile. This allows them to send the employees on "vacation" when the low season hits, with a promise to rehire them in 15 days. I know this, for fact, because it directly relates to our business.

We have our staff sign yearly contracts, and it is hard to fire someone, even for cause. When you do, you normally have to work out a settlement, and pay a finiquito, where the ex employee signs a paper stating that they are satisfied and will not pursue it further. You then go to an arbitrator to notarize the document. If the employee fights, they usually win. In order to fire someone, for cause, you have to document the infraction and take it to city hall. This is called an "acta". After 3 "actas", you can let them go, but you still have to pay them. If a employee does not show up for three working days, without notice, you can let them go. Of course, they can claim that they talked to the sectrary's nephew about being out. Unless you have a system in place, that is followed to the T (and you can prove it), you won't win this battle, either.

The law overprotects employees. No doubt. Take the word of people who employ people, in Mexico. They know. On the good side, most of the Mexicans I have had working for me are hard working and honest. I have actually had more problems with foreigners who learn about the laws and try to use them to their advantage. They usually end up on the losing end, because I head over to Immigration and baja them. Once that happens, their FM3 is worthless. I am a son of a bitch when you screw with my livelihood.

Not many sunsets or toes in the water when you work 11 or 12 hours a day, unfortunately.
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Old 05-17-2008, 10:12 PM
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Originally Posted by PlayadelSoul View Post
All of the AI's in the area work their employees on 3 month contracts. 6 months, if the employee has been with the hotel for awhile. This allows them to send the employees on "vacation" when the low season hits, with a promise to rehire them in 15 days. I know this, for fact, because it directly relates to our business.

We have our staff sign yearly contracts, and it is hard to fire someone, even for cause. When you do, you normally have to work out a settlement, and pay a finiquito, where the ex employee signs a paper stating that they are satisfied and will not pursue it further. You then go to an arbitrator to notarize the document. If the employee fights, they usually win. In order to fire someone, for cause, you have to document the infraction and take it to city hall. This is called an "acta". After 3 "actas", you can let them go, but you still have to pay them. If a employee does not show up for three working days, without notice, you can let them go. Of course, they can claim that they talked to the sectrary's nephew about being out. Unless you have a system in place, that is followed to the T (and you can prove it), you won't win this battle, either.

The law overprotects employees. No doubt. Take the word of people who employ people, in Mexico. They know. On the good side, most of the Mexicans I have had working for me are hard working and honest. I have actually had more problems with foreigners who learn about the laws and try to use them to their advantage. They usually end up on the losing end, because I head over to Immigration and baja them. Once that happens, their FM3 is worthless. I am a son of a bitch when you screw with my livelihood.

Not many sunsets or toes in the water when you work 11 or 12 hours a day, unfortunately.
Totally agree with PlayadelSoul, Libby & Michele. Even if you catch an employee stealing all the money you had in your safe and fire him, you still owe him severance. If an employee works for you less than 6 months, you owe him three months pay. The severance amounts can be staggering. The idea of having a contract up front - and a short one at that - is the best way to protect yourself as an employer. And regardless what you may be able to research, things work much differently here than in the US, and the employee definitely has the upper hand in the relationship.
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Old 05-18-2008, 09:01 AM
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Thanks for all of the feedback.

Does the attorney draft the contract? Does anyone know of an attorney in the Playa area?
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Old 05-18-2008, 11:59 AM
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Thanks for all of the feedback.

Does the attorney draft the contract? Does anyone know of an attorney in the Playa area?
These two Playa del Carmen lawyers speak excellent English.
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Old 05-18-2008, 12:05 PM
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These two Playa del Carmen lawyers speak excellent English.
Fantastic! Thank you Libby.
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Old 05-18-2008, 07:08 PM
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I don't feel disheartned at all. I have been very fortunate to have the opportunity to be able to make this life change and I am incredibly greatful for all of the information that has been given to me by expats and locals alike. I think that if someone is passionate enough about something, they will figure it out...that's what I plan on doing. I'm sure I will make MANY mistakes along the way but I will always try not to make the same ones twice. I don't care to ever get rich because that will just mean I spend more money on crap I don't really need It took me a year to get rid of everything...I just want to enjoy life with my family, in Mexico, by the beach, doing what I am most passionate about.

Thanks for all of your advise and comments. They have been much appreciated. I have alot to still learn.
Good for you! It sounds like you have the right attitude. The horror stories are much more rare than common, but it is imperative you understand your rights and responsibilities. Looks like you're going to have fun!
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Old 05-19-2008, 08:12 AM
Scharke Scharke is offline
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For what it's worth, I'm on my third Mexican employee and it's been nothing but a great experience. I've found young, smart, enthusiastic people who are thrilled to have the opportunity to work and learn. I've never had a problem. There's lots of locals here who just want to learn, work and grow. Enter into it with a good, respectful attitude and I assure you, you'll get the same thing back from your employees.
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Old 05-19-2008, 11:09 AM
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Originally Posted by Scharke View Post
For what it's worth, I'm on my third Mexican employee and it's been nothing but a great experience. I've found young, smart, enthusiastic people who are thrilled to have the opportunity to work and learn. I've never had a problem. There's lots of locals here who just want to learn, work and grow. Enter into it with a good, respectful attitude and I assure you, you'll get the same thing back from your employees.
So glad to hear you've had good experiences. I think the point people were making earlier is that you need to be proactive in the employee/employer relationship and protect yourself. A good, respectful attitude is very helpful and the only way to be, in our opinion, but it won't protect you in this country in an employee/employer dispute and it doesn't necessarily guarantee a similar attitude from your employees. We are lucky that we have finally found a very good staff, but it took us quite some time, and we went through some less than positive experiences with people along the way, despite our good attitude.

It's no different here than anywhere, really, when it comes to hiring and firing people, except that here the laws lean toward the employee, so you need to be careful. Compared to our home state of California where employment is "at will," this is a very different environment.

~Cheri
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