It is unpleasant being involved in a car accident, and even more upsetting when you’re not in your home country. The first thing to consider is that it is extremely important to have auto insurance when driving in Mexico. Insurance is mandatory and pays for damages, medical costs and other expenses arising from an accident. It’s also important to remember that foreigners who have car accidents in Mexican territory are subject to Mexican laws and have the same rights and obligations as any other citizen of Mexico.

If you are involved in a minor car accident that does not involve injury,  the parties should first agree on who caused the accident. If the party who caused the accident acknowledges responsibility, then you should park your cars and call your insurance agents. The insurance agents will arrive promptly to inspect the cars and the scene of the accident. They will talk to the parties involved, take photos and give you forms to sign. After they are finished, you can drive away and the insurance companies will process the incident.

If neither party acknowledges fault, you should leave your vehicle on the spot of the accident, and let the insurance representatives or traffic authorities determine who is at fault.

If the accident results in serious damage or any injury, then you should follow these recommendations:

Do not move your car. Stay where you are and notify the traffic police, or wait for them to arrive at the scene of the accident.  Both parties should immediately report the accident to their insurance companies, which will send representatives to the scene.  When there is serious damage to any vehicle, the best outcome is that the insurance representatives will determine who is at fault. If the insurance representatives are unable to agree, then the case will be referred to the courts, and  a usually long and expensive legal proceeding is required.  

If one of the cars involved is not insured, you should wait for the traffic officer and he will prepare an accident report that you must sign. If you do not speak Spanish, you should ask for someone who can help you with the translation before signing any document that may be filed in a legal proceeding.  Read the report and make sure it describes exactly how the event occurred. If it does not, you should amend the report in your own handwriting.

The traffic authorities will attempt to make the parties arrive at a settlement. They will tell you that even if you are not guilty, both vehicles will be impounded and the drivers will be taken to the police station for drug and alcohol testing. This happens particularly when one of the parties is not insured and not likely to accept an agreement. You should be calm and patient, since most of the time, the guilty party will acknowledge responsibility and procure a means of repair, even if they are not insured.

When one or more persons suffer minor injuries in the accident, the driver(s) are brought before the public prosecutor for matters relating to the injuries. The prosecutor will determine the liability of the drivers involved in the accident.  As a foreigner, you must inform the prosecutor of your nationality and request a translator who will inform you of your rights and assist you in the proceedings.

In the event of an injury, the guilty party must pay restitution. This includes medical expenses plus an additional amount determined by a sliding scale, depending on the extent of the injury. If someone is killed, restitution also includes funeral expenses, and is paid to the family.

The accused must present  evidence, including eye-witness testimony, traffic reports and medical reports to defend themselves until the authority resolves the case according to law or the injured party drops charges.  Once all the evidence has been presented by the parties, the authority will issue a resolution. 

The resolution can have three possible outcomes:

1. The case is sent to criminal court as an indictment against the accused
2. The case is dismissed
3. The case remains on file indefinitely, but no action is taken

Indictments are issued in cases of possible criminal negligence, such as drunk driving, hit-and-run, etc. If you are found guilty, the authority will notify your lawyer that you are subject to arrest.

Yucatan Expatriate Services can help you with information and guidance to choose car insurance, assist as translators and arrange legal counsel. If you have any question please contact us at info@yucatanyes.com. If you want to know more about different types of insurance, we invite you to download our Insurance Guide.

In truth, the best way to find a job in Mexico is to do what many Mexicans do, which is to start your own business. The majority of Mexicans are self-employed in some enterprise, either formally or informally.

Many foreigners have moved to Mexico and started successful businesses. Some are multinational corporations, such as Wal-Mart or General Motors.  Foreign manufacturers have moved some of their operations to Mexican factories, called maquiladoras.  Individual entrepreneurs start various kinds of businesses, such as opening a small hotel, managing a real estate agency, operating a tour company or simply renting their vacation home. Others work for foreign employers, using the Internet to telecommute to the office.

Regardless of the business you conduct in Mexico, however, any income earned while physically in Mexico is subject to Mexican taxation, whether the income is from a foreign or domestic source. For this reason, it’s important to know the laws and requirements for operating a business legally in Mexico.  Not that long ago, the laws were rarely enforced and foreigners were tempted to ignore them. Those who do so today are taking the unnecessary risk of losing their business investment.

Business Activity
There are some business activities in which foreigners are not allowed to participate. Only the Mexican Government can operate a business involved with oil exploration, extraction or distribution. This well-known government-owned company is called Petróleos de México or PEMEX.  Another government-owned energy company is the Comisión Federal de Electricidad or CFE, which is Mexico’s electric company.

Some business activities require that all or some of the stock holders or members of the company be Mexican citizens. The mining and transportation industries are among these. But most business activities pursued by foreigners are not restricted. If you are unsure if your proposed business activity is restricted, contact us for clarification.

Work Visa
The first step in starting a business in Mexico is to obtain the correct visa. Resident visas with provisions that allow the visa holder to earn income in Mexico are mandatory. The requirements for obtaining one of these visas are straightforward, and if the requirements are satisfied, approval is routine. To learn how to apply for a resident visa, read our article: FM3 and FM2 Visas. For comprehensive information about immigration laws and procedures, download our Immigration Guide.

Note: If you form a company in Mexico, actions taken by a foreigner as an officer of the company without proper visa status will have no legal effect. While the process of obtaining proper visa status is pending, major acts or transactions may be conducted on behalf of the company by a special delegate appointed specifically for such purposes by a member meeting in the case of a Limited Liability Company or by a shareholders meeting in the case of a corporation.

Tax Identity
There are two types of tax identities in Mexico. A persona fisica is an individual taxpayer. A persona moral is a business entity, such as a corporation. If you work as an individual and earn income directly from clients, or if you work for a Mexican company and receive income or dividends, you are required to pay taxes as a persona fisica using your personal tax identification number. If you establish a Mexican corporation or Limited Liability Company, the business entity is required to pay income taxes as a persona moral using its tax identification number.

The Mexican tax authority is called Secretaría de Hacienda y Crédito Público (SHCP) or simply “Hacienda” for short. The administrative division of the SHCP for tax collection is called Servicio de Administración Tributaria or SAT. They issue a Cédula de Identificación Fiscal, which is a certificate bearing the Registro Federal de Contribuyente or RFC. The RFC is the tax ID number.

Business Structure
The business structure you choose will depend on your business activity, level of expected income, type of capital equipment, number of employees, legal liabilities and many other factors.

Independent Contractor
If you are an individual providing your services to clients and are willing to accept personal liability, then you can probably conduct business and pay taxes as a persona fisica and not establish a Mexican business entity.  This kind of worker is generally referred to as an independent contractor. These jobs include lawyers, doctors, translators, photographers, massage therapists and consultants, to name a few. As an independent contractor, you can issue formal invoices called facturas to clients that require them, and these clients will withhold and pay your taxes. Income received from these clients is called honorarios. If you receive income that is not reported by your clients, you are personally liable for the withholding taxes and they must be paid by you through a Mexican tax accountant.

Note: Foreigners who want to perform certain activities, such as legal or medical services, will need to validate their credentials according to Mexican legal criteria for their specific field.

Sole-Ownership Corporation
There is technically no such thing as a “sole proprietorship” in Mexican business law. However, there is a sole-ownership form of company called Actividad Empresarial. There can be only one shareholder and the individual is liable for any and all aspects and activities of the business, and his personal assets are at risk. Neither can the corporation own real assets. But it can employ others, issue facturas and pay taxes as a business entity.

Note: Independent contractors and small businesses, such as the above, may receive a tax designation from SAT called Pequenos Contribuyente, or small contributor. If the business earns less than $1.5 million pesos per year (roughly $120,000 dollars), then it can pay a reduced flat tax with simplified tax filing. Foreigners must hold a working visa to qualify.

Limited Liability Company
A Mexican LLC is called a Sociedad de Responsabilidad Limitada (S. de R.L.) or if funded with variable capital, the title is appended with de C.V. This business entity is similar in most respects to Limited Liability Companies in other countries. The Members of a Mexican S. de R.L. are liable only for the amount of their investment and may or may not receive income, depending on their role. This business entity can issue facturas and own real property. Taxes are paid on a monthly and annual basis. These are the requirements and conditions for starting this kind of company:

• Minimum capital requirement: $3,000 MXN (~$240 USD)
• Minimum of two members
• Members make an initial investment that establishes their percentage of ownership
• One membership per investor. Votes are determined by investment. (For example, if one member invests $2,900 pesos, and the second member invests $100 pesos, Member #1 has 29 votes and Member #2 has 1 vote.)
• Decisions must be approved by a majority of member votes, representing more than 51% of the capital, unless the company bylaws require a higher majority percentage
• The company can be managed by a single manager or be board managed
• Management can be members of the LLC or a third party appointed for that purpose
• The highest authority for this company resides with the Members Meeting

Corporation
A Mexican corporation is called a Sociedad Anonima (S.A.) or if funded with variable capital, the title is appended with de C.V. This business entity is similar in most respects to corporations in other countries. Shareholders are not personally liable other than for the actions taken by them as members of the management of the company. The company can issue facturas, hold real property and pays taxes on a monthly and annual basis. The following should be considered when establishing a Mexican corporation:

• Minimum capital requirement: $50,000 MXN (~$4,000 USD)
• Minimum of two shareholders
• A shareholder’s investment establishes their percentage of ownership
• In order to establish the corporation, initial stockholders must deposit at least 20% of the total share value into a bank account in the name of the corporation. The remaining 80% must deposited into the same account according to a schedule established by the shareholders.
• The company may be managed by a single individual (Administrador Unico) or a board of directors (Consejo de Administración) (who may or may not be shareholders). Directors are appointed by a meeting of shareholders for a specified period of time and are subject to dismissal.
• The supreme authority of the company is the Shareholder’s Meeting
• Ordinary shareholder meetings are held at least annually to appoint or release directors, establish compensation and approve the company’s financial statement. Extraordinary meetings can be held as required to modify company bylaws or for any other reason.
• Decisions in ordinary shareholder meetings must be approved by at least 51% of the votes. In extraordinary meetings, decisions must be approved by at least 75% of the votes.

These business entities are established through a legal document called a Constitutiva. From a legal, accounting and business administration perspective, there are no meaningful differences between a Mexican corporation and a Limited Liability Company. The only significant differences are those related to the formation and management of the company, as indicated above.

According to the Ley de Inversion Extranjera (Foreign Investment Law), in becoming a member or shareholder of a Mexican business entity,  you agree to act and be treated like a Mexican citizen in the context of property ownership and business operations. Any attempt to seek protection from your country of origin can result in forfeiture of your shares or membership in that business entity.

One of the advantages of establishing a Mexican business entity is the ability to hire employees. Foreigners need to be aware that Mexico’s laws and traditions generally favor the employee over the employer in any dispute. For this reason, it is important to learn what constitutes fair treatment of workers in Mexico and how to protect your business interests in the event of a conflict. We strongly recommend that foreigners intending to hire employees in Mexico download and study our Employment Guide.

Other Business Structures
There are several other types of business entities in Mexico that don’t often apply to foreigners starting a business here. These include non-profit organizations called Associación Civil (A.C.), which are mostly charitable groups, and professional organizations called Sociedad Civil (S.C.), which are generally comprised of accountants, lawyers, teachers, engineers and others with shared disciplines. If you have an interest in starting one of these types of business entities, please contact us for more information.

Business Opportunities in Mexico
Mexico’s modernized economy is more vibrant than is generally recognized and offers a unique opportunity to foreigners thinking of starting a business.  Over the past ten years, Mexico’s stock market has outperformed the S&P 500 by 400%. Economists estimate that Mexico’s Gross National Product (GDP) will grow more than twice as fast as the United States’ in the coming year. Surprisingly,  job growth in Mexico exceeded that of the United States over the past two years. In the last ten years, the public and private sector have invested millions in new or improved infrastructure, including highways, airports, broadband Internet, schools, health care facilities and shopping malls.

If you are looking for a new career, see a fresh opportunity or have special skills that are needed in Mexico, it’s never been easier to start your own business “south of the border”. Yucatan Expatriate Services is here to help. We offer a full range of consulting, accounting and legal services to ensure that your business startup is done right the first time.

Instead of going to the INM offices to find out which documents are required for your visa activity, you are now required to go online to the INM website first. The website has an entry page in English, but all subsequent pages are in Spanish.  For many expats, the process is too confusing to do alone. But if you go to the INM offices without having completed this process and without the resulting documents, you will be turned away. One customer found this out the hard way… after waiting in line for over an hour.

Online Immigration Assistance

For $250 pesos, YES will assist you in completing the online visa application process, provide you with all the necessary printed forms to take to the INM offices, and assist you in any follow up activities online. Bring your passport, existing FM2 or FM3 visa, and a utility bill from Telmex, CFE or Japay, to the YES offices. We’re conveniently located in Garcia Gineres with ample parking (see a map here), and our bilingual project managers will walk you through the online procedure.

In less than one hour, you will be walking out the door with the necessary documents to take to the INM office, guaranteeing that the time you wait in line there will not be wasted. You will also have detailed instructions on how to use the NTU tracking number they give you to track the progress of your visa application online. (Of course, if you’d rather we take care of the entire process from start to finish, we can do that too).

Lorna Gail Dallin recently renewed her documents with YES. She says, “I Just didn’t feel like the struggle,  so I put myself in the hands of YES to renew my FM 3 electronically! The staff at YES was expert and efficient and offered follow up, should I need it.   Thanks Betty!”

When it is time to renew your FM3 or FM2 visa in Merida, call 927-2437 or email info@yucatanyes.com to make your appointment.

These are the three options that foreigners can use to import a car. These options also apply to other licensed vehicles, including motorcycles and trailers:

Option #1  “With your Tourist Visa”
With a tourist visa (FM-T), you are allowed to import your car and drive it in Mexico for a period of up to six months from the first date of entry of the vehicle into the country. These six months have no extension, which means that you have to remove your car before the end of this period.  If you have plans to stay longer in Mexico, then you have to leave the country with your car and return after completing the procedure again.

Option #2 “With your FM2 or FM3 Visa”
In this case, you can keep your car in Mexico for the same period authorized in your FM3 or FM2 Visa for your stay. When your visa expires, the permit for your car will expire too, but it will be renewed for the same period of time that the FM3 or FM2 visa is renewed. If you entered the country with a tourist visa and then applied for and received an FM3 or FM2 visa, the car doesn’t have to be removed from the country. You only need to notify customs within 15 days of your change of immigration status.

Option #3 “Permanent Import” (Nationalized Vehicle)
Permanent imports are regulated by and require a permit from the Secretary of Economy, but there is a special provision for used vehicles that can be imported without a permit. These vehicles satisfy the following rule: they are exactly 10 years old from the year of import and are manufactured in NAFTA countries. For example, in 2010, cars built in 2000 can be imported permanently without a permit if manufactured in the U.S., Canada or Mexico. Either with or without a permit, the procedure for permanent importation has to be done using  a customs broker. The importer can hold an FM3 or FM2 visa or be an inmigrado or a Mexican citizen.

Mexican customs (called Aduana in Spanish) uses the Bank of the Mexican Army (Banjercito) for payment of the first two options. After payment, Banjercito will issue a special sticker that allows the car to be driven legally in Mexico. Without the sticker, the vehicle will be considered illegal and is subject to confiscation by customs.

Before bringing your vehicle to Mexico, you must have the following documents: 

• Original and Copy of Passport or Birth Certificate
• Original and Copy of Vehicle Title
• Original and Copy of Vehicle Registration
• Driver’s License
• Proof of Return of any Previous Vehicle (If applicable)

If you are not the vehicle owner, you will need to provide a document showing the relationship you have to the owner, which could be a marriage certificate, birth certificate, etc. If the vehicle is in the name of a corporation, the company must provide the title of ownership and proof that you are an employee.

Temporary Importation Procedures
The Mexican government regulates the temporary importation process through the Import Control Modules and temporary entry of vehicles, called CIITEV (Control de Importación e Internación Temporal de Vehículos in Spanish) There are three ways to obtain a temporary import permit.

On The Road
With the exception of Baja California, when driving into Mexico, about 16 miles south of the Mexico-United States border, you will be stopped by customs. The offices of the Aduana and the CIITEV modules in the Banjercito branches are located at these facilities. Enter the offices of the Aduana and fill out the forms requesting temporary vehicle importation. You will have to sign a commitment where you promise to remove your car within the time period allowed.

The procedure costs $27.00 USD and can be paid in cash or credit card at the CIITEV module in the Banjercito branch.  If you pay in cash, you will have to pay the fee and a deposit to guarantee the return of the vehicle abroad in the time period allowed.  This deposit varies depending on the manufacturing year of the vehicle:

If you pay by credit card, then you won’t need to pay this deposit. In the event that you do not remove your vehicle before the time period expires, Banjercito will charge the penalties automatically to your credit card.

At The Consulate
You can obtain a permit for temporary importation at any Mexican consulate in the United States that has a CIITEV module. In this case, you can start the process up to 6 months in advance. The following consulates are known to have CIITEV modules:   

• Chicago, Illinois
• Austin, Dallas, Dallas Fort Worth and Houston, Texas
• Los Angeles, San Bernardino and Sacramento, California
• Albuquerque, Nuevo México
• Denver, Colorado
• Phoenix, Arizona

At the consulate, ask for the permit of temporary importation of vehicles and sign the declaration of commitment.  The fee is $36.00 USD plus tax and the payment can only be made using a credit or debit card issued by a non-Mexican bank in the name of the importer.

By Internet
Why wait? You can do the entire procedure over the Internet right now.  This is a service that the General Administration of Customs offers and is operated by the Banjercito website.

Click the link below, fill in the form, scan the complete list of documents required and email them to Banjercito. The cost of the procedure is $ 45.00 USD plus tax and can only be paid with a credit or debit card issued by a non-Mexican bank in the name of the importer. Once the registration and payment is done, Banjército will email you a confirmation and the estimated date when the importation documents will be mailed to your home, usually within nine calendar days.

 http://www.banjercito.com.mx/site/siteBanjer/iitv/instruccionesIITV_ing.html

Removing Your Vehicle
When the temporary import expires, you must present your vehicle and your temporary import permit to Banjercito and they will give you your return certificate. Make sure they take the sticker off your vehicle to be deactivated from their system. You will be welcomed to come again and bring your car during your next visit.

IMPORTANT: if you do not remove your vehicle from Mexico before the permit expires, you will be subject to penalties and your car can be confiscated by the Aduana at any customs location in Mexico or at the border. Don’t let this happen to you.

Permanent Importation
Importing your vehicle permanently involves a more complicated process. You must hire a customs broker who will collect the required information, which includes the documents for temporary importation plus proof of legal residency or citizenship. The broker will file the necessary forms with the government. You will pay an import duty based on the type and age of the vehicle, as well as other taxes and a fee to the customs broker.

After the vehicle is officially imported, you are required to take the proof, called a pedimento,  to the Departamento de Registro de Control Vehicular to obtain Mexican license plates for the state in which you reside. It is important to understand Spanish or use the services of a translator so you can fully understand any complications or additional requirements that may arise in your specific case. You can read about one woman’s  first-hand experience here. 

For those who intend to live full-time in Mexico, another option is to sell your foreign car in your country of origin before entering Mexico, then purchase a new or used vehicle in Mexico. Nearly all of the major makes and models of cars are available and represented by authorized dealers. In fact, there are several smaller and more affordable car models available only in Latin American countries.

If you have any questions about importing your vehicle into Mexico or need any assistance, YES can help you with the entire process. For more information, please contact us at info@yucatanyes.com. We would be pleased to hear from you.

You don’t want to miss the beautiful Malecón and downtown of Campeche, or historic towns like Valladolid and  Tizimin, full of old colonial buildings and delicious food, or  the beautiful beaches of the Caribbean, the ruins of Uxmal and Chichen Itzá, cenotes, caves, and the many other things the Peninsula  offers.  The best way to explore is on the road because driving gives you the freedom to move around the Yucatan on your own schedule and lets you experience places and people you may not see on a bus or tour.

But before you decide to drive either in Merida or the Yucatan, here are some things you may want to know.

You can drive legally in Mexico using a valid driver’s license issued by other country, but if you are going to live in Mexico, it is better to carry a Mexican driver’s license (licencia de conducir).

To apply for a Mexican driver’s license, you will need the following documents:

• FM3 or FM2 Visa (original and photocopy)
• Proof of address (CFE, Japay or Telmex bill less than 3 months old, original and photocopy).
• Passport signature and photo page (original and photocopy)
• Fee of $212.00 MXN.

You will also be required to do the following:

• Pass a written exam about the rules for driving in Yucatan.
• Pass a practice exam. This usually means demonstrating that you can park a car, so you will need to take a car with you.

The written exam can be taken in English, but the rule book for driving in Yucatan is in Spanish. In Yucatan State, it’s called, Reglamento de Vialidad para el Estado de Yucatán. You can purchase it for $20.00 pesos (less than 2 dollars) at the same offices where you get your driver’s license.  The rule book is 159 pages, so it is a good idea to read and study it before taking the test. After you receive your driver’s license, you should keep the rule book with you in your car.

The written exam asks either trick questions or questions of common sense, so just relax and answer as if you were driving.

This is an example of the questions you will find:

You are driving your car through a city and in front of you is a bicycle; to the left is a solid line. What should you do?

a [_] Tailgate the bicycle.
b [_] Stay behind the bicycle.
c [_] Wait for a broken line to pass.
d [_] Honk your horn to make the bicycle move over.

In Mérida, there are two places where you can obtain a driver’s license:

• Departamento de Registro y Control Vehicular

Location: Calle  61-A  #494 x 88-A and 90 Colonia Centro
Big building across from the Parque Centenario Zoo
Hours:  Mon-Fri: 8:00 to 14:00, Sat: 8:00 to 13:00
Phone: (999) 923-6540 or (999) 928-5028

• Convention Center Siglo XXI  (in the parking lot)

Location: Calle 60 north Col. Revolución Ex-Cordemex
Hours: Mon-Fri: 8:00 to 14:00, Sat: 8:00 to 18:00
Phone: (999) 981-6420

These two are the only permanent offices in Yucatan State. For those who live in Progreso, Valladolid and other areas, the government provides a mobile office that transports all of the resources needed to obtain a driver’s license to the different locations of the state.

The mobile office has the following schedule in 2010:

• Valladolid:  May 7^th  to 11^th, and October 3^rd  to 7^th
• Progreso: June 20^th  to 24^th 
• Tizimín: July 20^th to 24^th

It is also very important to purchase Mexican auto insurance. U.S. or Canadian auto insurance is not valid, no matter how comprehensive your coverage is, and it will not cover your financial obligation to people or property damaged if you have an accident while driving. Mexican auto insurance is suprisingly inexpensive compared to that in the United States or Canada.

If you are driving between the states, especially between Yucatan and Quintana Roo, don’t be surprised if you are stopped at a checkpoint (punto de revisión) by a military detail to inspect for narcotics and firearms. They do not inspect every car, but make random selections. If you are stopped, they will ask you to get out of the car (bájese del automovil, por favor) and open your trunk (abra su cajuela). They can examine the contents of your car and luggage like security personnel at an airport. Don’t panic. If you are not carrying drugs or firearms you have nothing to worry about.

Of course, like every other country, drivers are prohibited from drinking alcohol while driving a vehicle. Drunk driving is considered a major violation in México. There are often random checkpoints (retén) at  various locations where the police will require you to take a breathalyzer test (alcoholímetros).

Another thing you should be familiar with is the gas station.  In México, PEMEX stations are the only gas stations in the entire country, and are owned by the government, which means the price of gas is the same at all the stations. You probably are used to pumping the gas yourself, but here in México this is done by an attendant, who will ask you how much you want to spend (cuanto?). Then they will ask for the type of gas you want (magna or premium).  You should check the pump to be sure it is set to $0.00 before the attendant starts filling your tank, and also be sure the correct change is returned after you pay. Most gas stations do not accept credit or debit cards. If the attendant performs any other services, such as washing the windshield, a tip of five to ten pesos is customary.

Should you need assistance getting on the road, YES can help you to obtain your driver’s license and to purchase Mexican auto insurance. For more information please contact us at info@yucatanyes.com or download our Insurance Guide, which provides detailed information and advice.

If you are a foreign worker in Mexico, you may find some of the laws and practices to be different from those in your home country. Mexico has strong laws protecting its workers.

In Mexico, Federal Labor Law regulates labor relations, labor unions and labor courts (Labor courts are all part of the Board of Conciliation and Arbitration). The law establishes basic rules such as minimum wage, the length of the work week, length of work days, overtime, etc. The law is Federal, but it is enforced in some cases by state officials.

Article 123 of Mexico´s Constitution guarantees worker rights as constitutional rights, and according to this law, every worker has, among others, the right to a safe workplace, the right to equal pay for equal work, the right to indemnity if he or she is hurt on the job, and the right to be free from forced labor.

There is a single court in every state that deals with most labor and employment disputes, including collective labor relations, unjustified terminations, on-the-job injuries and equal pay problems. Each court is called Junta de Conciliación y Arbitraje (Conciliation and Arbitration Board). There are also labor inspectors in Mexico who inspect the workplace to ensure that employers follow occupational safety and health requirements, as well as other standards and laws.

If you will be hiring employees or are considering getting a job in Mexico, the following concepts are important to understand:

Elements of Labor Law

Minimum wage (Salarios Mínimos): There is a published listing in Mexico of minimum wages for general and specific categories of work. The minimum wage varies depending on the economic region of the country. Mexico is divided into three general zones: A, B and C. Each city or geographic area fits into one of these three categories. For example, Mexico City is included in Zone A, the city of Monterrey is included in Zone B and the state of Yucatan is included in Zone C.

The Work Week (Semana Laboral): An employee can work a maximum of 48 hours per week without being paid overtime.

The Work Day (Jornada Laboral): For every 6 days of work (Monday through Saturday), employees are entitled to one day of rest with full pay. Therefore, when you hire a full time employee, you will be paying them for 7 days per week, not 6 days. When hiring in Mexico and deciding on a salary, it is important to keep in mind that you are hiring per week and not per day.

Work Shifts (Turnos): There are 3 work shifts in a Mexican work day:

• Day shift (eight hours)
• Night shift (seven hours)
• Mixed shift (7 1/2 hours). (The mixed shift is part day shift and part night shift.)

The hours worked that exceed these limits are considered to be overtime and must be paid as such. Overtime hours are to be paid double the hourly rate and cannot go over 9 hours per week.

Sunday Bonuses (Prima dominical): The preferred day of rest in Mexico is Sunday. Workers that are required to work on Sundays by law must receive a 25% bonus over their ordinary wage for that day.

Overtime (Horas Extras): Overtime hours (those hours over and above normal working shift hours) must be paid double. Hours worked over the allotted 9 overtime hours per week must be paid at triple the normal hourly wage. If the overtime hours fall on a holiday, they are to be paid at triple the hourly wage, even if they fall within the allowed nine overtime hours per week.

Salary (Salario): The law determines a minimum daily wage for every category of services in any given geographical area. The law also declares a minimum salary for each category of work, as well as a minimum increase after an annual salary review. Salaries vary depending of the type of work and the area of expertise. As anywhere, minimum salaries are not always a good reference when hiring specialized workers and should be taken as a rule of thumb and a number which the employer must not go below.

Additional Information

These are just a few of the laws and rules that any employee or employer in Mexico must be familiar with. If this subject is of interest to you, we encourage to learn more in our YES Employment Guide, downloadable in our Knowledge Store. The YES Employment Guide includes all the important aspects of employment in Mexico, both for a business and corporation AND for personal help such as housekeepers or albañiles. The YES Employment Guide covers the issues of hiring and firing employees, where to advertise for workers, what actions are valid justification for firing, acceptable firing practices, customs and laws for household help, and much more.

For more personalized information or for legal or other types of assistance in any of these matters, please contact us at info@yucatanyes.com.

Inmigrante could be translated as ‘immigrant’. This is a foreigner who holds an FM2 or FM3 visa and is legally in the country with the purpose of living and working, and perhaps settling and becoming an inmigrado.

Inmigrado could be translated as ‘immigrated’. This is a foreigner who has acquired the rights of a resident of Mexico.

In our last article about immigration we explained the differences between FM2 and FM3 visas. After holding an FM2 visa for five years, an inmigrante may apply for inmigrado status. We would now like to explain the rights and obligations of the inmigrado.

Rights of an Inmigrado

• They have the individual guarantees that the Constitution grants to Mexicans, with the exception of the political guarantees that are exclusively reserved for Mexican citizens.
• They do not need to renew their inmigrado status. They can work at any legal activity, without having to request permission of the INM. Some professionals need to file their degree at the Dirección General de Profesiones. In this case you will have to check with INM if you are working under a professional designation like Engineer, Architect, etc.
• They can travel freely in and out of the country, as any Mexican citizen.
• They can acquire property, with the exception of the properties located within 50KM of the border and the beach (see our Fideicomiso article)
• Inmigrado visa holders do not need a visa in their passports.
• Inmigrados cannot vote in Mexico.

And of course inmigrado status allows them  to purchase a car, allows them to receive social security (from Mexico), to open bank accounts in Mexico and also work for a Mexican company.

Obligations of an Inmigrado

• They have to uphold the responsibilities of citizens as spelled out in the Constitution.
• They have to carry their FM2 with them at all times, and have a copy of it at home.
• When leaving and entering the country they have to fill out and return to the immigration authority the FME (Forma Migratoria Estadistica).
• They must inform the INM of any change of employment, marital status and nationality.

Yucatan Expatriate Services (YES) is available to assist you in any and all aspects related to this subject. If you are interested in getting more detailed information, please contact us at info@yucatanyes.com . We also recommend purchasing the YES Inmigration Guide with comprehensive information about visas, terms, costs and required documentation.

How to change foreign currencies into Mexican Pesos
Exchanging currency from another country into Mexican pesos at the bank is difficult, at best. The bank will ONLY do this if you are an account holder and, even then, the bank will probably only accept the money as a deposit and will not give you cash. Banks usually have high currency exchange fees due to high operating costs. Currency exchange is not their main activity, and handling foreign currencies at bank branches becomes problematic and complicated.

The exception to this rule is the ATM machine. Any ATM machine in Merida will take your ATM card from your country of origin and give you pesos when you make a withdrawal. Some banks have the added service of letting you choose between pesos or US dollars. The ATM at the Bancomer branch on Paseo de Montejo in Merida has this option. When you exchange dollars (or other currencies) for pesos by withdrawing money using your ATM card, you are usually getting close to the best exchange rate that you can find.

Foreign exchange stores offer better rates for immediate currency exchange. These are small money stores that handle buying and selling of different currencies on a constant basis through transfers or walk‐in traffic within the Mexican borders. In Merida there are currency exchange houses in hotels, malls, downtown, and in the north section of Merida. There is no need for an account, and they will exchange the currency and provide you with a receipt. Most of the time, these foreign exchange houses give better rates than the local banks (though you may want to check the bank for reference).

Investment agencies or brokerage firms, such as Monex, Canto, Vector and similar institutions, offer financial advice and investment banking services, as well as currency exchange at often the best rates available. These institutions often pay higher interest rates on your money than your savings or investment accounts in the bank, but present a different investment picture. Currency exchange, as well as other transactions, are only available to people or companies with an account at these firms. If you will be using these services regularly, the best choice is to open an account with one of them. Brokerage firms in Mexico are reliable institutions and often offer more personalized attention than a bank. The requirements are the same as with the banks for opening a new account. The offerings and workings of these investment and brokerage firms in Mexico are more extensive and complex than the offerings of retail banks. Retail banking is covered in the Yucatan Expatriate Services “Personal Finance Guide”, located in our online Knowledge Store, and investment banking will be covered in the upcoming “Personal Investment Guide”.

Sending money to Mexico from abroad
The most commonly used method to send money to Mexico from abroad is Electronic Funds Transfer, which is quick and easy. This process must be done with a bank or a brokerage firm that has offices or affiliates in other countries. Once the accounts are set up, money can be transferred to Mexico and be available for your use within a few hours.  For smaller amounts, you can use Western Union, which has offices in the Elektra stores locally. And one-time transfers can be made through the aforementioned investment banks as well.

Sending money abroad from Mexico
To send money to another country from Mexico, you must fill out a form at the bank requesting international payment. The form will require information including the beneficiary’s name, account number, bank, etc. The banks require a minimum age of 6 months on the account from which the transfer is being sent, and the transfer cannot be higher than the minimum balance required on the account.

Whether sending money out of or into Mexico, it is best to check with the banks involved to understand exactly what information is required to complete the transaction.

Since last May, in Yucatan, as elsewhere in Mexico, the government has been advertising to the entire population about how to recognize, treat and hopefully prevent the incidence of Swine flu. Here’s what you may see on signs and in advertisements throughout Mexico about H1N1:

Signs and Symptoms:

• Temperature over 38 degrees Celsius(100 Fahrenheit)
• Feeling hot, and a sore throat
• Dry cough and irritated eyes
• Headache that begins intensely
• Body aches or joint pain
• Weakness and feeling tired
• Runny nose
• May have diarrhea or vomiting
• Difficulty breathing

If you have one or more of these symptoms, and you suspect you might have the flu, the best thing to do is stay home. Do not go to work or outside the house; drink liquids; cover your nose and mouth; above all wash your hands after sneezing or coughing. Advise your family members or a close friend to keep watch over you. If the fever, cough, headache or general aches and pains continue, then you must see your doctor.

Recommendations for Prevention

• Keep your distance from people with respiratory infections.
• Do not greet people with a kiss or handshake.
• Do not share food, glasses or silverware.
• Ventilate and allow the sun to enter the house, offices and all closed places.
• Keep kitchen and bathroom counters, water faucets and handrails clean. Also clean toys, telephones, door handles or other commonly-used objects.
• If you have a sudden high fever, cough, headache, aches and pains and pain in the joints, immediately see your doctor or healthcare provider.
• Cover up and avoid quick changes in temperature
• Eat fruits and vegetables that are rich in vitamins A and C (carrots, papaya, guayaba, oranges, mandarin orange, limes, lemons, pineapple).
• Wash your hands frequently with soap and water.
• Avoid exposure to environmental contaminants.
• Do not smoke in closed areas or close to children, seniors or the sick.
• If you show any of the symptoms, see your doctor immediately.
• Use a nose and mouth mask when in crowded places.

Try not to panic or become alarmed. Following these recommendations will greatly reduce your risk of catching this disease or spreading it. Remember that the sooner the virus is detected, the greater the possibilities of controlling it and preventing a tragedy.

Many people here followed this advice, including wearing masks in public places, especially in the spring and summer of last year. Tourism to Mexico and the Yucatan fell precipitously when the media reported that the flu was mostly in Mexico, and has been steadily climbing back up as the H1N1 flu spread around the world and as it became apparent that it was no less dangerous than the common yearly flu.

Incidence of H1N1, Here and Around the World
The first H1N1 flu incident was recognized in Mexico in March 2009. By April, the first incident was reported in the United States (although it had been recognized a month earlier), and on April 26, “the first cases of novel influenza A (H1N1) virus infection outside of the United States and Mexico were reported in Canada.”  By May 6, 309 people had laboratory-confirmed cases of H1N1 in 21 countries outside of Mexico and the United States.

As of February 2010, the 2009 H1N1 virus is still quite prevalent around the world. According to the Center for Disease Control,

Based on FluNet data collected by 27 countries from January 31, 2010 to February 6, 2010, 93% of specimens testing positive for influenza were typed as influenza A and 7% as influenza B.  Out of all subtyped influenza A viruses, 97% were 2009 H1N1 positive. (http://www.cdc.gov/h1n1flu/updates/international/)

And in the latest update from the World Health Organization, we can see that almost 16,000 deaths in total have been attributed to it thus far:

As of 14 February 2010, worldwide more than 212 countries and overseas territories or communities have reported laboratory confirmed cases of pandemic influenza H1N1 2009, including at least 15,921 deaths.

If you didn’t know better, you might think these are frightening statistics, but in truth, the incidence of flu in the Northern Hemisphere, where it appears to have started, is in decline. And the number of deaths attributed to the H1N1 virus is still well below the deaths attributed to normal seasonal flu in a typical year (according to an article in CNN last year).

Though H1N1 continues to spread in regions throughout the world, it has not resulted in the high number of serious complications, hospitalizations and deaths many public health experts initially feared. In fact, according to a February 12 report from the U.S. Centers for Disease Control and Prevention (CDC), the proportion of deaths attributed to pneumonia and influenza continues to decrease and is now lower than expected for this time of year. (www.aidsmeds.com)

Flu Shots
Despite the fact that the incidence of the swine flu is declining and the alternate fact that the death rate from the H1N1 flu was no worse than common flu, you still may find yourself wanting a flu shot. Many experts agree that there may be a resurgence of the H1N1 flu in the fall, due to the fact that it is the most prevalent flu strain in the current population, apparently crowding out the other, more traditional, strains.

At the writing of this article, the H1N1 flu shot is available in Merida only at public hospitals (such as O’Horan and T1) for people over 18 and under 65 years old (people over 65 are less vulnerable to this particular strain). Shots for children will be available in early March 2010. Anyone fitting these criteria can walk into a public hospital and receive the H1N1 vaccination free, regardless of immigration status. Women who are pregnant or breastfeeding are discouraged from getting the vaccine.

Regular flu shots (Influenza Estacional in Spanish) can be obtained at private hospitals in Merida. Both Clínica Merida and Star Médica reported a cost of $350 pesos for the regular flu shot in January 2010. Call the front desk and ask for “Inyección por Influenza”.  

IMSS also has the regular flu shot but will administer it only to patients over 60 years of age or under 2 years of age (those not covered by the public availability).

As of this writing, the amount of flu vaccine is limited and insufficient for the entire population, though additional vaccines are being obtained. We recommend that you call before going to any of these locations for your flu vaccine. For more information, call IMSS at (999) 929-3022 and ask for “Medicina Preventiva” (Preventative Medicine).

To find out more about the Mexican Healthcare system, especially as it works here in Merida go to our Knowledge Store  and download the YES Healthcare Guide. It includes phone numbers of clinics, hospitals and English-speaking doctors, as well as extensive information on how to navigate the Mexican healthcare system. And as always, if you need help, the YES staff is available to assist you.