Own Mexican entity, or a reseller
Ask the legal name of the employing company on the employment contract. If it is a third party your provider subcontracts, you have two counterparties and one relationship.
Buyer's guide
Judge a Mexico EOR on six things: whether it employs through its own Mexican entity, whether it holds REPSE registration where specialized services apply, whether pricing separates the management fee from statutory cost and shows severance accrual, whether it can actually recruit the people you need in Mexico, whether it stands with you in an IMSS or labor matter, and whether it lets you leave and helps you transition to your own entity. The rest is presentation.
Staffing in Mexico, a Gracemark Global Group company.
You get written answers to the full due-diligence list, the employing entity and a priced model.
01The situation
Procurement usually receives three proposals that look identical: compliant employment in Mexico, fast onboarding, one platform, dedicated support. The differences only appear when something happens. A candidate declines because the benefits package is minimum legal. An employee is terminated and a severance invoice appears that nobody budgeted. An audit asks who supervised the work. You open your own entity and discover the contract makes leaving expensive.
So the useful questions are not about features. They are about who is legally on the hook, whether the work as actually performed matches the structure on paper, and what happens on the worst day of the engagement rather than the best.
Use the checklist below on every provider you are considering, including us. If a provider cannot answer one of these in writing, that is the answer.
Due diligence on an EOR
Verifying who the legal employer is, whether that employer is registered for the work being performed, how cost and liability are allocated, and what the exit looks like, before any employee is onboarded.
Tell us the situation in one line. A Mexico specialist comes back with the route we recommend and why.
Get My Mexico Employment Route02What we do for you
One accountable relationship from workforce design through ongoing delivery.
Ask the legal name of the employing company on the employment contract. If it is a third party your provider subcontracts, you have two counterparties and one relationship.
Mexican subcontracting rules turn structure into liability. Registration matters when the engagement involves specialized services rather than plain employment.
Salary, statutory burden, management fee and severance accrual as separate lines. A single blended number hides which part rises when you give a raise.
Employment infrastructure is worthless if the seat stays empty. Ask whether the provider recruits in Mexico itself, in the cities where your talent actually is.
Ask who represents you in an IMSS or labor matter, and how a lawful termination is handled and priced before you need one.
The best providers plan their own replacement: a modelled crossover point and migration to your own entity with continuity of service, benefits and seniority.
Send us the roles, the headcount or the question. A Mexico specialist comes back with the recommended model, the locations and what it costs.
Get My Mexico Employment Route03Choose with confidence
We are the only partner that can run every one of these routes for you, so the recommendation is the right one, not the only one we sell.
| Question to ask | Answer that should worry you | Answer you want |
|---|---|---|
| Who is named as employer on the contract? | We will confirm later | A named Mexican entity, in writing, before onboarding |
| Do you recruit in Mexico yourselves? | We employ, you source | Local recruiting in the cities where the roles are |
| Is REPSE relevant to our engagement? | It does not apply to us | A structure review of the actual work, and registration where it applies |
| How is severance handled? | It is billed if it happens | Accrued, quantified and planned from day one |
| Can we see the fee separately? | Pricing is all-inclusive | Fee, statutory cost and accrual as separate lines |
| What currency do we pay in? | Pesos, at spot | USD invoice, MXN payroll, exchange-rate protection |
| What if we open our own entity? | Minimum term applies | No exclusivity, no lock-in, supported transition with seniority preserved |
Not sure which row is yours? Give us the roles and the timeline and we will tell you, with the cost of each option.
Tell Us Which Model FitsRun the test on us
Send your roles and your situation. You receive written answers to every question on this page, a structure recommendation, and a priced employment model in USD with the fee and statutory cost shown separately.
Answers
The questions buyers ask us before they commit. If yours is not here, send it and a Mexico specialist answers it directly.
Ask a Mexico SpecialistTest six things. First, is the provider a Mexican operating company employing through its own local entity, or is it reselling someone else's. Second, does it hold REPSE registration where specialized services apply. Third, does it price transparently, with the management fee separate from statutory cost and severance accrual shown. Fourth, does it recruit in Mexico itself rather than waiting for you to source. Fifth, who represents you in an IMSS or labor matter and how a lawful termination is handled. Sixth, will it tell you when EOR is the wrong answer and help you transition to your own entity.
A platform is convenient when you are hiring one person in fifteen countries. A country specialist wins when Mexico is the operation: local recruiting to fill the roles, local supervision when the work is a scope, REPSE where required, and a team that answers to you in your timezone. If Mexico matters to your plan, depth in Mexico is the differentiator.
Who is the legal employer on the contract. Is there a minimum term, minimum headcount or exit charge. How is severance handled and accrued. What happens to the employee when we open our own entity. Who recruits if we cannot find the person. What happens in an IMSS or labor audit, and who represents us.
A quote that cannot be broken into salary, statutory burden and fee. Silence on severance. A structure that describes core operational work as employment lending. Reluctance to name the employing entity. A contract that penalises transition to your own entity.
We are the Mexico workforce and expansion practice of Gracemark Global Group, operating through a Mexican entity with local recruiting, employment and payroll capability, REPSE registration for applicable specialized services, USD invoicing with exchange-rate protection, US public-company compliance standards across the border, no exclusivity, no lock-in, and supported transition to your own entity when the economics say so.
Send the roles, the headcount, the scope or just the question you cannot get a straight answer to. You get the route that actually fits, what it costs fully loaded and what happens first, in writing, from the team that would run it.
Prefer to see a recommendation first? Build your plan in 2 minutes.
You get written answers to the full due-diligence list, the employing entity and a priced model.