Choosing the right Employer of Record (EOR) in Mexico is critical — selecting the wrong one can lead to fines, back payments, and compliance violations under the country’s 2021 outsourcing reform.

• While Globalization Partners markets itself as a global hiring solution, its Mexico operations rely on a fiscal address without a real, staffed office or active HR team.
  
  

• In contrast, Human Resources Mexico (HRM) is a fully REPSE-registered, locally operated EOR with over 16 years of continuous presence in Mexico.
  
  

This comparison highlights the key differences between HRM and Globalization Partners, focusing on compliance, payroll, support, and legal risks. It aims to help companies select a truly compliant employer in Mexico.

1. REPSE Registration

Mexico’s 2021 outsourcing reform made REPSE registration a legal requirement for any company offering Employer of Record (EOR) or labor-related services. Without this certification, a provider cannot legally hire or manage employees for foreign clients within the country.

• Human Resources Mexico (HRM) is fully REPSE-registered and compliant, legally authorized to act as a direct employer in Mexico. HRM operates under Mexican law, managing payroll, benefits, taxes, and employee registrations through its verified entity with full government oversight.
  
  

• Globalization Partners also holds a legal entity and REPSE registration in Mexico, but it operates only through a fiscal address, not a real office or in-country HR team.
  
  

Only REPSE-certified companies like HRM can legally function as Employers of Record in Mexico, ensuring full compliance and protection for clients and employees.

2. Local Presence

A legitimate Employer of Record in Mexico must have a real, physical presence and a local HR team to manage compliance, employee relations, and payroll processes. Fiscal addresses or remote operations do not qualify as legal employer activity.

• Human Resources Mexico (HRM) has over 16 years of continuous operation with a physical office and a full bilingual HR and payroll team based in Mexico. Every process is handled locally by professionals trained in Mexican labor law and compliance.
  
  

• Globalization Partners does not have a physical office or HR team in Mexico. It operates remotely through partner networks and fiscal entities, many of which function as shell companies. This lack of in-country presence limits its ability to provide direct HR support or manage employees under Mexican regulations.
  
  

3. Independent Contractor Services

Under Mexican labor law, anyone working under the supervision or direction of a company is legally an employee, not a contractor. Misclassifying workers as independent contractors violates the Federal Labor Law and can lead to heavy fines and back payments.

• Human Resources Mexico (HRM) does not offer contractor or freelancer arrangements, ensuring full compliance with the Mexican Constitution, Federal Labor Law, and IMSS regulations. All employees are legally registered and protected under Mexican law.
  
  

• Globalization Partners promotes contractor management services, allowing clients to engage workers as freelancers. This approach risks violating the subordination rule in Mexico, where supervised or full-time contractors are considered employees by law.
  
  

HRM protects clients from misclassification risks that are common under global contractor models.

4. IMSS and CFDI Compliance

In Mexico, legitimate payroll must include IMSS registration for social security and CFDI issuance for tax compliance. Without these, the employment relationship is not legally recognized.

• Human Resources Mexico (HRM) registers all employees with IMSS, manages social security and housing contributions, and issues CFDI payroll receipts directly from its Mexican entity. This ensures complete compliance with labor, tax, and social security laws.
  
  

• Globalization Partners relies on third-party entities to process payroll. CFDIs are not issued directly from a certified Mexican employer, creating gaps in transparency and exposing clients to non-compliance under SAT and IMSS regulations.
  
  

HRM’s direct payroll management provides legal assurance and protection for both employers and employees in Mexico.

5. Support Model

Employee care in Mexico requires direct human interaction, not automated systems. A real Employer of Record must provide personal HR support that understands Mexican law, culture, and workplace expectations.

• Human Resources Mexico (HRM) provides 100% human-led bilingual support through its in-country HR and payroll team. Employees and clients communicate directly with real professionals in Mexico — no bots, no automation. HRM also guarantees employee access to all HR services they need.
  
  

• Globalization Partners operates mainly through digital platforms and international account managers based outside Mexico. Without a local HR team, support is limited to software interfaces and ticket-based systems, leaving employees without real-time local guidance.
  
  

HRM’s human-first approach ensures personal accountability and compliance that global tech platforms cannot deliver.

6. Pricing Model

Understanding total employment costs in Mexico is critical for compliance and budgeting. Some global platforms advertise simple rates but later add hidden service fees.

• Human Resources Mexico (HRM) applies a single transparent markup on gross taxable salary, covering all payroll, HR, and compliance costs. There are no onboarding, FX, or hidden charges. Clients always know their exact monthly cost.
  
  

• Globalization Partners uses a flat per-employee pricing model but adds extra charges for onboarding, compliance add-ons, benefits, and termination services. Once all add-ons are applied, the cost can be 10–15% higher than HRM’s all-inclusive pricing.
  
  

HRM keeps pricing simple, transparent, and fully compliant, while Globalization Partners adds layered fees that reduce clarity and increase overall cost.

7. Severance and Legal Handling

Employee termination in Mexico is heavily regulated. Under the Federal Labor Law, employees dismissed without cause must receive a 90-day severance payment, plus accrued benefits and mandatory legal documentation.

• Human Resources Mexico (HRM) manages all terminations locally in full compliance with Mexican labor law. HRM calculates and administers the 90-day severance, prepares legal documentation, and ensures that every process is properly filed with labor authorities. The client reimburses the payout, but HRM manages every legal step.
  
  

• Globalization Partners charges severance in advance each month as part of its pricing model, later refunding unused amounts. However, this process is not managed locally through a certified Mexican employer, creating gaps in compliance and risk during offboarding.
  
  

HRM ensures that every termination in Mexico is lawful, transparent, and fully compliant with government regulations.

8. Client Fit

The right EOR depends on whether a company seeks global reach or local compliance. Businesses hiring in Mexico must follow strict labor and tax laws that only local, REPSE-registered employers can meet.

• Human Resources Mexico (HRM) is ideal for SMEs and enterprises that need a long-term, fully compliant solution for hiring in Mexico. It’s the best choice for all white-collar companies that want to hire legally under Mexican labor and tax frameworks. HRM provides human-centered HR, payroll, and legal management designed specifically for Mexico.
  
  

• Globalization Partners suits large corporations hiring across multiple regions, with a limited focus on Mexico. Its broad global coverage comes at the cost of deep local expertise, leaving compliance gaps for companies that require full legal presence in Mexico.
  
  

For companies hiring exclusively in Mexico, HRM remains the safest and most compliant option.

9. Legal and Compliance Risks

Operating in Mexico without full REPSE certification or local legal oversight exposes companies to serious penalties. The 2021 outsourcing reform requires every EOR to be directly registered as the legal employer of its workers.

• Human Resources Mexico (HRM) operates with zero compliance risk, fully REPSE-registered and compliant with all Mexican labor, IMSS, CFDI, and tax regulations. Every employee is properly registered and managed under Mexican law.
  
  

• Globalization Partners faces moderate to high compliance risk despite having a legal entity in Mexico. Its operations run through a fiscal address without a real office or in-country HR presence, relying on remote and partner-managed structures.
  
  

HRM guarantees full protection and compliance for both clients and employees — something no global intermediary model can offer in Mexico.

Comparison Summary

Below is a side-by-side comparison of Human Resources Mexico (HRM) and Globalization Partners, focusing on their legal structure, local presence, and operational transparency in Mexico:

While Globalization Partners holds REPSE registration, it lacks a real operational presence in Mexico. HRM, by contrast, combines full legal certification with an in-country HR team and physical office, ensuring complete compliance, human service, and transparency.

Get a custom proposal today and hire legally with HRM.

FAQs

Is Globalization Partners REPSE-registered in Mexico?

Yes, Globalization Partners holds REPSE registration in Mexico. However, it operates through a fiscal address rather than a real, staffed office. This means it has legal certification on paper but no active in-country HR presence or direct operational capacity to manage employees locally.

Can Globalization Partners legally issue CFDI payroll in Mexico?

Globalization Partners’ payroll is not issued directly from an active Mexican employer entity. CFDI receipts are typically processed through intermediaries or partner structures, which limits transparency and compliance accuracy. In contrast, HRM issues CFDI payroll receipts directly from its own verified Mexican entity.

How does HRM manage compliance differently from Globalization Partners?

HRM manages all employment, payroll, and HR processes directly in Mexico through its registered local entity. It handles IMSS, INFONAVIT, and tax filings with Mexican authorities in real time. Globalization Partners operates remotely through partner structures, making compliance indirect and less transparent.

Which provider is safer for long-term hiring in Mexico?

HRM is safer for long-term operations because it combines REPSE certification with a real office, local HR staff, and 16+ years of Mexican experience. Globalization Partners, while registered, lacks a genuine physical presence, increasing risk in daily HR management and local legal enforcement.