Choosing the right Employer of Record (EOR) in Mexico is a legal and financial decision, not just an operational one. Under Mexico’s 2021 outsourcing reform, hiring through a non-registered provider can expose companies to severe fines, back taxes, and invalid employment contracts.

• While Pebl (Velocity Global) promotes fast, global employment through technology, it lacks the local legal foundation required to operate as a true employer in Mexico.
  
  

• In contrast, Human Resources Mexico (HRM) is fully REPSE-registered and has over 16 years of continuous in-country experience.
  
  

This comparison breaks down the key differences between HRM and Pebl — from compliance and payroll to support and pricing to help you choose a safe, legally compliant partner for hiring in Mexico.

1. REPSE Registration

Under Mexico’s 2021 outsourcing reform, every Employer of Record (EOR) must hold a valid REPSE registration to legally hire, pay, and manage employees.

This certification ensures compliance with the Federal Labor Law and confirms that the provider is officially recognized as a legitimate employer in Mexico.

• Human Resources Mexico (HRM) is fully REPSE-registered and compliant, legally authorized to operate as an Employer of Record in Mexico. HRM manages all employment responsibilities, including payroll, benefits, taxes, and labor compliance, under direct government supervision and regular audits.
  
  

• Pebl (Velocity Global) operates through fiscal partnerships and undisclosed local entities but has no public REPSE registration. Without this certification, it is not authorized to act as a legal employer in Mexico, creating compliance and liability risks for client companies.
  
  

Only REPSE-certified employers like Human Resources Mexico (HRM) can legally provide EOR services in Mexico with full protection for both clients and employees.

2. Local Presence

Local presence is one of the strongest indicators of a legitimate Employer of Record. A company must operate within Mexico, with real staff and infrastructure, to manage payroll, compliance, and HR matters lawfully. A fiscal address alone does not qualify as a physical or operational presence.

• Human Resources Mexico (HRM) has a physical office in Mexico, supported by a full bilingual HR and payroll team. With over 16 years of continuous local operation, HRM’s staff are born, educated, and trained in Mexico, ensuring cultural understanding and direct, in-person support for all employees.
  
  

• Pebl (Velocity Global) operates remotely from the United States and other global locations. In Mexico, it maintains only a fiscal address without an active HR office, functioning effectively as a shell company. This setup limits its ability to provide on-the-ground HR assistance or manage compliance with Mexican labor authorities.
  
  

HRM’s real local presence guarantees lawful operations and direct human support, something Pebl’s remote model cannot deliver.

3. Independent Contractor Services

In Mexico, the Federal Labor Law defines an employment relationship through the concept of subordination — when a person works under another’s direction, schedule, or control.

If this relationship exists, the worker must be treated as an employee, not an individual contractor. Misclassification can lead to fines, back pay, and tax penalties.

• Human Resources Mexico (HRM) does not offer contractor arrangements to protect clients from legal exposure. HRM only provides fully compliant employment under the Federal Labor Law, registering each employee with IMSS and issuing valid CFDI payroll receipts.
  
  

• Pebl (Velocity Global) promotes contractor and freelance payment services, allowing companies to hire workers as independent contractors. In Mexico, this model risks misclassification, since most “contractors” perform subordinated work. Such arrangements can trigger audits, retroactive benefits, and severe tax liabilities for the client.
  
  

HRM’s strict adherence to employment law ensures companies remain compliant, avoiding the risks associated with contractor-based hiring models.

4. IMSS and CFDI Compliance

Legal payroll management in Mexico requires two key obligations: registering employees with IMSS (Mexican Social Security Institute) and issuing official CFDI (digital tax receipts) through a certified Mexican entity.

These steps confirm lawful employment, tax reporting, and social security coverage.

• Human Resources Mexico (HRM) registers every employee with IMSS and issues CFDI payroll receipts directly from its legally registered Mexican entity. This guarantees accurate reporting of wages, taxes, and benefits to Mexican authorities, ensuring full compliance with labor and tax laws.
  
  

• Pebl (Velocity Global) lacks the authority to issue CFDIs in Mexico. Its payroll processes are often routed through intermediaries or partner entities that act on its behalf. This structure exposes client companies to compliance and tax risks, as employees are not directly paid under a certified Mexican employer.
  
  

Only HRM provides complete payroll transparency and legal assurance under Mexico’s strict labor and tax systems.

5. Support Model

Successful employment in Mexico depends on real human interaction, not automated support. Employees need direct access to HR professionals who understand local labor laws, culture, and workplace expectations.

• Human Resources Mexico (HRM) provides a 100% human-led HR service with bilingual experts based in Mexico. Employees and clients receive personal assistance for payroll, benefits, compliance, and legal matters. Every employee also gets guaranteed access to the HR services they need, ensuring a transparent and supportive employment experience.
  
  

• Pebl (Velocity Global) depends primarily on SaaS systems and ticket-based communication. Its support is managed remotely with limited local HR engagement, meaning employees cannot easily speak to a real HR professional in Mexico.
  
  

HRM’s human-first model ensures employees feel supported and valued, while Pebl’s platform-driven approach often leaves compliance and employee needs unresolved.

6. Pricing Model

In Mexico, understanding the full cost of employment is essential to maintain budget accuracy and compliance. Some global platforms promote simple pricing but later add undisclosed service charges that increase the real monthly cost per employee.

• Human Resources Mexico (HRM) uses a transparent single markup on gross taxable compensation. There are no onboarding, FX, or termination fees, and clients always know their total cost. HRM’s pricing covers all legal, payroll, and HR services with no surprises or hidden add-ons.
  
  

• Pebl (Velocity Global) advertises flat monthly fees but adds extra costs for compliance, offboarding, benefits management, and international wire transfers. These additional charges make the total cost unpredictable and often higher than expected.
  
  

With HRM, clients pay one simple, transparent rate with full cost visibility. Pebl’s total pricing can reach 10–15% higher than HRM’s all-inclusive structure once hidden platform fees are applied.

7. Severance and Legal Handling

In Mexico, severance is a constitutional right, not a company choice. Employees terminated without cause must receive 90 days of severance, plus accrued benefits such as vacation, Aguinaldo (Christmas bonus), and profit sharing (PTU). Handling this correctly requires local legal oversight and proper filings under the Federal Labor Law.

• Human Resources Mexico (HRM) fully manages severance and termination processes under the Federal Labor Law. HRM’s in-country HR and legal team calculate, document, and process severance through official payroll channels. The client reimburses the payout, but HRM ensures full compliance and protection for both employer and employee.
  
  

• Pebl (Velocity Global) pre-charges severance monthly as part of its pricing structure. However, it does not manage the process locally through a registered Mexican employer. This means terminations are not legally executed under Mexican labor authority supervision, leaving clients exposed to disputes or claims.
  
  

HRM’s locally managed severance handling ensures full legal compliance — something remote or partner-based entities like Pebl cannot guarantee.

8. Client Fit

The right Employer of Record depends on where and how your company wants to operate. In Mexico, local compliance and employee relationships require an in-country team, not just a global payment system.

• Human Resources Mexico (HRM) is ideal for SMEs, mid-size, and enterprise clients that want to hire employees legally and compliantly in Mexico. HRM focuses exclusively on the Mexican market, offering bilingual HR, payroll, and legal support with a fully human-centered approach. Every white-collar company that wants to hire in Mexico the right way fits HRM’s model.
  
  

• Pebl (Velocity Global) is designed for global corporations hiring across many countries through a single platform. However, its structure is not specialized for Mexico’s unique legal and cultural framework. Without a local HR presence or REPSE certification, Pebl’s model does not meet Mexican employment standards.
  
  

For companies prioritizing local compliance, employee trust, and hands-on support, HRM remains the superior fit.

9. Legal and Compliance Risks

Legal compliance in Mexico is strict and heavily enforced under the 2021 outsourcing reform. Only REPSE-registered entities are authorized to legally employ staff on behalf of foreign companies.

• Human Resources Mexico (HRM) operates with zero legal risk. It is fully REPSE-certified and compliant with all Mexican labor, tax, and social security laws. HRM ensures every employee is properly registered with IMSS, INFONAVIT, and SAT, eliminating any exposure for the client.
  
  

• Pebl (Velocity Global) carries a high compliance risk, as it lacks an active legal employer entity in Mexico. It uses indirect structures and partner intermediaries to manage workers, which violates Mexican outsourcing laws and leaves client companies legally responsible.
  
  

Only HRM guarantees full compliance, transparency, and protection under Mexico’s labor and tax regulations.

Comparison Summary

Below is a clear comparison of Human Resources Mexico (HRM) and Pebl (Velocity Global) across key compliance and operational criteria that matter most for legal employment in Mexico:

For any company seeking real, compliant, and human-centered employment in Mexico, HRM stands as the only fully authorized Employer of Record with local expertise, transparency, and proven credibility.

Get a custom proposal today and hire legally with HRM.

FAQs

Is Pebl legally registered to employ workers in Mexico?

No. Pebl (Velocity Global) is not REPSE-registered and has no active legal entity authorized to employ workers in Mexico. It relies on undisclosed fiscal partners or third parties to operate locally, which does not meet the requirements of Mexico’s 2021 outsourcing reform and creates compliance risks.

Can Pebl issue valid CFDI payroll receipts?

No. Pebl cannot issue official CFDI payroll receipts because it lacks a certified Mexican entity. Its payroll processes are managed through intermediaries, meaning employees are not directly registered with Mexican authorities such as IMSS or SAT. This structure makes payroll records non-compliant under Mexican tax law.

How does HRM manage severance differently from Pebl?

HRM handles severance directly through its Mexican legal entity, calculating payouts according to the Federal Labor Law and filing them properly with labor authorities. The client reimburses the payout, but HRM ensures legal compliance. Pebl, on the other hand, pre-charges severance monthly and does not manage the process locally.

Why is HRM safer for hiring and HR operations in Mexico?

HRM is fully REPSE-registered, operates a physical office in Mexico, and employs a bilingual HR and legal team with 16+ years of experience. Every employee is registered with IMSS and issued CFDI pay slips, ensuring total compliance. Pebl’s remote, partner-based model lacks these protections and carries significant legal risk.