Hiring legally in Mexico requires more than a global hiring platform — it demands a locally registered, REPSE-certified Employer of Record (EOR).

Many global EORs promote compliance but lack the legal presence, registration, or on-ground HR teams required under Mexico’s 2021 outsourcing reform. Working with such providers can lead to severe fines, invalid contracts, and employee misclassification.

• Remote is one of these global platforms. It has no legal entity or REPSE registration in Mexico and operates entirely through third-party intermediaries, without local HR oversight.
  
  

• In contrast, Human Resources Mexico (HRM) is a fully REPSE-certified, in-country EOR with over 16 years of legal operation.
  
  

This comparison explains why HRM is the safest, most compliant choice for companies hiring in Mexico.

1. REPSE Registration

Under Mexico’s 2021 outsourcing reform, every Employer of Record (EOR) must hold valid REPSE registration to legally hire and manage employees. REPSE certification ensures transparency and compliance with labor and tax laws.

• Human Resources Mexico (HRM) is fully REPSE-registered and compliant, legally authorized to operate as an Employer of Record in Mexico. It manages all HR, payroll, and tax obligations directly through its Mexican entity under government supervision.
  
  

• Remote does not have a legal entity or REPSE registration in Mexico. It operates entirely through third-party intermediaries that handle local employment on its behalf. All activities are coordinated remotely through its global platform, leaving clients without true local accountability.
  
  

HRM combines legal authorization with real operational presence, while Remote’s platform-based model limits its ability to provide hands-on HR or compliance oversight in Mexico.

2. Local Presence

A true Employer of Record must have an active physical presence and a local HR team to manage employee relations, compliance, and payroll directly.

• Human Resources Mexico (HRM) maintains a physical office in Mexico with a full bilingual HR and payroll team. With over 16 years of continuous local operation, HRM offers real, in-person support and direct accountability to both clients and employees.
  
  

• Remote holds a fiscal entity in Mexico, but there is no public office or active in-country HR team. All operations are handled remotely through its global platform, limiting its ability to address local employee needs or handle compliance on the ground.
  
  

HRM’s on-site HR and payroll team ensures immediate support and lawful management, while Remote’s remote-only setup reduces local control and accountability.

3. Independent Contractor Services

Mexican law prohibits treating full-time workers as independent contractors if they perform duties under supervision or direction — known as the subordination rule. Violations can result in severe fines and back payments.

• Human Resources Mexico (HRM) does not manage or hire independent contractors, ensuring full compliance with the Mexican Constitution and Federal Labor Law. Every employee is legally registered and protected under IMSS and SAT regulations.
  
  

• Remote provides global contractor management services, allowing companies to hire individuals as freelancers. In Mexico, this creates a high risk of misclassification if contractors perform full-time, controlled work — a violation of local labor law.
  
  

HRM eliminates misclassification risks by operating within Mexico’s legal employment framework, while Remote’s contractor model poses compliance concerns.

4. IMSS and CFDI Compliance

Payroll in Mexico must follow strict legal requirements, including registering employees with IMSS and issuing CFDI payroll receipts approved by the tax authority (SAT).

• Human Resources Mexico (HRM) fully manages payroll in compliance with Mexican law. All employees are registered with IMSS, contributions are made to INFONAVIT, and official CFDI pay slips are issued directly from HRM’s Mexican entity.
  
  

• Remote handles payroll and compliance via its global software platform. However, CFDIs are not issued directly through an in-country HR team, and filings are not locally managed. This limits transparency and may expose clients to audit or compliance risks.
  
  

HRM’s payroll process is handled entirely in Mexico, ensuring full tax and labor compliance — something Remote’s global platform cannot guarantee.

5. Support Model

Employee satisfaction and compliance depend heavily on accessible, human HR support that understands local laws and workplace culture.

• Human Resources Mexico (HRM) provides 100% human-led HR support, handled by bilingual professionals based in Mexico. Employees and clients have direct access to HR specialists for payroll, benefits, and compliance issues.
  
  

• Remote relies primarily on its SaaS platform and global ticketing system, where HR queries are handled remotely. This structure limits personalized communication and lacks the local cultural awareness needed to manage HR matters effectively in Mexico.
  
  

HRM’s personal, local service ensures responsive and compliant HR management — a level of support Remote’s digital system cannot match.

6. Pricing Model

Pricing reveals whether an EOR operates as a genuine local employer or as a global software intermediary.

• Human Resources Mexico (HRM) applies a single transparent markup percentage on each employee’s gross taxable salary. There are no onboarding, FX, or termination fees, and all HR, payroll, and compliance services are included. Clients always know their total cost upfront.
  
  

• Remote advertises a flat monthly fee per employee, but additional costs often apply for benefits management, FX conversions, legal compliance, and offboarding. These extra layers can make the actual price 10–15% higher than HRM’s simple and fully inclusive model.
  
  

HRM’s single markup fee provides cost predictability and full compliance, while Remote’s modular pricing adds hidden expenses and less local accountability.

7. Severance and Legal Handling

Employee termination in Mexico must comply with the Federal Labor Law, which requires a 90-day severance payout plus accrued benefits for employees dismissed without cause. Handling this locally ensures transparency and compliance with Mexican authorities.

• Human Resources Mexico (HRM) manages all severance and termination processes in full compliance with Mexican law. HRM conducts every step locally — calculating payouts, preparing legal documentation, and coordinating with labor authorities. Clients reimburse the severance, ensuring full transparency and compliance.
  
  

• Remote manages severance through its global system without a physical legal presence in Mexico. Since its operations are handled remotely, it lacks in-country legal oversight and cannot execute termination procedures directly under Mexican labor standards.
  
  

HRM ensures lawful, locally managed severance, while Remote’s digital model limits accountability and compliance reliability.

8. Client Fit

Choosing the right EOR in Mexico depends on whether your company values local compliance or global flexibility.

• Human Resources Mexico (HRM) is ideal for SMEs and enterprises expanding into Mexico that need in-country HR expertise, bilingual support, and full legal compliance in Mexico. It’s best suited for companies seeking long-term, lawful employment management within Mexico’s strict labor framework.
  
  

• Remote caters to global startups and tech companies hiring distributed teams across multiple countries through one digital platform. However, its lack of local HR oversight makes it less effective for companies focused specifically on Mexican operations.
  
  

For businesses prioritizing compliance, legal security, and cultural understanding in Mexico, HRM remains the superior choice.

9. Legal and Compliance Risks

Operating legally in Mexico requires REPSE registration, local HR management, and direct control of payroll and legal processes.

• Human Resources Mexico (HRM) carries zero compliance risk. It is fully REPSE-registered and compliant with all IMSS, CFDI, INFONAVIT, and NOM regulations. Every employee is formally registered, and all filings are managed directly through HRM’s Mexican entity.
  
  

• Remote faces moderate compliance risk. While it has a registered entity in Mexico, it operates without an active local HR department or on-ground legal execution. This limits its ability to meet all compliance requirements under Mexican labor law.
  
  

HRM’s direct presence and REPSE certification ensure total legal protection, while Remote’s remote management model poses structural compliance limitations.

Comparison Summary

Here’s a side-by-side comparison showing how Human Resources Mexico (HRM) and Remote differ in legal compliance, operational presence, and transparency when hiring in Mexico:

Human Resources Mexico (HRM) combines full legal certification, a local HR team, and transparent pricing — ensuring total compliance, accountability, and in-country expertise.

Get a custom proposal today and hire confidently with HRM.

FAQs

Is Remote REPSE-registered in Mexico?

Remote has a legal entity in Mexico but does not operate under full REPSE authorization. Its compliance processes are managed globally through remote systems rather than a certified local operation. Only Human Resources Mexico (HRM) holds verified REPSE registration and functions as a legally recognized Employer of Record under Mexican outsourcing laws.

Does Remote manage IMSS and CFDI payroll directly?

No. Remote processes payroll through its global platform and partner systems, meaning CFDI payroll receipts are not issued locally and IMSS registrations are not handled directly in-country. In contrast, HRM manages payroll, taxes, and social security contributions entirely within Mexico, guaranteeing legal and fiscal compliance.

How does HRM’s local team improve compliance in Mexico?

Human Resources Mexico (HRM) employs an experienced bilingual HR and payroll team working from its physical office in Mexico. This local structure allows HRM to directly manage REPSE, IMSS, CFDI, and INFONAVIT compliance, ensuring every employment process follows national labor laws. Local oversight means faster resolutions, better communication, and complete transparency.

Which provider is better for long-term employment stability in Mexico?

HRM is the safer, long-term choice for any company hiring in Mexico. With over 16 years of local experience, full REPSE certification, and in-country HR professionals, HRM ensures compliant, sustainable employment operations. Remote, while globally recognized, lacks local HR infrastructure — creating risks in daily management and long-term compliance stability.