Choosing the right Employer of Record (EOR) in Mexico has never been more critical — especially as many global EOR platforms operate like scams, hiding behind fiscal addresses, fake compliance claims, and undisclosed partner networks.

These companies market convenience but lack the REPSE registration, legal entity, or physical presence required to employ workers legally under Mexico’s outsourcing reform.

• Skuad is one such global platform. It offers international hiring through software but has no REPSE certification, no legal entity, and no in-country HR team in Mexico, relying instead on third-party intermediaries.
  
  

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

This article compares HRM and Skuad to show why choosing a real, local EOR in Mexico, is the only safe way to hire 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 and manage employees. Without it, providers cannot act as official employers or handle compliance responsibilities under Mexican law.

• Human Resources Mexico (HRM) is fully REPSE-registered and compliant, legally recognized as an Employer of Record in Mexico. HRM manages payroll, benefits, and compliance directly through its registered Mexican entity, ensuring complete legal protection for both clients and employees.
  
  

• Skuad is not publicly listed as REPSE-registered and operates through undisclosed third-party local partners to deliver services. This indirect model prevents it from functioning as a legitimate employer under Mexico’s labor law, increasing exposure to compliance and tax risks.
  
  

HRM’s verified REPSE certification ensures lawful operations, while Skuad’s partner-based structure lacks transparency and local accountability.

2. Local Presence

A true Employer of Record in Mexico requires a real local office and HR staff to manage employee relations and ensure compliance. Fiscal addresses or remote structures cannot fulfill these obligations.

• Human Resources Mexico (HRM) has a physical office in Mexico, supported by a bilingual HR and payroll team with over 16 years of in-country experience. Every client and employee receives direct, local support from professionals trained in Mexican labor law.
  
  

• Skuad has no physical presence or HR department in Mexico. All employee management is handled remotely through its global platform and external partners. This limits its ability to address local employee concerns, handle legal filings, or provide face-to-face support.
  
  

HRM’s in-country operations ensure real human interaction, accountability, and cultural understanding — essential elements Skuad’s remote model cannot provide.

3. Independent Contractor Services

Under Mexican labor law, a worker performing duties under a company’s control or supervision is considered an employee, not a contractor. Misclassifying these relationships can result in heavy penalties, back pay, and tax liabilities.

• Human Resources Mexico (HRM) does not engage in independent contractor hiring to avoid legal misclassification and maintain full compliance with the Federal Labor Law and IMSS regulations. Every hire is legally registered and protected.
  
  

• Skuad offers global contractor management services, enabling clients to pay individuals as freelancers. In Mexico, this creates a misclassification risk when contractors perform full-time, subordinated work, violating the subordination principle in labor law.
  
  

HRM guarantees fully compliant employment relationships, while Skuad’s contractor model exposes clients to labor and tax penalties.

4. IMSS and CFDI Compliance

To operate legally in Mexico, an EOR must register employees with IMSS (social security), contribute to INFONAVIT (housing fund), and issue CFDI payroll receipts approved by the SAT tax authority.

• Human Resources Mexico (HRM) registers every employee with IMSS, manages all social security contributions, and issues official CFDI payroll receipts through its certified Mexican entity. This guarantees lawful employment and full tax transparency.
  
  

• Skuad processes payroll through external systems or partner entities, without issuing CFDIs under its own name. This structure creates gaps in compliance with IMSS, INFONAVIT, and SAT obligations, leaving clients exposed to non-compliance risks.
  
  

HRM’s payroll process meets every statutory requirement under Mexican law, while Skuad’s outsourced model lacks legal accountability.

5. Support Model

Human-led HR support is critical for employee satisfaction and compliance in Mexico, where personal communication and cultural context matter.

• Human Resources Mexico (HRM) provides 100% human-led bilingual HR and payroll support. Both clients and employees have direct access to local specialists who manage payroll, compliance, and employee needs with full transparency and care.
  
  

• Skuad operates primarily as an automated digital platform, with limited HR involvement and no in-country HR team. This software-first model reduces personal interaction and may delay responses to compliance or employee issues.
  
  

HRM’s local, human-first approach ensures real accountability and ongoing support — something Skuad’s automated model cannot replicate.

6. Pricing Model

Pricing transparency determines how predictable your employment costs are in Mexico. Some global platforms promote flat monthly rates but later add multiple service fees, making real costs unclear.

• Human Resources Mexico (HRM) applies a single transparent percentage-based fee on the employee’s gross taxable salary. There are no setup, FX, onboarding, or offboarding fees, and the cost includes full payroll management, compliance, and HR support. Clients always know their total cost upfront.
  
  

• Skuad advertises a flat monthly rate per employee, but additional charges apply for onboarding, compliance services, benefits management, and other HR-related processes. These hidden costs make its pricing 10–15% higher than HRM’s simple, all-inclusive structure.
  
  

HRM’s transparent pricing ensures full visibility and no surprise charges, while Skuad’s layered cost model hides multiple add-ons that inflate the real cost of employment.

7. Severance and Legal Handling

Employee termination in Mexico must follow the Federal Labor Law, which mandates a 90-day severance payout and accrued benefits for employees dismissed without cause. Proper handling requires a local legal entity and in-country HR oversight.

• Human Resources Mexico (HRM) manages the entire severance process directly in compliance with Mexican law. HRM calculates payouts, prepares legal documentation, and coordinates filings with labor authorities. The client reimburses the severance, ensuring full legal compliance and transparency.
  
  

• Skuad lacks a local legal team or registered entity to manage severance within Mexico. Terminations are handled remotely through partner networks or global systems, which do not meet Mexico’s legal standards for labor disputes or employee protection.
  
  

HRM ensures lawful, transparent severance management, while Skuad’s remote setup exposes clients to compliance gaps.

8. Client Fit

Choosing the right EOR depends on whether your company values local legal compliance or global reach.

• Human Resources Mexico (HRM) is best for SMEs and enterprises seeking a compliant, in-country EOR with bilingual HR, payroll, and legal support. HRM’s human-led approach ensures accountability, legal security, and cultural understanding — ideal for companies committed to long-term operations in Mexico.
  
  

• Skuad is designed for global startups hiring across multiple countries through a single platform. However, its lack of legal registration, local staff, and direct oversight makes it unsuitable for companies prioritizing compliance in Mexico.
  
  

For any company hiring employees exclusively in Mexico, HRM is the safer and more sustainable choice.

9. Legal and Compliance Risks

In Mexico, compliance requires a REPSE-registered entity, local HR staff, and direct control over payroll, benefits, and tax filings.

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

• Skuad faces high compliance risk due to its lack of a Mexican employer entity and reliance on third-party partners to manage local compliance. This indirect model fails to meet the legal definition of an Employer of Record under Mexico’s outsourcing reform.
  
  

HRM guarantees full compliance and peace of mind for companies operating in Mexico — something Skuad’s global platform cannot provide.

Comparison Summary – HRM vs Skuad in Mexico

Here’s a direct comparison between Human Resources Mexico (HRM) and Skuad, highlighting how each provider performs across the key factors that matter most for legal, compliant employment in Mexico:

Human Resources Mexico (HRM) remains the only fully REPSE-registered, locally managed, and human-centered EOR, ensuring total compliance, transparency, and real in-country expertise.

Get a custom proposal today and hire confidently with HRM.

FAQs

Is Skuad REPSE-registered in Mexico?

No. Skuad is not REPSE-registered and does not have a legal entity in Mexico. It operates through third-party partners, which means it cannot legally act as an Employer of Record under Mexico’s 2021 outsourcing reform. Only REPSE-certified companies like HRM can directly employ and manage workers in Mexico.

Can Skuad legally issue CFDI payroll receipts?

No. Because Skuad lacks a registered Mexican entity, it cannot issue CFDI payroll receipts or register employees with IMSS. Payroll is processed externally through partner networks, making it non-compliant with Mexican labor and tax regulations.

What makes HRM’s support and compliance stronger in Mexico?

Human Resources Mexico (HRM) operates fully within Mexico, combining REPSE certification, local legal oversight, and bilingual HR support. HRM manages payroll, CFDIs, IMSS registration, benefits, and severance directly — ensuring every process follows Mexican labor, tax, and social security laws with full transparency.

Which provider offers safer, long-term employment for companies in Mexico?

HRM is the safer and more compliant choice for companies hiring in Mexico. With over 16 years of local experience, HRM provides real human HR support, transparent pricing, and legal accountability. Skuad, on the other hand, relies on partner networks and lacks the local presence needed for lawful, long-term employment.