Business and management model · Human resource management
Hiring and Labor Relations
Ximena has just received her first job offer from a company in Querétaro: "$\$15{,}000$ a month." Before signing, she wonders which type of contract is best for her, how much money will really reach her bank account, and what rights she has even if the offer doesn't mention them. On this page we answer those questions from the point of view of the Federal Labor Law (LFT).
Types of Contracts and Work Schedules
In addition to those two general cases, the LFT provides for two ways of starting a job:
Trial period: up to 30 days, and up to 180 days in management positions or positions that require technical knowledge. It lets the company check the person's abilities.
Initial training: up to 3 months, and up to 6 in management positions. The person learns the tasks of the job.
Both must be in writing and cannot be repeated with the same person for the same position.
The golden rule is that the LFT presumes the relationship is for an indefinite term. A fixed-term contract is valid only if the nature of the work requires it. If the reason disappears, the contract ends. If the work itself continues to exist, the contract is extended for as long as it does.
Think of a store in Monterrey that hires staff for only six weeks for the Christmas season, or an agricultural warehouse in Sinaloa that needs workers during the harvest. In both cases the reason is temporary and repeats every year. They fit seasonal contracts (fixed term), with the right to benefits proportional to the time worked. The limit is that the position must truly depend on that season.
Practice★☆☆Not started
Explain the difference between a permanent contract and a fixed-term contract, and reason which type fits best in each case: covering a four-month leave of absence and…
Explain the difference between a permanent contract and a fixed-term contract, and reason which type fits best in each case: covering a four-month leave of absence and hiring a technician whom the company wants to keep for years.
A shop needs to reinforce its workforce only during the Christmas campaign (six weeks) and an agricultural warehouse during harvesting. Reason what type of contract fits…
A shop needs to reinforce its workforce only during the Christmas campaign (six weeks) and an agricultural warehouse during harvesting. Reason what type of contract fits in each case, what limits temporary hiring has, and what risks abusing it poses for both the employee and the company.
On a payroll statement, two groups of items are distinguished:
Earnings (what you earn): base salary, overtime, bonuses and commissions, supplements such as night-shift pay, the aguinaldo (year-end bonus; at least 15 days of salary a year, paid before December 20), vacation and vacation premium (at least 25% of the vacation pay), and profit sharing (PTU).
Deductions (what is withheld): the ISR (income tax) withholding, the worker's share of the IMSS (social security) contributions, and, if applicable, the deduction for an Infonavit (housing) loan.
Practice★☆☆Not started
On a payslip, earnings (what is earned) and deductions (what is deducted) are distinguished. Classify these items: basic salary, Social Security contribution,…
On a payslip, earnings (what is earned) and deductions (what is deducted) are distinguished. Classify these items: basic salary, Social Security contribution, night-shift allowance, income tax retention (IRPF), and pro-rata bonus payment.
The figure shows the structure of a payslip: deductions are subtracted from gross salary to give net salary. Calculate the net salary in the example and explain what the…
The figure shows the structure of a payslip: deductions are subtracted from gross salary to give net salary. Calculate the net salary in the example and explain what the two main deductions (income tax / IRPF and Social Security contributions) are used for.
A worker has a monthly gross salary of $\$36\,000$ and total deductions of $12\ \%…
A worker has a monthly gross salary of $\$36\,000$ and total deductions of $12\ \%$. a) Calculate the amount of the deductions and the net salary. b) Explain the difference between gross salary and net salary and why, when comparing job offers, it is necessary to look at both.
When the workforce and the company cannot agree (for example, on a raise), the normal path is negotiation. Before any labor lawsuit there is a mandatory stage of conciliation with a neutral third party (the Conciliation Center). The strike is a right, but one with legal requirements (a formal notice, a lawful objective), and it is a last resort, because it halts production and the workers stop being paid while it lasts.
Subcontracting and Outsourcing
Advantages
Disadvantages
Costs
Variable cost, no payroll or benefits of its own, and the outside company already has the expertise
You have to pay the provider company's margin, and contracts get more expensive
Control
The company focuses on its main activity
Less direct control over quality and staff turnover
Workers
They can have good conditions at a specialized company
Risk of less seniority, fewer benefits, and a weaker tie to the company
Image and risk
You avoid managing an additional payroll
If the provider fails to comply, the contracting company is jointly liable, and its reputation suffers
Practice★★★Not started
The management of a private clinic with 80 beds is considering outsourcing its cleaning and disinfection services, which are currently carried out by an in-house team of…
The management of a private clinic with 80 beds is considering outsourcing its cleaning and disinfection services, which are currently carried out by an in-house team of 10 workers on permanent contracts. The Chief Financial Officer argues that outsourcing will reduce fixed costs and shift all employment risk to the contractor. a) Refute the CFO's arguments by justifying what hidden costs and what quality or operational risks the clinic assumes when subcontracting this key activity. b) Under the current legal and labor framework, analyse whether the contractor can set lower wages than those of the clinic or how the application of sectoral collective agreements affects the expected savings. c) As Head of Human Resources, justify whether you would recommend outsourcing or keeping the service with in-house staff using the core business (core competencies) criterion.
If a job posting asks for "ninjas with a passion for gamer culture," asks for a photo, age, or marital status, or evaluates whether someone will "fit the informal atmosphere," people are being screened out by traits unrelated to the job. The solution is to move to measurable skills, structured interviews, and the same criteria for everyone.
Practice★★☆Not started
Explain what an equality plan in a company is and describe three measures it usually contains (equal pay, anti-harassment protocol, work-life balance measures),…
Explain what an equality plan in a company is and describe three measures it usually contains (equal pay, anti-harassment protocol, work-life balance measures), indicating what problem each one addresses.
A technology consulting firm shows the following salary data in its social balance sheet: the overall average salary for men is $\$2,500$ and for women it is $\$2,000$.…
A technology consulting firm shows the following salary data in its social balance sheet: the overall average salary for men is $\$2,500$ and for women it is $\$2,000$. However, management claims: "There is no wage discrimination in our company: in each of the professional categories (junior, senior, and project manager), men and women receive exactly the same base pay established by the collective bargaining agreement". a) Calculate the company's gender pay gap based on the average male salary and interpret the result. b) Explain how it is technically possible for management's claim to be true while this overall gender pay gap exists at the same time; relate your explanation to the concepts of vertical segregation (glass ceiling) and horizontal segregation. c) Design two specific organizational and human resources measures that the company should implement to correct this situation structurally.
A software company whose workforce is $85\ \%$ men under 30 years of age needs to recruit five senior programmers. Its current selection process consists of: 1) A public…
A software company whose workforce is $85\ \%$ men under 30 years of age needs to recruit five senior programmers. Its current selection process consists of: 1) A public job posting on social media calling for "true code ninjas with full availability and a passion for gamer culture"; 2) CV screening requiring a photo, age, and marital status; 3) An unstructured personal interview where two founding partners assess whether the applicant "fits into the team's casual vibe". a) Diagnose what cognitive or discriminatory biases (gender, age, or affinity) are fostered by each of the three phases of the process. b) Fully redesign all three phases by proposing objective and technical instruments to assess professional competence exclusively, and explain how each change eliminates the identified biases.
Back to the beginning: Ximena should ask whether the contract is for an indefinite or a fixed term, and for what reason. With a gross salary of $\$15{,}000$ and deductions of $14\%$, she would receive $\$12{,}900$ net, in addition to benefits such as the aguinaldo, vacation, and IMSS enrollment.
Summary
Let's practice! 3 medium exercises in this section