Under Mexico’s law, employees are entitled to a share in the company’s profits, currently calculated on the basis of 10 percent of the company’s pre-tax income. However, new companies are exempted from this requirement during their first year of operation. In addition, the highest-ranking officer of a company is not entitled to this benefit.

Under Mexico's law, employees are entitled to a share in the company's profits, currently calculated on the basis of 10 percent of the company's pre-tax income. However, new companies are exempted from this requirement during their first year of operation. In addition, the highest-ranking officer of a company is not entitled to this benefit.

Given the protections afforded under Mexico’s employment laws, employers should carefully strategize any employee transfer to Mexico as an expatriate, to avoid unanticipated problems for the employer (or its parent company).