17.1 Million Workers in Mexico Don’t Have an Employment Contract

ByGerardo Hernández

This article by Gerardo Hernández originally appeared in the April 15, 2026 edition of El Economista.

Although it is a document that certifies the employment relationship and working conditions, 17.1 million employees in Mexico do not have an employment contract, according to the latest data from the National Survey of Occupation and Employment (ENOE). According to experts, the absence of such a contract, while not representing a waiver of rights, does pose risks for employers.

Katia Everardo, a consultant specializing in Labour Relations at the firm Abarca y Asociados, states that the absence of employment contracts is one of the most common breaches among employers.

“Employment contracts are often overlooked, perceived more as a formality than as compliance with regulations. But we are in a labour era where having an employment contract is a legal strategy for both the worker and the employer,” the specialist comments.

In February, the latest data available from the ENOE, 41.4% of all subordinate workers in the country did not have a written contract, an increase of 0.7 percentage points compared to the level observed at the end of 2025.

However, the absence of a written contract can generate greater risks for employers, explains Vanessa Díaz, director and founder of Laboral MX.

“This is an issue that benefits employers, because without an employment contract they can be subject to various controversies; for example, in a dispute with a worker there are no grounds to defend themselves in court, the lack of an employment contract is the employer’s responsibility,” she emphasizes.

Article 24 of the Federal Labour Law (LFT) establishes that working conditions must be recorded in writing . However, the legislation also stipulates that the absence of this document “does not deprive the worker of the rights derived from labour standards and services rendered, as the employer will be held responsible for the lack of this formality.”

In this regard, labour law specialists agree that the lack of an employment contract has more implications for employers than for workers, since employees can demand compliance with all the benefits and rights established by the Federal Labour Law, but employers have no way of proving in court whether the amounts or benefits are what the employee is actually claiming.

“Supposing that a worker claimed that he worked every day from 7 a.m. to 7 p.m., with a salary of 1,000 pesos per day and that the company supported him with a savings fund, and in that fund he already had 30,000 pesos saved, and perhaps as an employer you don’t even have the capacity to sustain this supralegal benefit, but if there is no contract, that work schedule, that salary and that benefit are generally taken as true because there is no key element to prove it,” Katia Everardo exemplifies.

Furthermore, Vanessa Díaz adds, as long as the worker proves the conditions, even if there is no contract, the employment relationship is established and the person has the right to the minimums established by the Federal Labour Law.

This month the debate surrounding the formality of the employment contract was ignited , following the proposal presented by Congressman Juan Ignacio Zavala (MC) to reinforce the employer’s obligation to provide a copy of the document to workers before the start of the provision of services.

According to data from the National Institute of Statistics and Geography (INEGI), in 2025 the proportion of employees without a written contract rose slightly, from 41.2% to 42.0%. Over the last decade, the percentage of employees lacking such a document has only decreased by 4.6 percentage points.

Clarity at work, one of the benefits of an employment contract

But the only risk of not having an employment contract isn’t just the difficulty of defending oneself in labour lawsuits. Experts also agree that without such a document, there is little clarity regarding both the duties and obligations of employees.

“Based on the category under which a worker is hired, we can also establish what that worker has to do as part of their duties and what happens if the worker does not fulfill those duties or what we need for the position; at some point the contract can be terminated , but only when it exists,” says Vanessa Díaz.

In that regard, Katia Everardo points out that employment contracts are a tool to provide certainty in the functions of the position; these documents detail all the activities that must be carried out, “as long as they are consistent with the work.”

All these benefits, the specialists point out, reflect the importance of both having the document and personalizing it ; that is, not copying generic formats, but adapting them to the industry, the position, business needs and the type of contract.

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