Mexican labor law is highly protective of employees and governed by the Ley Federal del Trabajo. Employment relationships are presumed to exist when services are rendered personally and subordinately, regardless of contract wording. Mandatory benefits include minimum wage, profit sharing (PTU), paid vacations, Christmas bonus (aguinaldo), and severance protections. Employers must also register employees with the Instituto Mexicano del Seguro Social (IMSS) for healthcare and pensions. Improper termination, misclassification, or informal hiring can lead to substantial liabilities, including back pay and reinstatement orders.