{"id":8552,"date":"2017-09-12T15:33:04","date_gmt":"2017-09-12T13:33:04","guid":{"rendered":"https:\/\/auren.com\/cl\/global-blog\/agreements-on-social-security-between-companies\/"},"modified":"2017-09-12T15:33:04","modified_gmt":"2017-09-12T13:33:04","slug":"agreements-on-social-security-between-companies","status":"publish","type":"global-blog","link":"https:\/\/auren.com\/cl\/en\/global-blog\/agreements-on-social-security-between-companies\/","title":{"rendered":"Agreements on social security between companies"},"content":{"rendered":"

COLLABORATION AGREEMENTS ON  SOCIAL SECURITY BETWEEN COMPANIES<\/strong><\/h1>\n

The great commercial exchange, product of a globalized economic policy, each day encourages an increasing number of companies to intend to expand their market by offering their products or services beyond their borders. Such commercial dynamics, which are taking giant steps forwards, affect the vast majority of companies marketing products and services in the country. Thanks to this, large-scale corporations and even certain modest companies have had the chance to expand their market abroad.<\/p>\n

This economic phenomenon has meant, among other aspects, that many of these companies support part of their operations with specialized people with in-depth knowledge of the operational functions of their company; at times, having people they trust in charge of the path taken by the investment or business in a different location is a determining factor for smooth operations. As a result, more and more people are joining in the commercial activities of their company on a foreign market. <\/p>\n

However, at times, we have asked ourselves… What happens with the benefits of those employees who leave their country of origin and work abroad?<\/strong><\/p>\n

In Mexico, a person joining a field of work, in any production sector, has rights and obligations mainly protected by the Federal Employment Act, the Social Security Act, the National Fund for Workers’ Housing (INFONAVIT) Act and the Income Tax Act. The same happens with a foreign worker with permission to stay in the country in order to work in national territory. <\/p>\n

The vast majority of the benefits to which the workers are entitled are settled, if not during their working relationship, then on the conclusion of the employment relationship, through the payment of their end of contract settlement. The same happens with any taxes to be covered. <\/p>\n

However, this is not the case with Social Security benefits such as contributions made to Life and Invalidity insurance policies, Retirement, Lay-Off and Old Age, and contributions aimed at obtaining home loans. Their very nature prevents them from being settled or paid before the events for which they were designed have occurred. <\/p>\n

If a foreign employee who comes to work in Mexico does not conclude their employment life here and\/or does not meet certain requisites in order to receive any of the benefits afforded by Social Security laws, they face a procedure which is not only slow but cumbersome when trying to obtain or recover the funds used for these concepts during their working life in Mexico. <\/p>\n

At present, Mexico has 2 bilateral collaboration agreements on matters of social security.<\/p>\n

Once of them, which was drafted in April 1995 and came into force in 1996, is the SOCIAL SECURITY AGREEMENT BETWEEN MEXICO AND CANADA<\/strong> which attributes its origin to 2 main functions: <\/p>\n