Use the Lexology Navigator tool to compare the answers in this article with those from other jurisdictions. 

Termination

Notice

Are employers required to give notice of termination?

Employment at will does not exist in Mexico, therefore employers may not terminate employment relationships without just cause. There is a list of causes and a set procedure to terminate employees at any time without incurring liability, which includes:

  • vandalism;
  • sexual harassment;
  • false statements about work qualifications;
  • revealing company secrets;
  • refusing to comply with safety procedures; and
  • four unexcused absences in a 30-day period.

If an employer has just cause to terminate an employment relationship, there is an obligation to give notice to the employee and the board and to prove the cause for termination. If there is no substantial motive or evidence, labour relationships can be terminated via a voluntary agreement where the employee is entitled to statutory benefits and possibly some form of compensation (each case must be treated individually through human resources).

If in any case there is no termination with just cause or a negotiated exit for an employee, the employee is entitled to claim for wrongful termination and sue either for substantial statutory benefits or reinstatement to the job.

Employees must claim within 60 days following alleged wrongful termination. 

Redundancies

What are the rules that govern redundancy procedures?

There are no redundancy rights that govern labour relations in Mexico.

Are there particular rules for collective redundancies/mass layoffs?

There are no redundancy rights that govern labour relations in Mexico.

Protections

What protections do employees have on dismissal?

The Federal Labour Law is employee protective. Its provisions are generally much more specific than protections provided to workers under US or UK law.

All employee relationships in Mexico are based on the premise that employees must be guaranteed permanency and longevity in the workplace. Thereafter, employers are restrained in terms of termination policies (no termination at will). Maximum statutory benefits that any employee may claim on dismissal include:

  • three-month salary severance pay;
  • 20 days of salary for every year;
  • seniority and statutory benefits, which include a Christmas bonus, vacation and vacation premium and worked days. 

Click here to view the full article.