By resolution issued on September 18, 2015, in the direct Amparo proceeding number 116/2015, the Sixteenth Collegiate Court on Labor Matters of the First Circuit ordered the non-application of Article 48 of the Federal Labor Law (amended on November 30, 2012), for considering unconstitutional the limit of twelve months of back wages that such Article provides. In this case, the inapplicability of that Article was ordered, which consequence will be that in said proceeding the back wages continue to generate without limit, from the date of dismissal until the date on which the employer pays the severance award.

On the other side, the Thirteenth Collegiate Court on Labor Matters of the First Circuit on the resolution of the direct Amparo proceeding number 1548/2014, declared that the limit of one year of back wages does not contradict the provisions of Article 123 of the Mexican Constitution and, therefore, the application of the amended Article 48 of the Federal Labor Law is constitutional.

It will correspond to the Mexican Supreme Court of Justice to resolve the contradiction, and determine which will be the criterion that shall prevail. As a matter of wide interest within the business sector, we will let you know how that contradiction is resolved.