Comparative Guides
Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.
Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.
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Results: 4 Answers
Labour and Employment
5.
Dismissals and terminations
5.1
Must a valid reason be given to lawfully terminate an employment contract?
 
Mexico
Yes. In Mexico, termination at will by the employer is not possible. Both a valid (legal) reason for termination and a formal termination notice procedure for the employee are legal requirements.

For more information about this answer please contact: Luis E. Díaz Mirón S. from Díaz Mirón Y Asociados, S.C.
5.2
Is a minimum notice period required?
 
Mexico
There is no minimum termination notice period; termination can be effective immediately, but the employer only has one month to terminate the employment relationship from the point of learning of the cause for termination.

For more information about this answer please contact: Luis E. Díaz Mirón S. from Díaz Mirón Y Asociados, S.C.
5.3
What rights do employees have when arguing unfair dismissal?
 
Mexico
Employees can file for reinstatement or for severance pay due to wrongful termination.

For more information about this answer please contact: Luis E. Díaz Mirón S. from Díaz Mirón Y Asociados, S.C.
5.4
What rights, if any, are there to statutory severance pay?
 
Mexico
Severance pay for wrongful termination amounts to three months’ wages, plus seniority premium (see question 4.5). If the employee seeks reinstatement, in specific situations the employer can opt not to reinstate and pay an additional sum of 20 days’ wages per year of seniority.

If an employee sues, there is an additional contingency due to the accumulation of accrued wages during the trial for up to one year. After one year, wages no longer accrue; instead, a legal formula applies to calculate a severance pay that is equivalent to 25% of the value of the daily wage.

For more information about this answer please contact: Luis E. Díaz Mirón S. from Díaz Mirón Y Asociados, S.C.