In Mexico, the Federal Labor Law (FLL) does not mandate a specific notice period for employers to provide to employees upon termination. The termination process, however, varies depending on the justification for dismissal.

Justified Termination

If an employer terminates an employee with a justified cause as outlined in Article 47 of the FLL, they are not obligated to provide a notice period. The requirements they must fulfill include:

• Informing the employee of the termination reason(s) within 30 days of the incident triggering the dismissal.
• Presenting evidence supporting the cause for termination if the employee contests the dismissal.

Unjustified Termination

In cases where an employer terminates an employee without a justified cause, the legal implications are more significant. In these scenarios, a notice period becomes irrelevant. However, employers are legally required to provide severance pay in cases of unjustified termination. Employees terminated without cause have the right to challenge the dismissal through the Conciliation and Arbitration Labor Board. They may seek reinstatement, back wages, or a more substantial severance package.

In Mexico, the Federal Labor Law (FLL) stipulates that employees are entitled to severance pay under certain circumstances of employment termination. The specific entitlements are dependent on the justification for termination.

Justified Termination

In cases of justified termination, as outlined in Article 47 of the FLL, employees may still be entitled to certain severance payments:

• Earned wages: All accrued wages and benefits up to the termination date must be paid by the employer. This includes earned vacation time, bonuses, and any outstanding commissions.
• Seniority premium: Employees are entitled to a seniority premium of 12 days' salary for each year of service. This is capped at twice the minimum daily wage in the region where they worked.

It's important to note that the employer must provide justification and evidence for the dismissal to avoid additional severance obligations.

Unjustified Termination

If an employee is terminated without a justified cause, the employer is obligated to provide a more substantial severance package:

• Three months' salary: A minimum of three months' salary must be paid as a severance lump sum by the employer. This is calculated based on the employee's daily salary.
• Increased daily severance: In addition to the three months' salary, employees are entitled to 20 days of salary for each year of service. This amount is also calculated based on the daily wage.
• Constitutional Indemnification: Unjustified terminations also trigger the obligation to pay 90 days' salary as Constitutional Indemnification.

It's important to note that these are the minimum requirements. In some cases, collective bargaining agreements or individual employment contracts might stipulate higher severance payments.

Terminating an employee in Mexico involves following specific legal guidelines outlined in the Federal Labor Law (FLL) to ensure a compliant and smooth process.

Determine the Justification for Termination

The initial step involves establishing a clear justification for termination. The FLL outlines various reasons for justified dismissal in Article 47, including serious misconduct, negligence, or absences without proper justification.

Notification and Evidence (For Cause)

If termination is with cause:

• Employee Notification: The employer must notify the employee of the termination in person whenever possible, within 30 days of the incident. If in-person notification isn't feasible, certified mail or communication through the Labor Board (Junta de Conciliación y Arbitraje) are alternatives.
• Evidence Presentation: The employer has the responsibility to present documented evidence that supports the reason for dismissal if the employee contests the termination.

Negotiation and Settlement (Optional)

Employers and employees can explore the possibility of a mutually agreed termination. This might involve negotiating a severance package in exchange for the employee's waiving their right to challenge the dismissal.

Notice to Labor Board (Unless Mutually Agreed)

If termination is not a result of a mutual agreement, the employer must file a notice of termination with the Junta de Conciliación y Arbitraje (Labor Board). The Board itself doesn't judge the termination; it simply serves as a notification channel for the employee.

Employee's Right to Challenge: It's important to remember that employees terminated without cause have the right to challenge the dismissal through the Labor Board. They may seek reinstatement, back wages, or a more substantial severance package.