Corrective and Disciplinary Action in Mexico Explained

What Are Corrective and Disciplinary Actions in Mexico

Corrective and disciplinary actions in Mexico refer to the measures an employer may take to address employee conduct or performance issues. These actions are not discretionary management tools.

They are regulated employment mechanisms that must follow strict legal principles designed to protect job stability and due process.

• Definition of corrective vs disciplinary action
  Corrective action focuses on guiding the employee to improve behavior or performance through warnings, training, or documented feedback. Disciplinary action involves formal sanctions such as written reprimands or termination when legally justified.
  
  

• Difference between performance correction and punishment
  Correction aims to fix behavior and preserve the employment relationship. Punishment without due process is prohibited. Employers must demonstrate proportionality, documentation, and a clear link between conduct and consequence.
  
  

• Why disciplinary action is heavily regulated under Mexican labor law
  Mexican labor law prioritizes job protection and limits employer discretion. Any disciplinary action must be justified, documented, and consistent with internal policies and the law. Arbitrary sanctions are invalid.
  
  

• Why Mexico is not an at-will employment system
  Employment cannot be terminated or disciplined freely. Employers must prove legal cause and follow formal procedures. Without cause, actions are treated as violations and expose the employer to reinstatement or severance liability.
  
  

In Mexico, corrective and disciplinary actions are legal processes, not managerial preferences. When handled incorrectly, they create labor exposure instead of resolving workplace issues.

Legal Framework Governing Discipline in Mexico

Disciplinary action in Mexico is governed primarily by the Federal Labor Law. The law strictly limits how and when employers may discipline employees and applies a protective approach that favors job stability and due process. Employers cannot rely on internal policy alone to justify disciplinary measures.

• Federal Labor Law (LFT) as the governing statute
  The Federal Labor Law establishes the exclusive legal framework for employee discipline. Any corrective or disciplinary action must be grounded in the LFT, not foreign HR practices or internal manuals.
  
  

• Employee obligations under Article 134
  Article 134 lists core employee duties such as following lawful instructions, performing work with care, and observing workplace rules. Disciplinary action must link directly to a breach of these specific obligations.
  
  

• Employer obligations and limits under the LFT
  Employers must act proportionately, document misconduct, and respect due process. The LFT prohibits fines, arbitrary penalties, or disciplinary measures not expressly allowed by law.
  
  

• Principle of employee protection and strict interpretation
  Mexican labor law is interpreted in favor of the employee. Any ambiguity about discipline, evidence, or procedure is resolved against the employer.
  
  

In Mexico, discipline is lawful only when it fits squarely within the Labor Law. Actions outside this framework are treated as violations, not management decisions.

Employer Authority to Discipline Employees

In Mexico, an employer’s authority to discipline employees exists, but it is narrowly defined and tightly controlled by labor law. Discipline is permitted only in response to specific, work-related misconduct and must follow principles of legality, proportionality, and due process.

• When an employer may discipline an employee
  Discipline is allowed only when an employee breaches a legal obligation, internal work rule, or contractual duty recognized by the Federal Labor Law. Personal disagreements or subjective dissatisfaction are not valid grounds.
  
  

• Requirement that misconduct relate to work duties
  The conduct must be directly connected to the employee’s job functions or workplace behavior. Actions outside the scope of employment generally cannot justify disciplinary measures.
  
  

• Limits on arbitrary or discretionary discipline
  Employers may not discipline employees based on discretion, preference, or informal standards. Any sanction must be supported by evidence and aligned with written policies and legal provisions.
  
  

• Importance of proportionality
  The disciplinary measure must match the seriousness of the misconduct. Excessive punishment for minor infractions is invalid and exposes the employer to legal challenges.
  
  

In Mexico, employer authority to discipline is conditional, not absolute. Discipline that exceeds legal limits often creates greater liability than the misconduct itself.

Internal Work Regulations (Reglamento Interior de Trabajo)

The Internal Work Regulation is the foundation for lawful discipline in Mexico. It defines acceptable conduct, procedures, and sanctions within the workplace. Without this document, an employer’s ability to enforce disciplinary action is severely limited, regardless of what an employment contract or handbook states.

• What the Internal Work Regulation is
  It is a formal set of workplace rules covering conduct, schedules, safety, disciplinary measures, and procedures. It translates legal obligations into enforceable internal standards.
  
  

• Why it is mandatory for disciplinary enforcement
  Disciplinary actions must be based on rules the employee knew in advance. The Internal Work Regulation provides this legal notice. Sanctions not grounded in it are often deemed arbitrary.
  
  

• Requirement to register it with labor authorities
  The regulation must be registered with the competent labor authority and made available to employees. Unregistered or unpublished rules lack enforceability.
  
  

• Consequences of missing or unregistered regulations
  Without a valid regulation, employers struggle to justify warnings, suspensions, or termination for misconduct. Courts frequently rule in favor of employees when this document is absent.
  
  

In Mexico, discipline depends on structure. A properly registered Internal Work Regulation is what turns workplace rules into enforceable legal standards.

Types of Corrective and Disciplinary Actions Allowed

Mexican labor law allows only a limited set of corrective and disciplinary measures. Employers cannot invent penalties or apply sanctions that are not expressly permitted by law or by a properly registered Internal Work Regulation. Each action must be justified, documented, and proportionate to the misconduct.

• Verbal warnings
  Verbal warnings are used for minor infractions and serve as an initial corrective step. While informal, they should still be documented internally to establish a record of prior corrective efforts.
  
  

• Written warnings
  Written warnings formalize the issue and clearly describe the misconduct, expectations for correction, and potential consequences of repetition. They must be based on documented facts and aligned with internal regulations.
  
  

• Corrective action plans
  These plans focus on improvement rather than punishment. They outline specific actions, timelines, and follow-up measures to address performance or behavior issues, reinforcing the corrective nature of discipline.
  
  

• Suspension without pay (where allowed by regulations)
  Unpaid suspension is permitted only if explicitly authorized in the Internal Work Regulation. The duration must be limited and proportionate, and may not exceed eight days, as Mexican labor law establishes a strict maximum period for disciplinary suspension.
  
  

• Disciplinary dismissal for serious misconduct
  Termination without severance is allowed only for serious causes defined by law, such as dishonesty, violence, or repeated violations. The employer bears the burden of proof and must comply with formal notice requirements, including delivery of written notice to the employee or notification to the competent Labor Court within five business days.
  
  

In Mexico, disciplinary actions are limited and structured. Measures outside these categories often invalidate the discipline and expose the employer to labor claims.

Disciplinary Actions That Are Prohibited

Mexican labor law clearly prohibits certain disciplinary practices, even if they are common in other jurisdictions. These prohibitions exist to protect employee dignity, wages, and fundamental labor rights. Any disciplinary action falling into these categories is invalid and creates immediate legal exposure for the employer.

• Monetary fines or salary deductions
  Employers may not impose fines, penalties, or salary deductions as discipline. Withholding wages as punishment is expressly prohibited and treated as illegal wage reduction.
  
  

• Punitive measures not defined in internal regulations
  Discipline must be grounded in a registered Internal Work Regulation. Sanctions that are improvised, discretionary, or not formally established are unenforceable.
  
  

• Public humiliation or coercive practices
  Disciplinary actions that shame, intimidate, or pressure employees publicly are prohibited. These practices violate employee dignity and can support claims of harassment or constructive dismissal.
  
  

• Disciplinary actions violating dignity or labor rights
  Any action that undermines human dignity, health, safety, or legally protected rights is invalid, regardless of the alleged misconduct.
  
  

In Mexico, discipline must correct behavior, not punish the person. Prohibited practices often create greater liability than the original issue they were meant to address.

Progressive Discipline and Due Process

Mexican labor law expects employers to use progressive discipline and respect due process before escalating sanctions. Immediate or severe discipline without prior steps is rarely upheld unless the misconduct is serious and clearly proven. Proper process protects both the employee’s rights and the employer’s legal position.

• Importance of progressive discipline
  Progressive discipline shows that the employer attempted to correct behavior before imposing harsher measures. Warnings, guidance, and corrective steps demonstrate good faith and are strongly favored by labor authorities.
  
  

• Requirement to document misconduct
  Each incident must be documented with dates, facts, evidence, and references to breached obligations or internal rules. Verbal actions without records carry little weight in disputes.
  
  

• Employee right to be informed and heard
  Employees must be informed of the alleged misconduct and given an opportunity to explain or respond. Discipline imposed without hearing the employee is often considered arbitrary.
  
  

• Why undocumented discipline is weak in labor disputes
  Labor courts rely on written evidence. When discipline is undocumented, the employer cannot prove proportionality or due process, and claims usually fail.
  
  

In Mexico, discipline is judged by process as much as outcome. Progressive, documented actions are far more defensible than sudden or informal sanctions.

Suspension as a Disciplinary Measure

Suspension is one of the most sensitive disciplinary actions under Mexican labor law. Although it is allowed in certain cases, the law limits its duration to a maximum of eight days. It is strictly regulated and often contested. Employers should see suspension as an exception, not a regular disciplinary tool.

• Legal basis for suspension
  Suspension is allowed only when it is expressly contemplated in the Internal Work Regulation and linked to a specific type of misconduct. Without this legal basis, suspension is considered unlawful.
  
  

• Maximum suspension duration
  Suspensions must be temporary and proportionate. In practice, they are limited to short periods, commonly no more than eight days. Excessive suspension may be treated as disguised termination or illegal wage withholding.
  
  

• Requirement to hear the employee before suspension
  Before imposing suspension, the employee must be informed of the alleged misconduct and given the opportunity to explain or defend themselves. Skipping this step weakens the legality of the measure.
  
  

• Documentation requirements
  The suspension must be documented in writing, stating the facts, legal basis, duration, and internal rule violated. Poor documentation often results in the suspension being invalidated.
  
  

In Mexico, suspension is lawful only when carefully justified and documented. Improper use frequently exposes employers to wage claims and labor disputes.

Burden of Proof in Disciplinary Disputes

In Mexican labor disputes, the burden of proof rests almost entirely on the employer. This principle shapes how disciplinary actions are evaluated and why informal or undocumented discipline regularly fails in court. Employers must be able to prove both the misconduct and the legality of the response.

• Employer bears full burden of proof
  When an employee challenges a disciplinary action, the employer must prove that the misconduct occurred, that it violated a legal or internal rule, and that the sanction was proportionate and lawful. Employees are not required to prove innocence.
  
  

• Importance of written evidence
  Labor courts rely heavily on written documentation. Written warnings, incident reports, acknowledgments, internal regulations, and dated records carry far more weight than testimony alone.
  
  

• Risks of relying on verbal warnings only
  Verbal warnings without documentation are difficult to prove and are often treated as nonexistent. In disputes, employers cannot rely on memory or internal explanations to justify prior discipline.
  
  

• Labor court standards
  Labor courts apply a strict, employee-protective standard. Any doubt about facts, evidence, or procedure is resolved in favor of the employee, especially where documentation is weak or missing.
  
  

In Mexico, discipline is only as strong as the evidence behind it. Without clear, written proof, employers rarely prevail in disciplinary disputes.

Just Cause vs Corrective Action

Mexican labor law makes a clear distinction between misconduct that justifies termination and conduct that must be addressed through corrective measures. 

Misunderstanding this difference is one of the most common and costly employer errors, especially for foreign companies unfamiliar with Mexico’s employee-protective framework.

• Difference between minor misconduct and serious misconduct
  Minor misconduct includes isolated performance issues, tardiness, or policy breaches that do not seriously affect the employment relationship. Serious misconduct involves conduct that breaks trust or makes continued employment impossible.
  
  

• Article 47 causes for termination with just cause
  Article 47 of the Federal Labor Law lists specific grounds for termination without severance, such as dishonesty, violence, threats, serious insubordination, repeated unjustified absences, or disclosure of confidential information. These causes are interpreted strictly.
  
  

• When corrective action is appropriate vs dismissal
  Corrective action is required when misconduct is minor, correctable, or not repeated. Immediate dismissal is justified only when conduct clearly falls within Article 47 and is properly documented.
  
  

• Risks of misclassifying misconduct
  Treating minor issues as just cause often results in unjustified dismissal claims. If the employer cannot prove a valid Article 47 cause, full severance or reinstatement may be ordered.
  
  

In Mexico, dismissal is the exception, not the rule. When in doubt, corrective action is safer than termination unless the legal threshold for just cause is clearly met.

Employee Rights in Disciplinary Processes

Mexican labor law grants employees strong protections during disciplinary processes. Discipline that ignores these rights is frequently overturned, regardless of the underlying misconduct. Employers must understand that disciplinary actions are always subject to employee challenge and legal review.

• Right to challenge disciplinary actions
  Employees may contest warnings, suspensions, or terminations they believe are unjustified. Challenges can be raised internally, during labor conciliation, or before labor courts.
  
  

• Right to reinstatement or severance if discipline is unlawful
  If a disciplinary dismissal is found unlawful, the employee may choose reinstatement or statutory severance. This choice belongs to the employee, not the employer.
  
  

• Role of labor conciliation and courts
  Most disputes begin with mandatory labor conciliation before moving to court. Authorities review evidence, procedures, and proportionality of the disciplinary action.
  
  

• Protection against retaliation
  Employees are protected from retaliation for asserting labor rights or challenging discipline. Retaliatory actions often worsen the employer’s liability and undermine its legal position.
  
  

In Mexico, employee rights are central to disciplinary review. Discipline that fails to respect these rights is rarely upheld, even when misconduct exists.

Common Disciplinary Mistakes Employers Make in Mexico

Disciplinary mistakes in Mexico usually arise from applying foreign HR practices to a highly regulated, employee-protective legal system. Even when misconduct exists, errors in process or documentation often invalidate the employer’s actions and create greater liability than the original issue.

• Disciplining without registered internal regulations
  Employers frequently issue warnings or suspensions without a registered Internal Work Regulation. Without this document, disciplinary measures lack a legal foundation and are commonly ruled unenforceable.
  
  

• Using fines or salary deductions
  Monetary penalties, wage deductions, or financial punishments are prohibited. Employers who use them face wage claims and violations, regardless of employee consent.
  
  

• Skipping documentation steps
  Verbal discipline without written records, incident reports, or acknowledgments leaves the employer unable to meet the burden of proof in disputes. Undocumented discipline is treated as if it never occurred.
  
  

• Terminating without meeting just-cause requirements
  Employers often dismiss employees for misconduct that does not meet the strict Article 47 standard. When just cause is not proven, termination is classified as unjustified and triggers severance or reinstatement rights.
  
  

In Mexico, disciplinary failure is usually procedural, not factual. Following the correct legal framework is essential to make discipline enforceable and defensible.

Compliance Risks and Legal Consequences

Disciplinary actions that do not follow Mexican labor law expose employers to significant legal and financial consequences. Even when employee misconduct exists, failure to respect procedure, proportionality, and documentation often shifts liability entirely to the employer.

• Unjustified dismissal exposure
  If a disciplinary termination does not meet the strict just-cause requirements, it is classified as unjustified dismissal. This triggers mandatory severance obligations regardless of the employee’s conduct.
  
  

• Back pay and reinstatement risks
  Employees may demand reinstatement to their position or payment of constitutional severance, including back pay, accrued benefits, and seniority premiums. The choice belongs to the employee.
  
  

• Labor inspections and fines
  Improper disciplinary practices may lead to labor inspections and administrative fines. Repeated violations increase scrutiny and weaken the employer’s position in future disputes.
  
  

• Reputational and operational impact
  Disciplinary disputes damage employee trust, increase turnover, and disrupt operations. For foreign employers, ongoing labor conflicts can delay expansion and create long-term compliance risk.
  
  

In Mexico, disciplinary non-compliance escalates quickly. What begins as a workplace issue often becomes a costly legal dispute when procedures are not followed correctly.

How Corrective and Disciplinary Action Is Managed Through an EOR

In Mexico, disciplinary authority must sit with the single legal employer. Corrective actions, suspensions, and terminations cannot be executed informally by a foreign company without legal standing.

An Employer of Record structure exists to ensure discipline is applied lawfully and defensibly under Mexican labor law.

• Single legal employer requirement in Mexico
  Only the registered legal employer may issue warnings, impose discipline, or terminate employment. Operational managers may report issues, but legal authority cannot be shared or delegated outside the employer entity.
  
  

• HRM’s role in enforcing discipline lawfully
  Human Resources Mexico acts as the legal employer and ensures all corrective and disciplinary actions align with the Federal Labor Law, Article 47 standards, and registered Internal Work Regulations.
  
  

• Documentation, hearings, and compliance handling
  HRM manages written warnings, evidence collection, employee hearings, suspension rules, and termination notices. Each step is documented to meet burden-of-proof requirements in case of dispute.
  
  

• Risk mitigation for foreign companies
  By centralizing discipline under a compliant local employer, foreign companies avoid unlawful sanctions, unjustified dismissal exposure, and procedural errors that often invalidate discipline in Mexico.
  
  

In Mexico, discipline is enforceable only when applied by the correct legal employer using the correct legal process. An EOR structure ensures workplace issues are addressed without creating labor liability.

FAQs

Can an employer discipline an employee without an Internal Work Regulation in Mexico?

In practice, no. Without a registered Internal Work Regulation, most disciplinary actions lack a legal basis. Warnings, suspensions, and sanctions are often invalidated in disputes because the employee was not formally notified of enforceable rules in advance.

Are verbal warnings legally valid in Mexico?

Verbal warnings are allowed but weak. If they are not documented in writing, they carry little to no evidentiary value in labor disputes. Courts typically treat undocumented verbal warnings as nonexistent, especially when used to justify stronger discipline later.

Can an employer suspend an employee without pay as punishment?

Only if suspension without pay is expressly allowed in the registered Internal Work Regulation and applied proportionately. Otherwise, unpaid suspension is treated as illegal wage withholding and can expose the employer to back pay claims and penalties.

What happens if an employer disciplines an employee unfairly?

The employee may challenge the action through labor conciliation or court. If discipline is found unlawful, consequences may include reinstatement, back pay, severance, and reversal of disciplinary records, depending on the action taken.

Can poor performance alone justify dismissal with just cause?

Usually no. Poor performance is typically addressed through corrective action, not immediate dismissal. Termination without severance is allowed only when strict just-cause grounds under Article 47 are proven with evidence and due process.

How does an Employer of Record help manage discipline in Mexico?

An Employer of Record like Human Resources Mexico acts as the single legal employer, ensures discipline follows labor law, manages documentation and hearings, and reduces the risk of unjustified dismissal or procedural errors for foreign companies.