Unjust Termination in Mexico

In Mexico, unlike the U.S., employment isn't 'at will.' Instead, the principle of stability in employment protects employees from unjust dismissal. This principle ensures employees receive indemnities and payments if dismissed without cause.

When unjustly dismissed, employees are entitled to compensation. This includes three months of integrated salary and additional benefits. This legal framework aims to safeguard employees' rights and provide financial security during disputes.

Employees facing unjust dismissal have two main options: seek compensation or demand reinstatement. Compensation involves receiving indemnities, while reinstatement allows returning to the same position with back pay.

Constitutional indemnity includes three months of integrated salary and other benefits. If reinstatement is chosen, employees can reclaim their job with the same conditions, ensuring continuity and fairness in employment.

Employers bear the burden of proof to demonstrate work conditions. Employees can claim additional benefits like overtime and commissions, potentially increasing indemnities and back pay exponentially.

Understanding these legal obligations is crucial for employers. Failure to comply can lead to significant financial consequences, emphasizing the importance of adhering to labor laws and maintaining fair employment practices.

It is critical that you notify HRM Human Resources Mexico immediately if there is a problem with an employee. If you terminate an employee without seeking our expert guidance, the 90 day severance and other payments will apply. You hired HRM as your PEO in Mexico so that there is 100% compliance in Mexico. Don't make big mistakes.