MEXICO Law and Practice Contributed by: Luis Álvarez Cervantes, Adolfo Athié Cervantes, Alejandro Barrera, Jesús Colunga, Eduardo Kleinberg, Juan José López de Silanes, Carlos Martínez-Betanzos and Amílcar Peredo, Basham, Ringe y Correa S.C.
Employees must have at least one paid day of rest for every six consecutive days worked. Currently, the standard workweek is 48 hours. How - ever, on 3 March 2026, a constitutional reform was enacted to gradually reduce the workweek under the following terms: • 2026 – 48 hours (transition year);
full severance, including lost wages (capped at one year) plus legal interest. If termination with cause is properly substantiated, the employee is entitled only to accrued benefits up to the termination date. The employer must initiate a specific termination process within 30 days from when it became aware of the grounds for dismissal. Termination Without Cause If the employer terminates the employment relation - ship without just cause as defined by law, the employ - ee is entitled to receive: • a constitutional severance payment equal to 90 days of daily integrated salary; • 20 days of daily integrated salary for each year of service; • a seniority premium equivalent to 12 days’ salary per year worked, capped at twice the minimum wage; and • accrued salaries and benefits. The integrated salary is comprised of the employee’s base salary plus any benefits received for their work during the past 12 months prior termination. No prior notice is required for termination. All terminations must be documented in writing either through a mutual employment termination agreement or, depending on the type of termination, with the cor - responding notices or supporting documentation. Collective Redundancies The FLL defines collective redundancies as the termi - nation of employment relationships resulting from the closure of companies or establishments, or from the permanent reduction of their operations. The law recognises the following as valid grounds for termination in such cases: force majeure or fortuitous events, the physical or mental incapacity or death of the employer, evident infeasibility of continuing opera - tions, depletion of the natural resource in extractive industries, and legally declared insolvency or bank - ruptcy.
• 2027 – 46 hours; • 2028 – 44 hours; • 2029 – 42 hours; and • 2030 – 40 hours
Employees are entitled to a daily rest break of at least 30 minutes per shift. If taken on the employer’s prem - ises, the break is counted as part of working time. Any hours exceeding the statutory weekly maximum are considered overtime and must be paid according - ly. Overtime cannot be substituted with other benefits. All employees, regardless of position, rank or classifi - cation, are entitled to overtime pay for hours actually worked beyond the legal maximum. Overtime must be performed voluntarily, under extraordinary circum - stances, and compensated according to the law. 4.4 Termination of Employment Contracts Mexico’s labour law framework provides strong pro - tections for employees, and the concept of “employ - ment at will” does not exist. Although employers may end the employment rela - tionship at any time, it is important to distinguish between termination with cause and termination with - out cause. Termination With Cause Article 47 of the FLL specifies the causes that justify termination without liability for the employer, such as gross misconduct, material damages and unjustified absences, among others. The employer must have solid evidence to support the cause of termination. In the event of a dispute before labour authorities, employers have full burden of proof and lack of evidence may result in the dismissal being considered without cause, entitling the employee to
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