MEXICO Law and Practice Contributed by: Mauricio Moreno Rey, Anahí Serrano, Erick Sastré and Karla Fajardo, Cannizzo, Ortiz y Asociados, S.C.
7. Termination 7.1 Grounds for Termination Grounds for Termination
and they shall be entitled to indemnification by the employer. Collective Redundancies With respect to the collective termination of employ - ment relationships, Article 434 of the Federal Labour Law provides that the causes for termination of these employment relationships are causes of force majeure or acts of God not attributable to the employer, or the employer’s physical or mental incapacity or death, which produce as a necessary, immediate and direct consequence, the suspension of works; the manifest unprofitability of the operation; the exhaustion of the material object of an extractive industry; the legally declared insolvency or bankruptcy of the employer, if as a result the definitive closure of the company or the definitive reduction of its work is decided by resolu - tion; and some additional specific events for certain industries. In most of the above-mentioned cases, notice must be given to the labour authority, or authorisation must be obtained from the labour authority, to proceed with the termination. 7.2 Notice Periods As discussed in 7.1 Grounds for Termination , an employer that dismisses an employee based on any of the grounds for termination mentioned in Article 47 of the Federal Labour Law must give written notice clearly stating the conduct(s) that motivated the termi - nation and the date(s) on which they were committed, delivering the notice personally to the employee at the moment of dismissal or, alternatively, communicating it to the competent court, within five working days, in which case the employer must provide the employee’s last registered address in order to allow the authority to notify the employee. However, since the reform of the Federal Labour Law in 2019, it is no longer strictly necessary to deliver the notice of termination; the lack of written notice will only generate a presumption that the dismissal was unjustified, with the employer being able to prove in court the causes for termination. In case of occurrence of any of the causes mentioned in Article 51 of the Federal Labour Law, the employee may terminate the labour relationship within 30 days
In terms of the Federal Labour Law, there are three main categories of grounds for termination of labour relationships. • The first category of grounds for termination are provided by law (Article 53 of the Federal Labour Law), namely: (i) mutual consent of the parties; (ii) death of the employee; (iii) termination of the work or expiration of the term or investment of the capital; and (iv) physical or mental incapacity or manifest inability of the employee, which makes it impossible to perform the work. • The second category of grounds, pursuant to Article 47 of the Federal Labour Law, entitle the employer to dismiss the employee without any liability (without paying in the employee’s favour the corresponding severance). The employer who dismisses an employee must give written notice clearly stating the conduct or conducts that moti - vated the termination and the date or dates on which they were committed, delivering the notice personally to the employee at the moment of dismissal or, alternatively, communicating it to the competent court, in which case the employer must provide the employee’s last registered address in order to allow the authority to notify the employee. In the event that the employer fails to provide the employee with a notice of termination, established jurisprudence holds that the employer may present sufficient evidence during trial to demonstrate that the dismissal was justified. If, in the correspond - ing legal procedure, the employer does not prove the causes of the termination, the employee will be entitled to request their reinstatement in the job they were performing, or the corresponding com - pensation, and to be paid their overdue wages, calculated from the date of dismissal for up to 12 months, plus interest, where applicable. • The third category of grounds, pursuant to Article 51 of the Federal Labour Law, entitle the employee to terminate the labour relationship without any liability. The employee has 30 days following the date on which any of the causes mentioned in Arti - cle 51 occur, to terminate the labour relationship,
368 CHAMBERS.COM
Powered by FlippingBook