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April 08, 2010
The Process of Terminating an Employee in Mexico Without Cause

In a BLR webinar entitled "Doing Business in Mexico: The Legal Basics for U.S. Employers Operating in Mexico," Javier Lazardi, Esq.,a partner in the Mexico City-based law firm Von Wobeser y Sierra, S.C. and Maria Fernanda Magallanes, Esq., an associate with Von Wobeser y Sierra, S.C. described Mexican law as it relates to terminating an employee without being able to prove just cause. In such an instance, full severance must be paid:

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  • Three months salary, based on an integrated salary
  • Twenty days of salary for each complete year employed, with the corresponding integrated salary
  • The seniority premium of 12 days of salary for each year of employment, with a cap of double the minimum wage of the geographic area where the company is located (US $107.00 per year worked)
  • Vacation days and vacation premium owed for the last year of employment and the proportional amount earned as of the date of termination
  • The payment of the proportional part of the Christmas bonus for the year in which the termination occurs
  • Any other salary or benefit owed as of the termination date such as food coupons, savings fund, bonuses, etc.

In addition, termination documents required or recommended include:

  • Letter of resignation, even if the employee has been fired
  • Receipt and release letter
  • Termination letter to be ratified before the Labor Board

Javier Lazardi, Esq. is a partner in the Mexico City-based law firm Von Wobeser y Sierra, S.C. The firm is the only Mexico-based member of ALFA International, the leading global network of law firms. He may be reached at jlizardi@vwys.com.mx.Maria Fernanda Magallanes, Esq., is an associate with Von Wobeser y Sierra, S.C. She also provides counsel to U.S. employers doing business in Mexico. She may be reached at fmagallanes@vwys.com.mx.


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