Discipline and Termination in Mexico

Although Mexican Labor Law is basically geared to compensate the difference in economic strength between employer and employee, in order to benefit the latter, there are instances in which the worker is subject to disciplinary action including his/her firing from the job.

Disciplinary action can be brought against the employer for violations of the law both in the form of direct responsibilities accruing to the worker as well as pecuniary fines imposed by and paid to the authorities.

Fines

Most violations of labor laws, punishable through fines, includes those pertaining to hindering the basic rights of the worker, such as not complying with the days of rest or with the maximum hours, the payment of wages, etc.

The structure of the fines is measured in daily general minimum wages in order to avoid losing value of the Mexican peso through inflation. The lowest fine is equivalent three days of minimum wages and the highest fine is 315 minimum daily wages.

In equivalent dollar terms the lowest fine, at the time of this writing, is around ten dollars and the maximum around US $1,115.00 according to the violation and the circumstances of the case, which should be judged by the labor authorities after a hearing is afforded.

Although it is possible and the law foresees that not only the employer but the employee as well may be in violation of the law, there is a Constitutional limitation to fine a worker up to one day of his wages according to Article 21 of the Mexican Constitution.

Employees tampering with payment of wages or using fake documentation to show receipts in excess of the wages paid may be also punished with imprisonment from six months to four years plus fines of up to 200 daily minimum wages, which at this writing is approximately $730 US dollars.

Termination of Employment Contract

Of course the major consequence of a violation to the labor laws is the direct responsibility of the offending party versus its counterpart, which usually ends in the termination of the contract if for no other reason, for loss of the trust.

If termination occurs by mutual consent the responsibility if any will normally be incorporated in the agreement to end relations. If on the other hand the labor contract is rescinded by unilateral decision we have two alternatives.

The worker may end the relationship at any time as part of his freedom of activities. However, the employer may not terminate a relationship except for a justified cause, and if there is none the worker may request mandatory reinstallation in his job. The employer may then accept the full level of responsibility and terminate the relationship without just cause by paying an indemnification of three months of wages plus 20 days for each year of service.

Termination of Employee - Burden of Proof

When a worker alleges that he/she has been fired unjustifiably and the employer denies without further explanation the, the burden of proof does not revert to the worker, but lies with the employer. Articles 46 and 47 of the Federal Labor Law establish that the employer must offer determined causes and give the worker a written notice in which the causes are stated giving the worker proper information in order not to be left defenseless.