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Employment Termination in Mexico

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Termination process

Federal Labour Law provides a distinction between dismissal (Spanish: despido) and termination (Spanish: terminación). Dismissal can be justified by reasons related to the employee's conduct, while termination can be for economic reasons, employee's incapacity, force majeur, death of the employee or termination of the work.

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Notice period

Employers and employees have no obligation to notify the other party in advance of a dismissal or resignation and notice obligations for employees are not recognised or enforceable under Mexican law. Notice obligations for employers can be enforced if they have been agreed to, but it is uncommon for Mexican employers to do so.

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Severance pay
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Probation periods

If the employment contract is for more than 180 days or for an indefinite period of time, the employer may put in place a probationary period of up to 30 days. It is possible to extend the probationary period by up to 180 days for managerial, technical or professional positions

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