Termination of Employment Relationships (First Part)

May 10, 2013
Termination of Employment Relationships (First Part)

Based on Mexico's labor laws, any employer that seeks to terminate personnel should be careful with the implementation of the appropriate documentation, from the point of hiring personnel until termination of the employment relationship. Otherwise, the employer may have trouble terminating the employment relationships, given that Mexican labor law protects employee rights, irrespective of whether employees are of Mexican or foreign nationality.As a fundamental principle, Mexican labor law establishes that employees may not waive their labor rights. Therefore, any provision stating otherwise will be null and void and have no value. It is important to note that the Federal Labor Law is extremely protective of employee rights and expressly states that for the interpretation of labor regulations in Mexico, the interpretation that is more favorable to the employee will prevail.On the other hand, it is also important to mention that the individual employment agreement is the appropriate document upon which employers should rely in order to establish and evidence the conditions under which their workers will be hired. The Federal Labor Law states that the lack of execution of a written individual employment agreement does not deprive the employee of the rights arising from employment regulations and the services rendered, since the responsibility for failure to comply with this formality is attributed to the employer.

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