Offers of Employment and Notice of Termination of Employee Provided to Mexican Social Security Institute.

July 26, 2006
Offers of Employment and Notice of Termination of Employee Provided to Mexican Social Security Institute.

The Mexican Supreme Court has sustained in previous cases offers of employment in labor lawsuits pursued by an employer when the employer has previously given notice to the Social Security office of the termination of such employee, as in cases of bad faith and, as a result, the employer has not had toprovide any proof concerning the facts surrounding such termination. Recently, the Court sustained that the deregistration of an employeebefore the Mexican Social Security institute on a date prior to that on which the employer offered to rehire such employee as part of a laborlawsuit also implies bad faith. In this regard, it is worth noting that an offer of employment must meet certain conditions in order to beconsidered as done in good faith. The second requirement is that the offer to rehire an employee must perfect the true intent of the employerto continue the labor relationship. In contrary cases, the offer will be considered as made in bad faith and will not be taken into account inevidence. In regard to the notice of termination of the employee before the Mexican Social Security Institute, by virtue of the case currentlybeing discussed, it is recommended that employers do not deregister their employees until they are sure rehiring will not take place, and waitfor a period of no fewer than 60 days from the date of the hearing at which rehiring is offered. See Case Decision 19/2006 by the SecondChamber of the Supreme Court of Justice of the Nation in Private Session dated February 24, 2006.

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