Recent Decisions in Mexican Labor Cases

May 23, 2007
Recent Decisions in Mexican Labor Cases

 For Cause Termination of Managerial Employees. Mexico's Federal Labor Law (Ley Federal del Trabajo) recognizes thestatus of certain management employees who provide executive services, such as directors, treasurers, auditors, etc. When anemployer terminates the labor relationship with such a worker based on a justified cause, notice of such termination must bedelivered to the employee in writing. If the employee rejects such notice of termination, the employer must deliver the noticein the presence of two (2) witnesses and file the notice with the local Labor Conciliation and Arbitration Board within five(5) days following the termination date. The Mexican Supreme Court of Justice recently held that loss of confidence or trustin a management employee is a justified cause for termination (when there is evidence of such cause), and the employer isnot obligated to provide notice to the employee in writing or file such notice with the Labor Board. Resignation of Employees Submitted on Pre-Printed Forms. The Federal Labor Law does not contemplate in any of itsprovisions the resignation of an employee who submits a resignation letter on a pre-printed form or template, so the intent ofthe employee not to continue working for the employer may be submitted on such a preprinted format. In any case, theMexican Supreme Court of Justice has determined that the employee has the burden of proof to show that a signature on apre-printed resignation form was given under duress.

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