Must read if you’re laying off your Mexican employees due to Coronavirus

Laying off an employee and Mexican Labor Law.

By Rafael Solorzano.

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Due to the health crisis, we are facing, many (if not most) employers have had to lay off employees which brings concerns about the employer’s obligations:


Article 427 of the Federal Labor Law.


Regarding the chapter addressing “Collective Suspension of Labor Relations”, labor relations may be suspended collectively and section VII specifies the causes for temporary suspension: “the suspension of work declared by the competent health department, due to a health contingency”.


Furthermore, article 429 section IV stipulates: “Concerning section VII, the employer shall not need prior approval or authorization by the Board and will be obligated to pay employees at least the current minimum wage, every day the suspensions lasts not to exceed one (1) month”


Additionally, article 132 section XIX Bis, regarding “Employers Obligations” stipulates: “Comply with instructions issued during a health contingency, and provide employees the support ordered by the authority, to prevent the spread of diseases when a health contingency has been declared”.


Lay off is limited to 30 days and regardless of the fact that the employee may earn more than minimum wage ($185.56 pesos In Baja California), the employer is not obligated to pay more than such amount during this 30 day period.


The problem here is, what happens after those 30 days are over.


Employer and employee may agree to Exchange this period for vacations or a right to be away from work without pay, this must be agreed in writing but keep in mind that the employee is not obligated to accept such terms unless there is mutual consent.


When in doubt always ask your labor attorney (not just any attorney).

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