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> GOVERNANCE - home > Employment protection legislation database - EPLex > Mexico

Mexico - Procedural requirements for collective dismissals for economic reasons (redundancy, retrenchment)


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Definition of collective dismissal (number of employees concerned):
No specified number in the legislation.

Remarks:
  • Art. 434 II, III, IV: Grounds for collective termination:
    - the known and obvious inability of the undertaking to pay its way;
    - the exhaustion of the substance being extracted by a mining undertaking;
    - statutory declaration of insolvency proceedings or bankruptcy if the competent authority or the creditors decide on the definitive closure of the undertaking or the definitive retrenchment of production.

Prior consultations with trade unions (workers' representatives): Yes

Remarks:
  • See: art. 900-919 FLA on Proceedings applicable to collective disputes (including collective termination): duty to inform and consult with employees representatives.

Notification to the public administration: Yes

Remarks:
  • *Notification to the Board of Conciliation: Art. 435 FLA.
    *Proceedings before the Board of Conciliation: art. 903-919 FLA.

Notification to workers' representatives: Yes

Remarks:
  • See: art. 900-919 FLA on Proceedings applicable to collective disputes (including collective termination): duty to inform and consult with employees representatives.

Approval by public administration or judicial bodies: Yes

Remarks:
  • *Art. 435 FLA: approval by the Board of Conciliation Arbitration
    *Proceedings before the Board of Conciliation when collective termination is based to the self-evident non profitability of the operations of the undertaking: art. 903-919 FLA.

    On the proceedings to be followed in case of bankruptcy, see art. 782 FLA.

Approval by workers' representatives: No

Remarks:
  • However, during the proceedings before the Board of Conciliation, if the employer and the trade union reach an agreement, the Board will approve it (art. 906 IV) FLA).

Priority rules for collective dismissals (social considerations, age, job tenure): Yes

Remarks:
  • Art. 437 FLA: seniority-based priority to remain in the undertaking.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: Yes

Remarks:
  • Art. 438 together following 154 FLA . In equality of circumstances, employers must prefer Mexican workers over non-Mexican workers, those that satisfactory served for a longer period of time, those who do not have any other economic income and have family responsibilities and those that are members of a trade unions.

+ show references

Definition of collective dismissal (number of employees concerned):
No specified number in the legislation.

Remarks:
  • Art. 434 II, III, IV: Grounds for collective termination:
    - the known and obvious inability of the undertaking to pay its way;
    - the exhaustion of the substance being extracted by a mining undertaking;
    - statutory declaration of insolvency proceedings or bankruptcy if the competent authority or the creditors decide on the definitive closure of the undertaking or the definitive retrenchment of production.

Prior consultations with trade unions (workers' representatives): Yes

Remarks:
  • See: art. 900-919 FLA on Proceedings applicable to collective disputes (including collective termination): duty to inform and consult with employees representatives.

Notification to the public administration: Yes

Remarks:
  • *Notification to the Board of Conciliation: Art. 435 FLA.
    *Proceedings before the Board of Conciliation: art. 903-919 FLA.

Notification to workers' representatives: Yes

Remarks:
  • See: art. 900-919 FLA on Proceedings applicable to collective disputes (including collective termination): duty to inform and consult with employees representatives.

Approval by public administration or judicial bodies: Yes

Remarks:
  • *Art. 435 FLA: approval by the Board of Conciliation Arbitration
    *Proceedings before the Board of Conciliation when collective termination is based to the self-evident non profitability of the operations of the undertaking: art. 903-919 FLA.

    On the proceedings to be followed in case of bankruptcy, see art. 782 FLA.

Approval by workers' representatives: No

Remarks:
  • However, during the proceedings before the Board of Conciliation, if the employer and the trade union reach an agreement, the Board will approve it (art. 906 IV) FLA).

Priority rules for collective dismissals (social considerations, age, job tenure): Yes

Remarks:
  • Art. 437 FLA: seniority-based priority to remain in the undertaking.

Employer's obligation to consider alternatives to dismissal (transfers, retraining...): No

Priority rules for re-employment: Yes

Remarks:
  • Art. 438 together following 154 FLA . In equality of circumstances, employers must prefer Mexican workers over non-Mexican workers, those that satisfactory served for a longer period of time, those who do not have any other economic income and have family responsibilities and those that are members of a trade unions.