Employee termination
in Mexico.

SALARY PAYMENT IN Mexican Peso (MXN, $)

CONTRACT LANGUAGES Spanish / English

PAYROLL TAX 36.69% – 43.72%

PAYROLL CYCLE Bi-weekly

TIME TO HIRE 12 hours

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Mexico

Valid reasons to terminate employment in Mexico

Valid reasons to termination the employment relationship in Mexico is;

the employee has been caught falsifying documentation;
the employee during work acts with dishonesty, violence, or ill-treatment of co-workers;
the employee intentionally causes material damage to objects at work;
the employee commits immoral acts in the workplace;
the employee disobeys the employer of managers;
the employee attends work drunk
the employee is jailed or prisoned;

Unfair reasons to terminate employment in Mexico

In Mexico you cannot terminate an employment relationship based on the gender, age, sexual orientation, or religious affiliation of the individual. The Mexican Federal Labor Law protects the rights of the employees from such discrimination.

Dismissal procedure in Mexico

An employer who dismisses an employee has to give written notice stating clearly the reason from termination. The dismissal notice must include the date/dates that misconduct occurred.

The notice needs to be personally delivered to the employee or delivered to competent authority within five business days. Failure to give personal notice to the employee can be considered unjustified termination.

Resignation procedure in Mexico

Employees in Mexico must inform the employer in writing of their resignation in which they state the reason for their resignation and the date on which they will resign.

Employees in Mexico do not need to give a minimum notice period; however two weeks’ notice is customary.

Hiring in Mexico, Made Easy

Your business can easily hire employees in Mexico without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

Is it difficult to terminate employment in Mexico?

It can be difficult to terminate employment in Mexico without just cause. However, if the employee is not producing the work, you need done or if they are causing significant issues in the workplace then there are legal rights for employers to terminate employment with just cause.

In sum, the Mexican Federal Labor Law does a good job in protecting both employees and employers to ensure the employment relations is fair. You will need proof with proper reason to terminate employment.

What are the risks of terminating employment in Mexico, and how do I mitigate them?

If you wrongfully terminate employment in Mexico your company could face heavy fines from the Mexican authorities. It is possible to pay fines to the employee of 100 to 1,000 times the amount of the Unidad de Medida y Actualización.

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