Talento | Employers

Navigating Termination Notices in Mexico’s Tech Industry

by Carlos A. Vázquez    |    November 8, 2023    |      3 min read


Navigating Termination Notices in Mexico's Tech Industry

When it comes to managing tech teams in Mexico, one pressing question for employers often arises: “Do you have to give advance notice to terminate someone in Mexico?” The answer, while seemingly straightforward, is nuanced and deserves a closer examination within the context of Mexican labor laws and industry best practices.

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No Advance Notice Required — But Severance is a Must

Mexican labor laws, known for their employee-friendly stance, do not necessitate employers to provide advance notice of termination. This means that tech companies can make immediate decisions when it comes to dismissal without the need for a pre-defined notice period. 

However, the absence of an advance notice requirement does not eliminate the obligation to offer a severance package to those on indefinite contracts. The complexity of severance can vary, and it is often directly tied to the nature of the termination.

Definite Contracts and the Supreme Court’s Stance

For employees working under definite or fixed-term contracts, the terms of the agreement take precedence. Employers must carefully craft these agreements to include clear instructions for early termination. 

It is important to highlight that the practice of “contract splitting” to avoid benefits has been deemed illegal by Mexico’s Supreme Court, signaling the importance of upholding ethical employment practices.

Unionized Employees and Collective Bargaining Agreements

In scenarios where employees are unionized, collective bargaining agreements enter the stage, potentially placing further restrictions on terminations. 

Unions hold considerable sway in Mexico and can represent employee interests even without direct consent. Respecting these agreements is not just a matter of legal compliance but also a testament to a company’s commitment to fair labor practices.

The Art of Professional Termination

While the law may not enforce advance notice, the art of professional conduct suggests that providing a courtesy notice period, such as the customary two weeks, can preserve business relationships and uphold the company’s reputation in the tech community. This practice, while not legally binding, reflects a level of respect and professionalism that can be beneficial in the long term.

A Strategic Approach to Termination

For tech companies in Mexico, understanding the landscape of employee termination is critical. CodersLink stands as a strategic ally in this regard, guiding companies through the legalities and best practices of termination processes. 

A strategic approach — one that balances legal requirements with ethical considerations — is paramount in fostering a resilient and respectful tech ecosystem.

In closing, while advance notice isn’t mandated by Mexican labor law, a comprehensive and considerate approach to termination can ensure compliance, protect against legal risks, and maintain the integrity of the employer’s brand in the competitive tech industry.

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