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Wrongful Dismissal in Mexico’s Tech Sector

by Carlos A. Vázquez    |    November 10, 2023    |      2 min read


Wrongful Dismissal in Mexico’s Tech Sector

Tech companies often ask, “What qualifies as wrongful dismissal in Mexico?” Here’s what you need to know to ensure that your company adheres to local labor laws and avoids potential legal pitfalls.

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Understanding Wrongful Dismissal

Wrongful dismissal occurs when an employer terminates an employee without following the correct legal framework. This could manifest in several ways:

  • Dismissal Without Proper Severance: If an employee is terminated for cause but does not receive the appropriate severance package.
  • Illegitimate Reasons for Termination: Claiming to fire an employee for cause when the reason is not legitimate or lacks solid evidence.
  • No-cause Termination: Letting an employee go without any justifiable cause.

Legal Recourse for Employees

Employees who believe they have been wrongfully dismissed have the right to file a complaint with the Conciliation and Arbitration Board within 60 days. If the employer fails to prove just cause, the employee could be entitled to:

  • Reinstatement with back pay.
  • A full severance package as warranted by termination without cause.
  • Additional compensation if reinstatement is refused.

Preventing Wrongful Dismissal Claims

For tech companies, preventing wrongful dismissal claims starts with a thorough understanding of Mexico’s Federal Labor Law. It is essential to:

  • Ensure that the reasons for termination are legitimate and well-documented.
  • Provide the appropriate severance package when necessary.
  • Follow the legally mandated procedures for terminations carefully.

Moving Forward

In the tech sector, where talent and reputation are invaluable, avoiding wrongful dismissal is not just about legal compliance but also about maintaining trust and integrity. CodersLink provides the guidance and expertise needed to navigate these complex scenarios, ensuring that your tech business remains on the right side of the law.

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