Definition of collective dismissal (number of employees concerned):
No specified number in the legislation.
Art. 434 II, III, V: 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):
See: art. 892-899 FLA (for 434 subsections I, III and V) and art. 900-919 FLA (for art 434 subsection II) on Proceedings applicable to collective disputes (including collective termination): duty to inform and consult with employees representatives.
Notification to the public administration:
*Notification to the Board of Conciliation: Art. 435 FLA.
*Proceedings before the Board of Conciliation: art. 892-899 (for 434 subsections I, III and V) and art. 903-919 FLA (for art 434 subsection II).
Notification to workers' representatives:
See: art. 892-899 and art. 900-919 FLA on Proceedings applicable to collective disputes (including collective termination): duty to inform and consult with employees representatives.
Note that the procedure is brought before the Board of Conciliation and it is in charge of informing and calling upon the worker's representatives for negotiation. (see art. 434 FLA)
Approval by public administration or judicial bodies:
*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. 892ff (for 434 subsections I, III and V) and art. 903-919 FLA (for art 434 subsection II).
On the proceedings to be followed in case of bankruptcy, see art. 782 FLA.
Approval by workers' representatives:
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):
Art. 437 FLA: seniority-based priority to remain in the undertaking.
Employer's obligation to consider alternatives to dismissal (transfers, retraining...):
Priority rules for re-employment:
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.