Following the principles of art. 123(A) of the Constitution, the Federal Labour Act governs the employment relationship of "workers, employees, domestic workers, craftspersons and in general to all contracts of employment". (see art. 1 FLA).

Those relations regulated in art. 123(B) of the Constitution (public and civil servants) do not fall into the scope of application of FLA and are subject to separate regulations (which were adopted by Federal Act of 27 December 1963).

In addition, according to art. 351 and 352 FLA, the FLA does apply to family workshops "talleres familiales", except for the provisions related to hygiene and safety.

Note that workers in positions of trust, seafarers, flight crews, railway workers, road transport workers, the labour force in zones under federal jurisdiction, rural workers, commercial travellers, professional sportsmen, actors, musicians, home workers, domestic employees, mine workers, workers in hotels, restaurants, bars and similar establishments, family undertakings, resident medical doctors during specialist training and employees of universities and autonomous institutions of higher learning are subject to the special provisions of the Title VI of the FLA, which comprises arts. 181 to 353 u.

The employment relationship may be for a specified piece of work or of specified duration or of unspecified duration. In the absence of any express stipulation, the relationship is to be deemed to be of unspecified duration.
A contract for a specified piece of work may be made only when such contract is required by the nature of the work (art. 36, FLA). A contract of a specified duration may be made only in the following cases (art. 37, FLA):
*where the nature of the work to be done so requires;
*when the contract is to provide a temporary substitute for another employee; and
*in the other cases provided for in this Act.

Employment relationships for work in mines lacking in minerals capable of paying the cost of the operation or for the reopening of abandoned or unworked mines may be for a specified period, for a specified piece of work or for the investment of a fixed capital sum (art. 38, FLA).

If on the expiry of the specified period the material to be worked still subsists, the employment relationship continues for as long as this circumstance continues (art. 39, FLA).

No statutory limitation.

No statutory limitation.

Article 39 (A) establishes that: In contracts for an undetermined period of time and those exceeding 180 days, a probationary period of no more than 30 days can be established, with the sole aim of verifying that the employer meets the requirements and knowledge demanded for the vacancy.

The probationary period set in the previous paragraph, can extend to 180 days, only for the recruitment of directing and managing posts, or other persons exercising directing or administrative functions in the enterprise or business, or to perform technical or specialized tasks. […]

* A dismissal on the ground of trade union membership or participation in a lawful strike amounts to a dismissal without cause (art. 123 A XXII of the Constitution).

* Art. 3 of the FLA prohibits discrimination between workers on the grounds of ethnic or national origin, race, sex, age, disabilities, social condition, health condition, religion belief, condition of migrant, opinions, sexual orientation, marital status or any other ground threatening human dignity .

(Note also that Art. 1 of the Constitution establishes a general prohibition of any discrimination on the grounds of ethnic or national origin, gender, age, disabilities, social condition, health condition, religion, opinions, sexual orientation, marital status or any other ground threatening human dignity or which aims to diminish human rights and freedoms).

See also art 1(III) and 9 Federal Law to prevent and eliminate discrimination of 2003, last amended in 2012.

•Pregnancy, change of marital statutes and taking care of underaged children - art 133 (XV) FLA : The employers and their representatives cannot dismiss or coerce an employee, directly or indirectly, on the grounds of pregnancy, change of marital status or for taking care of underaged children. For pregnancy and maternity, see also art 170 FLA.

Fulfilling state duties and performing jury services – art 132 FLA (VIII): Employers must allow workers the necessary time to exercise their right to vote and to fulfil jury, electoral and registration services as observed in article 5 of the Constitution when the tasks must be fulfilled in working hours.

*Art. 161 FLA: Workers with more than 20 years of service can only be dismissed on of the grounds listed art. 47 (reasons related to the worker's conduct) provided that such reason is particularly serious or makes it impossible to continue the employment relationship.

Art. 47 FLA: written notification clearly stating the conduct –or conducts- motivating the dismissal, and the date or dates when such conduct happened. The written notification shall be delivered to the employee in person at the time of the dismissal or shall be communicated to the corresponding Tribunal within the next five working days. To this end, the employer shall provide the last registered residence address of the employee, so the authority can personally notify the employee.
The statute of limitations to file any legal actions deriving from a dismissal will only start running until the worker receives personally the notification.
The failure to notify the worker personally or through the Tribunal, presumes the dismissal as unjustified, unless evidence to the contrary is provided.

No statutory minimum notice period.

Art. 434 II, III, V: Grounds for collective termination:
- the evident and notorious inability to pay the operations/exploitation of the undertaking (II);
- the exhaustion of the substance being extracted by a mining undertaking (III);
- statutory declaration of insolvency proceedings or bankruptcy only if the competent authority or the creditors decide on the definitive closure of the undertaking or the definitive retrenchment of production (V).
Art. 439: When the adoption of new working procedures or new equipment/machinery brings as a consequence the reduction of the number workers.

Art. 435 (II). The employer shall obtain, previous to the termination of the ER, the Tribunal’s authorization according to the procedure (collective special procedure) in arts. 897 and following articles
Art. 435 (I). I and V of Art. 434, the Tribunal shall be notified, to approve or not the dismissal according to procedures established in articles 897 and following articles

For art. 434 subsections III and V (exhaustion of the substance being extracted by a mining undertaking (III) and statutory declaration of insolvency proceedings or bankruptcy (V)): art. 872, 873-A (applicable provisions), 897, 897-A to 897-G FLA (special collective proceedings);
For art. 434 subsection II (evident and notorious inability to pay the operations/exploitation of the undertaking): arts. 900-919 FLA on Special proceedings applicable to collective disputes of economic nature. In this particular case, the tribunals shall strive to, first and foremost, that the parties reach an agreement. To this end, they can try to conciliate the parties at any time of the proceedings, at any procedural stage, as long as the resolution to end the conflict has not been issued (Art. 901).
In the case of Art. 439 (adoption of new procedures or new equipment/machinery that brings as a consequence the reduction of the number workers) it is expected an attempt of the parties (employer and worker representatives) to reach an agreement prior triggering any proceeding. If no agreement is negotiated then employer shall obtain the authorization from the Tribunal as per the proceedings established in arts. 897, 897-A to 897-G of the FLA.

*Notification to the Tribunal: Art. 435 FLA.

u2022For art. 434 subsections III and V (the exhaustion of the substance being extracted by a mining undertaking (III) and statutory declaration of insolvency proceedings or bankruptcy (V)): art. 872, 873-A (applicable provisions), 897-A to 897-G FLA (special collective proceedings);
u2022For art. 434 subsection II (evident and notorious inability to pay the operations/exploitation of the undertaking): arts. 900-919 FLA on Special proceedings applicable to collective disputes of economic nature.
u2022Note that the procedure is brought before the Tribunal, which is in charge of notifying the defendant (i.e. workers and representatives in the collective termination), which get an opportunity to respond to the claim and provide evidence.

*Art. 435 FLA: approval by the Tribunal
*Proceedings before the Tribunal: In the case of art. 434 subsection II (evident and notorious inability to pay the operations/exploitation of the undertaking), previous to the termination, the employer shall obtain the authorization of the Tribunal as per the regulations established in the Special proceedings applicable to collective disputes of economic nature (arts. 900-919 FLA).

In the case of art. 434 subsection III (the exhaustion of the substance being extracted by a mining undertaking) the employer shall request the authorization of the Tribunal as per proceedings established in arts. 897, 897-A to 897-G.

In the case of art. 434 subsection V, the termination shall be notified to the Tribunal as per (Art. 435 (I)) to approve or reject the termination after following the proceedings established in arts. 897, 897-A to 897-G.

However, during the proceedings before the Tribunal, if the employer and the trade union reach an agreement, the Tribunal will approve it and will have the effects of a final judgment (art. 906 (IV) FLA).

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

Art. 438 following 154 FLA: In equal circumstances, the following workers will be hired with priority: Mexican workers over non-Mexican workers, workers who satisfactory served for a longer period of time, workers who do not have any other economic income and have family responsibilities, workers who have finished compulsory education, qualified personnel over non-qualified, workers with better skills and knowledge and workers members of trade unions.
In case of collective agreement with admission clause this u2013and the trade union by laws- will prevail over the present article in the case of preference to access employment vacancies or newly created posts.

No severance pay.
The FLA does not make a conceptual difference between severance and redundancy payment. The term used is "indemnización " irrespective of the ground of the termination.

Art. 436 FLA: 3 months' salary + seniority award (12 days per year of service).
Art. 439: When termination is due to new machinery or working procedures, when an agreement is not reached between the parties, the employer has to obtain the Tribunal’s authorization according to the special collective proceedings established in Art. 897 and related ones. Workers losing their jobs are entitled to a compensation:
4 months of wages + 20 days of wages per year of service or any amount agreed in work contracts –if it is higher- and the seniority award (Art. 162 FLA)

Note: The Supreme Court determined the basis for calculation of the seniority award: it cannot be below the minimum wage but cannot be either above two minimum wages. Therefore, it is capped (unlike other types of compensation established in the FLA).

Art. 48 and 50 FLA (articles modified in November 2012)

Art. 50 FLA.

Art. 48 FLA: The worker may request to the Conciliation Authority or the Tribunal, if no conciliatory arrangement is reached, his/her reinstatement in the post occupied or compensation in the form of three months wages, at his or her choice.

If, in the corresponding trial, the employer does not prove the reason for dismissal, the worker is entitled to (in addition to reinstatement or compensation of three months wages) receive lost wages from the date of the unfair dismissal up to 12 months. If after 12 months the trial proceedings have not yet been concluded or the judgment has not been complied with, the worker shall also receive interests (2% monthly of 15 months wages).

Under Art. 49 of the FLA, the employer may, in the following cases, be released from the obligation to reinstate the worker by paying the compensation referred to in Art. 50:

-in the case of workers who have been employed for less than one year in the undertaking;
-if sufficient evidence is furnished to the satisfaction of the Tribunal that the worker to perform his/her work needs to be in direct and permanent contact with the employer and the Tribunal determines, taking into consideration all the circumstances of the case, that continuation of the work is impossible;
-in the case of employees in a position of trust;
-in domestic service; and
-in the case of casual workers.

Art. 123 (A)(XX) of the Mexican Constitution.
Employment disputes are heard by Labour Courts [u2026] However, before resorting to labour courts, workers and employers must resort to the appropriate conciliatory institution.

Art. 684-B FLA: Before requesting the Tribunals intervention, workers and employers shall request from the competent Conciliatory Centre the start of conciliation proceedings, except in some specific cases determined by the FLA (e.g. those established in article 685 Ter)

Preliminary mandatory conciliation proceedings regulation is in Arts. 684-A to 684-E.

Art. 123 (A)( XX)of the Mexican Constitution, 604 FLA.

In Mexico, employment disputes are heard by labour tribunals/courts (Judiciary at the local (state) or federal level. They can be heard by the Federal or Local courts according to distribution of competencies –by industry/services, type of enterprises, and subjects (Art. 123 (A) (XXXI), Art.527-529 FLA)

Article 604 FLA: The Labour courts of the federal or state judiciary branch, in the scope of their competencies, will hear and resolve labour related to employment relationships or facts related to them, arising between workers and employers, between several workers or between several employers. This is a tripartite body that exercises jurisdictional functions. See Art. 605 for composition and structural organization.

Note: The Constitutional reform to replace the Conciliation and Arbitration Boards with labour courts was adopted in February 2017, and the FLA reform in May 2019. Courts will begin their functions within a maximum period of 4 years from May 1, 2019. During this transition period, Conciliation and Arbitration Boards will continue to resolve disputes.