Definition of collective dismissal (number of employees concerned):
No specified number in the legislation.
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
Prior consultations with trade unions (workers' representatives):
Yes, but only 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) where 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 the employer shall obtain the authorization from the Tribunal as per the proceedings established in arts. 897, 897-A to 897-G of the FLA. In other cases, the defendant obtains the information via the corresponding legal procedure.
Notification to the public administration:
*Notification to the Tribunal: Art. 435 FLA.
Notification to workers' representatives:
For 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);
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.
Note 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.
Approval by public administration or judicial bodies:
*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.
Approval by workers' representatives:
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).
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 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 –and the trade union by laws- will prevail over the present article in the case of preference to access employment vacancies or newly created posts.