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Valid reasons to termination the employment relationship in Mexico is;
In Mexico you cannot terminate an employment relationship based on the gender, age, sexual orientation, or religious affiliation of the individual. The Mexican Federal Labor Law protects the rights of the employees from such discrimination.
An employer who dismisses an employee has to give written notice stating clearly the reason from termination. The dismissal notice must include the date/dates that misconduct occurred.
The notice needs to be personally delivered to the employee or delivered to competent authority within five business days. Failure to give personal notice to the employee can be considered unjustified termination.
Employees in Mexico must inform the employer in writing of their resignation in which they state the reason for their resignation and the date on which they will resign.
Employees in Mexico do not need to give a minimum notice period; however two weeks’ notice is customary.
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It can be difficult to terminate employment in Mexico without just cause. However, if the employee is not producing the work, you need done or if they are causing significant issues in the workplace then there are legal rights for employers to terminate employment with just cause.
In sum, the Mexican Federal Labor Law does a good job in protecting both employees and employers to ensure the employment relations is fair. You will need proof with proper reason to terminate employment.
If you wrongfully terminate employment in Mexico your company could face heavy fines from the Mexican authorities. It is possible to pay fines to the employee of 100 to 1,000 times the amount of the Unidad de Medida y Actualización.
