Termination and notice in Mexico

At a glance

Key figures with the official source for each, checked November 2026.

Probation and initial training periods

Article 39-A of the Ley Federal del Trabajo allows a probation period inside an indefinite contract. The limit is 30 days, or up to 180 days for management, administration and specialised technical or professional roles. Article 39-B separately allows an initial training relationship of up to 3 months, or up to 6 months for the same senior categories.

• The period must be written into the contract. Article 25 requires the contract to state whether probation applies.
• It cannot be extended or repeated (Art. 39-D).
• The employee is on payroll with full social security from day one.
• If the employer ends the relationship at the close of probation because the person does not meet the requirements, it takes into account the opinion of the joint productivity and training committee. No severance liability arises in that case.
• If work continues past the end date, the relationship is indefinite and the probation time counts toward seniority (Art. 39-E).

Foreign employers often assume a 90 day probation is available for every hire. It is not. For a standard individual contributor, the window to end the relationship without severance is 30 days.

Just cause under Article 47

An employer can end employment without severance only by rescinding for one of the causes in Article 47. The article has 16 grounds. They include:

• Dishonesty, violence, threats or serious mistreatment toward the employer, colleagues or clients.
• Intentional or grossly negligent damage to equipment or premises.
• Disclosure of trade secrets.
• More than three absences in a 30 day period without permission or a justified reason.
• Refusal to follow work instructions without good reason.
• Attending work intoxicated.
• False certificates or references at hiring, but only if acted on within the first 30 days of service.

Poor performance, a reorganisation, loss of a client or a change of strategy are not on the list. Those exits are treated as dismissal without cause and priced with severance.

Timing matters. Under Article 517 the employer's right to dismiss for a given cause lapses one month after it learns of it. Evidence matters too. If the worker claims, the employer has to prove both the conduct and that it followed the notice procedure. Attendance records, written warnings and signed minutes are the usual proof.

The dismissal procedure step by step

The procedure for a for-cause dismissal is short but strict.

• Write the notice. The final paragraphs of Article 47 require a written notice that clearly states the conduct relied on and the date or dates it occurred.
• Deliver it. The notice is handed to the worker personally at the moment of dismissal. If that is not possible, the employer informs the labor Tribunal within 5 business days so that the Tribunal can notify the worker.
• Pay the finiquito. Accrued salary, prorated aguinaldo, unused vacation and vacation premium are owed whatever the reason for the exit.

If the notice is not given, the law presumes that the separation was unjustified, unless the employer proves otherwise. In practice that is a hard position to recover from.

A dismissed worker has two months to act (Art. 518). The first step is a request to the conciliation centre. The hearing is set within 15 days, and the whole stage may not exceed 45 calendar days. An employer that does not attend is fined 50 to 100 UMA and is treated as unwilling to settle. If no agreement is reached, the centre issues a certificate and the worker can file with the labor Tribunal.

What dismissal without cause costs

A worker dismissed without just cause may ask for reinstatement or for the indemnity of three months of salary (Art. 48). Article 49 lets the employer refuse reinstatement for staff with under one year of service and for employees in positions of trust, among others, by paying the Article 50 amounts. In negotiated exits employers normally budget all of the items below.

Article 89 sets the base as the daily salary including the proportional share of benefits, so indemnities are calculated on an integrated figure. Example: four years of service on an integrated daily salary of MXN 2,100. Three months is MXN 189,000. Twenty days per year is MXN 168,000. The seniority premium is 48 days at the capped MXN 630.08, which is MXN 30,243.84. The total is about MXN 387,000 before the finiquito.

If the case goes to the Tribunal and the employer loses, back pay of up to 12 months is added, followed by 2% monthly interest on 15 months of salary.

Mutual termination agreements

Mutual consent is a lawful way to end employment under Article 53 of the LFT, and it is how most professional exits are closed. The legal detail that makes it work is Article 33.

• A waiver of accrued salary or indemnities is void, whatever it is called.
• A settlement must be in writing, set out the facts and the rights it covers, and be ratified before a conciliation centre or the labor Tribunal.
• An agreement signed in the conciliation procedure has the force of a final judgment (Art. 684-E) and can be enforced directly.

A private release signed in the office and never ratified gives much weaker protection. The worker can still claim within the limitation period.

A voluntary resignation is also valid, and no severance is due beyond the finiquito. The seniority premium is owed on resignation only after 15 years of service (Art. 162). A resignation letter obtained under pressure is a frequent source of claims, so employers usually ratify the exit even when the employee resigns.

There is no formula for a settlement amount. The statutory severance set out above is the reference point for negotiation.

Protected employees and common mistakes

Some situations carry extra protection or a faster route to court.

• Pregnancy and family care. Article 133 forbids dismissing a worker, or pressuring her to resign, because of pregnancy, a change in marital status or the care of young children. A mother may return to her post within one year of the birth (Art. 170).
• Discrimination and harassment. Claims on these grounds, and claims on freedom of association, can skip conciliation and go straight to the Tribunal (Art. 685 Ter).
• Leave and incapacity. Illness certified by the IMSS suspends the relationship. It is not a ground for dismissal.

Mistakes foreign employers make most often:

• Giving notice or pay in lieu and treating that as full settlement.
• Dismissing for performance without an Article 47 cause.
• Acting more than a month after discovering misconduct.
• Skipping the written notice, or writing it without dates and facts.
• Calculating severance on base pay and leaving out the integrated benefits.
• Closing the exit with an unratified release.
• Ending a contractor who worked like an employee and assuming no severance applies.

Under an EOR arrangement the EOR is the legal employer and runs this procedure. The client's instructions and evidence still decide the outcome.

Frequently asked questions

More on hiring in Mexico

Employer of record and hiring guide for Mexico · Payroll and taxes · Benefits and leave · Contractors vs employees · Cost calculator · EOR vs PEO vs entity

Sources

• Ley Federal del Trabajo (Cámara de Diputados, last reform DOF 14-05-2026)
• Cámara de Diputados, list of LFT reform decrees
• INEGI, UMA 2026 press release (value used for fines)
• IDC Online, 2026 minimum wages (secondary)

This page is general information, not legal, tax or immigration advice. Rates, thresholds and procedures change, and how they apply depends on the facts. Confirm current figures with a qualified adviser or with Dryft before acting. Checked November 2026.