Short answer
When a former employee claims against your company, the first step is almost always a summons from a Conciliation Center. Attend: conciliation is mandatory before a lawsuit and it is the best chance to settle. If there is no agreement and the Labor Court serves the claim, the company has 15 days to answer with all its evidence (Federal Labor Law, LFT, art. 873-A). Do not ignore it.
Pre-trial conciliation
Since the 2019 labor reform (DOF May 1, 2019), a worker must first file a conciliation request with the Centro de Conciliación Laboral del Estado de Jalisco for local matters, or the Centro Federal de Conciliación y Registro Laboral for federal industries (LFT art. 684-E). The company receives a summons to a hearing. If a settlement is reached and performed, the matter ends.
Answering the lawsuit
If there is no settlement and the worker sues, the court serves the company with the claim and its evidence. Under LFT art. 873-A, the company has 15 days to answer in writing, offer evidence and, if applicable, counterclaim. If it does not answer on time, the worker's claims are deemed admitted (except those contrary to law) and the company loses the right to offer evidence.
What the employer must prove
On many points the law places the burden of proof on the employer, including start date, seniority, absences, cause of termination, working hours and salary paid (LFT art. 784). If the employer fails to produce documents it is legally required to keep, the worker's allegations are presumed true. Keep, for every employee:
- Employment contract and IMSS registration.
- Stamped payroll receipts (CFDI) and proof of payment.
- Attendance records.
- Proof of vacation, vacation premium and year-end bonus payments.
- The written dismissal notice and proof of delivery, or the signed resignation.
What the worker can claim
For unjustified dismissal, the worker may seek reinstatement or three months' salary as severance (LFT art. 48). If the employer does not prove the cause, back pay runs from dismissal for up to 12 months, with interest thereafter, plus seniority premium and outstanding benefits. In certain cases (for example, workers with less than one year of service or in positions of trust) the employer may be released from reinstatement by paying the indemnities of article 50 (art. 49).
| Deadline | Term | Source |
|---|---|---|
| Answer the lawsuit | 15 days from service | LFT 873-A |
| Deliver dismissal notice to the court | 5 business days | LFT 47 |
| Worker claims dismissal | 2 months, suspended during conciliation | LFT 518 |
| Employer dismisses for misconduct | 1 month from knowledge of the cause | LFT 517 |
Common mistakes
- Not attending the conciliation hearing.
- Denying the employment relationship when there is evidence of it.
- Relying on unsigned or unstamped payroll receipts.
- Agreeing a settlement without ratifying it before the authority.
- Asking workers to sign blank sheets.
Frequently asked questions
Is attending the conciliation hearing mandatory?
The company is summoned and should attend; failing to appear can lead to a fine and loses the chance to negotiate a settlement.
Can I dismiss without a written notice?
It is not advisable. Federal Labor Law art. 47 requires a written notice stating the conduct and dates, delivered at dismissal or to the Labor Court within five business days. Without it, the dismissal is presumed unjustified.
Is a settlement reached in conciliation binding?
Yes. A settlement signed before the Conciliation Center and complied with closes the matter.
How long does a worker have to claim unjustified dismissal?
Two months from the day after the dismissal (art. 518), suspended while conciliation is pending. Other labor claims generally prescribe in one year (art. 516).
Is my company liable for a contractor's employees?
In subcontracting of specialized services, the company that hires a contractor that fails its labor obligations is jointly liable for the workers used (art. 14).
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