The limit on back wages contemplated by the 2012 Federal Labor Law is amended.
February 3, 2016. Dear clients and friends, On January 20 of this year, the Supreme Court of Justice of the Nation ruled on the constitutionality of Article 48 of the Federal Labor Law in relation to the limitation of back wages to a period of 12 months counted from the date of a worker's dismissal, in accordance with the amendments made to the Law in 2012. Previously, in labor proceedings there was no limit on the accrual of back wages; that is, they accrued until the date on which the award that might be rendered was complied with. As a result of the 2012 reform, back wages are limited to a period of up to 12 months from the date of a worker's unjustified dismissal, and in the event that the proceeding continues after that time, interest will begin to accrue on the amount of 15 months of salary, at a rate of 2% per month, capitalizable at the time of payment. As a result of a conflict of precedents, the Second Chamber of the Supreme Court of Justice of the Nation held that Article 48 does not violate the principle of progressivity provided for in Article 1 of the Constitution, since it does not disregard the human rights of workers, insofar as the action for unjustified dismissal continues to be protected under labor law, through reinstatement or indemnification in the amount of 3 months, at the worker's choice, and it also continues to provide for the payment of back wages, but now limited to a maximum period of 12 months and to the payment of interest under the terms specified. Click here to download the note in PDF format. For additional information, please contact our experts: Javier Lizardi, Partner: +52 (55) 5258-1021, jlizardi@vwys.com.mx Rodolfo Trampe, Partner: +52 (55) 5258-1054, rtrampe@vwys.com.mx Fernando de Buen, Associate: +52 (55) 5258-1016, fdebuen@vwys.com.mx Alix Trimmer, Associate: +52 (55) 5258-1016, atrimmer@vwys.com.mx
PDF
