The Second Chamber of the Supreme Court of Justice deemed Constitutional the back pay cap of 12 months for labor claims.
This was made after reviewing two opposing resolutions issued by two different Circuit Courts, namely the resolutions issued by the 16th Labor Court of the First Circuit and the 1st Labor Court of the Nineteenth Circuit.
This resolution is aimed to avoid unjustified delaying or blocking of labor proceedings.
The ruling by the Supreme Court confirms the legality of the 2012 reform to Article 48 of Mexican Labor Law, in the sense that failure to provide hard evidence of the dismissal would entitle the plaintiff to back pay capped to 12 months starting from the date of the dismissal.
If the proceeding has not concluded or if the Labor Board ruling has not been complied with after the 12 month cap, an interest at a rate of 2% will have to be paid considering 15 months of salary.
Mr. Jorge De Presno, Partner in charge of the Labor and Social Security Area, along with the associates of our practice group are available should you need further comment on the contents of this bulletin.
|Jorge De Presno
|Alvaro Gonzalez Schiaffino
Mexico City, January 26th, 2016.