Labor – January 30th 2017
On January 20th 2017, the Second Chamber of Mexico’s Supreme Court (“SCJN”) issued a binding court precedent, where it determined that employers and employees can choose whether they attend the Conciliation and Arbitration Labor Board (the “Board”) in order to ratify the employment termination agreement.
In addition, the SCJN ruled that if such agreement is not ratified before the Board, this does not imply that it will lose its validity.
The latter does not affect the employees’ right to appeal such termination agreement through the corresponding labor trial.
On such terms, it is still advisable that every employment termination agreement executed between employers and employees is filed before the Board for its ratification and approval.
Mexico City, January 30, 2017.