On January 20, 2017, the Second Chamber of the Supreme Court of Justice of the Nation (“SCJN”) published binding case law holding that both the employee and the employer may choose to appear before the Conciliation and Arbitration Board (“JCA”) to ratify the agreement terminating the employment relationship.

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.