PROPOSAL TO AMEND ARTICLE 50 OF THE FEDERAL LABOR LAW

A new proposal is being generated in the Chamber of Deputies, which has employers worried, since it intends to reform Article 50 of the Federal Labor Law, aiming to increase the indemnity for unjustified dismissal from 20 days per year to 90 days per year.

If such reform is approved, it may considerably affect the business sector, mainly small and medium-sized companies, which do not produce enough capital for high labor lawsuits and even more with this type of indemnifications that are intended to be paid, remembering that the burden of proof is on the employer and most of the time there are no elements necessary to disprove the claim of unjustified dismissal in a labor lawsuit.

The initiative was proposed by Congressman Napoleon Gomez Urrutia, who is part of the Morena political party, this change aims to recognize the value of the time invested by the worker in the company and protect him/her economically in his/her transition to a new job. (Worky blog)

Currently, Article 50 of the Federal Labor Law states the following:

"Article 50. The indemnities referred to in the preceding article shall consist of:

1. If the employment relationship is for a fixed term of less than one year, in an amount equal to the amount of the salaries of half of the time of services rendered; if it exceeds one year, in an amount equal to the amount of the salaries of six months for the first year and twenty days for each of the following years in which he has rendered his services;
2. If the employment relationship is for an indefinite period of time, the indemnity shall consist of twenty days of salary for each of the years of services rendered; Section amended DOF 24-12-2024

• In addition to the indemnities referred to in the preceding sections, in the amount of three months' salary and the payment of overdue salaries and interest, if any, under the terms set forth in Article 48 of this Law, and Section amended DOF 30-11-2012, 24-12-2024

1. For employees of digital platforms, the indemnity will consist of three months' salary.

Additionally, twenty days of salary will be paid for each of the years of service rendered, taking into account the time actually worked, as established in Article 291-D of the same law, and the overdue salaries and interest, if any, in the terms set forth in Article 48 of this Law."

The concept of section II of said article would change to 90 days of salary for one year worked for those who have contracts for an indefinite period of time, article 51 of the same labor law must be translated for a better understanding:

"Article 51These are causes for termination of the employment relationship, without liability for the employee:

1. The employer or, as the case may be, the employer's group when proposing the work, deceived him/her with respect to the conditions thereof. This cause of termination will cease to have effect after thirty days of rendering services to the worker; FEDERAL LABOR LAW CHAMBER OF DEPUTES OF THE H. CONGRESS OF THE UNION General Secretariat Secretariat Secretariat of Parliamentary Services Last Reform DOF 21-02-2025 20 of 450
2. Incur the employer, his relatives or any of his representatives, within the service, in breaches of probity or honesty, acts of violence, threats, insults, harassment and/or sexual harassment, bad treatment or other similar, against the employee, spouse, parents, children or siblings; Fraction amended DOF 30-11-2012

• Incurring the employer, his relatives or workers, outside the service, in the acts referred to in the preceding section, if they are so serious that they make it impossible to comply with the employment relationship;

1. Reduce the employer's salary of the worker;
2. Failure to receive the corresponding salary on the agreed or customary date or at the agreed or customary place;
3. Suffer damages caused maliciously by the employer, in his tools or work tools;

• The existence of a serious danger to the safety or health of the worker or his family, either because the establishment lacks hygienic conditions or because the preventive and safety measures established by law are not complied with;
• The employer, by his inexcusable imprudence or carelessness, compromises the safety of the establishment or of the persons therein; and

1. To demand the performance of acts, conducts or behaviors that undermine or violate the worker's dignity; and Fraction added DOF 30-11-2012
2. Those analogous to those established in the previous fractions, equally serious and of similar consequences, as far as work is concerned."

Workers shall receive payment of the proportional parts of:

• Vacation and vacation bonus.
• Seniority premium (provided that the employee has at least 15 years of seniority).
• Benefits in force in your employment contract or in the labor conditions that regulate your relationship with the company or employer.

In the event that the employment relationship is terminated due to a dismissalIn the case of the above mentioned items, the workers must claim the payment of the following items:

• Constitutional indemnification.
• Seniority premium.
• Proportional parts of Christmas bonus; vacation and vacation premiums and benefits not yet paid (El Heraldo)

In labor lawsuits, if the worker brings a constitutional indemnity action, and one of the ancillary benefits claimed is the payment of 20 days per year worked, which is what the labor law currently establishes, the employer would have to pay what is condemned, speaking of the indemnity (03 three days of salary), the 20 days per year and back wages (cap of 12 months of salary), so as not to complicate matters by including the other benefits that are demanded, and let us assume that the worker had a daily salary of $500.00 (Five hundred pesos 00/100 MN), and has worked for 5 years, the calculation would be as follows:

If the reform of 90 days per year worked is approved, it would be as follows:

Comparing both tables is $175,000.00 (One hundred seventy-five thousand pesos 00/100 MN) more; the convicted employer has to pay the worker, of course, even if there is a judgment, the parties can reach an agreement on the amounts.

Now, let us suppose that the worker claims the reinstatement, with the same salary and time, where within the trial a condemnatory sentence is reached, where the employer has to reinstate the worker in the same conditions that he had been performing or improvements in the same, but the employer can refuse to reinstate him, but for that he would have to pay the constitutional indemnity of 03 months, the 20 days per year, seniority premium (12 days per year) and the fallen wages, remember that we are not lying to other benefits so as not to be unruly, but we know that there are at least the law, so our calculation would be as follows:

If the reform of 90 days per year worked is approved, it would be as follows:

Although it is true that it would be a good benefit to sue, it is somewhat risky, because we would be going back in time, remembering that the back wages were capped, because of the lawsuits that became millionaire, and with them they lead to the bankruptcy of individuals and companies with business activities, leaving the people who worked for that employer without work too, for no longer being sustainable for the company, affecting the entire social environment, we know that the higher the number of unemployment, the higher the number of delinquency.

References

 Federal Labor Law. Congress of the Union. Virtual Library. Revised April 15, 2025. https://www.diputados.gob.mx/LeyesBiblio/pdf/LFT.pdf

Worky Blog. Revised April 15, 2025. https://blog.worky.mx/indemnizacion-por-despido-el-cambio-que-podria-costarle-millones-a-las-empresas

The Herald. Revised April 16, 2025. https://heraldodemexico.com.mx/nacional/2025/4/10/proponen-aumentar-la-indemnizacion-90-dias-de-salario-por-cada-ano-laborado-por-despido-injustificado-690254.html