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ARTICLE · 05 AUGUST 2004

Employment Termination in Mexico, a Trap For The Unwary?

Mexican Federal Labor Law regarding employment termination.

MexicoStrategy

By David Puente-Tostado and Alfonso Gonzalez-Uribe1

Just a regular day at a Mexican subsidiary of a foreign company, Mr. X, the recently appointed General Director receives the visit of the Operations Manager: "Good morning Mr. X, here it is the report you requested yesterday." Mr. X, is a non-Mexican executive and just took one of the most difficult decisions of his life, moving to the company’s Mexican facility in order to increase his opportunities of advancing some steps in the company’s corporate ladder.. Mr. X, annoyed, looks through the document and says: "Jose, this is not the way we would expect to receive this type of reports in our country, please do it again". Jose, astonished, heads for the door, but just as he was about to cross it, turns around and asks: "Is this not the information you requested? It might not be prepared the way you wanted it, but it contains all the information and data." Mr. X immediately replies: "Are you questioning my orders? Because I

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