Mexico: Government approves plan to increase accrued wages from 1 year and an interest of 2%, to 2 years and an interest of 4%

The Senate`s Labour and Social Welfare Commission approved the judgement for the amendment to article 48 of the Federal Labour Law.

Senator Napoleon Gomez Urrutia, a member of the “Morena” political party, proposed the judgment in order to increase accrued wages from 1 year and an interest of 2%, to 2 years of accrued wages and an interest of 4%. Napoleon explained that the proposal is necessary in order to establish that, in case of a dismissal without justified cause, the employee is protected with 100% of their salary during the first 24 months, rather than the 12 months currently foreseen in article 48.

In the given case wherein, after the first 24 months, the trial has not been concluded, or the Labour Board`s judgement has not been executed, the employer shall pay to the former employee the 4% interest on the basis of 15 months, until the payment is satisfied in full.