Key Takeaways
Getting laid off is never easy. But in Mexico, the law makes sure you’re not left adrift. If your employer lets you go without a valid reason—say, during a round of downsizing—you’re entitled to far more than a token “month per year worked.” The law grants three full months of salary, a seniority premium for every year of service, and all unpaid benefits like vacation time or your Christmas bonus. And if your employer refuses to reinstate you after a legal process, you could receive 20 extra days of pay per year worked.
Story & Details
Imagine the moment: you’ve given years of steady work, and one morning you’re told the company has to “make cuts.” A friend might say, “Well, at least you’ll get one month’s pay for every year you were there.” It sounds fair enough—but Mexican law actually offers a wider safety net.
Under the Federal Labour Law (Ley Federal del Trabajo) and Article 123 of the Constitution, when someone is dismissed without cause, the company must compensate them properly. This isn’t charity; it’s the law recognizing your time, effort, and loyalty.
First comes the constitutional severance—three months of your full integrated salary, meaning not just your base pay but also any fixed allowances or regular bonuses. Then there’s the seniority premium, equal to twelve days of pay for each year of service. Even if your salary is high, the law caps the daily rate at twice the minimum wage so calculations stay balanced.
Beyond that, your employer must pay whatever benefits remain: unused vacation days, the vacation premium, and your aguinaldo (Christmas bonus). In some cases, if you take legal action seeking reinstatement and the company still refuses to bring you back, the law adds another layer—20 days of pay per year worked on top of everything else.
The myth of “one salary per year” misses most of these elements. The true system is broader, built to give you time to find your footing again.
Think of someone who worked five years at a steady company. Even with only the base entitlements—three months’ salary and five years of seniority premiums—the amount becomes significant. Add the leftover vacation and Christmas pay, and it’s clear the system is designed to soften the landing, not leave people stranded.
Conclusions
If you’re ever let go without cause in Mexico, you’re not powerless. The law stands behind you with clear numbers: three months of pay, twelve days per year worked, plus everything you’ve already earned but not received. In special cases, another 20 days per year can be added.
Before signing anything, it’s wise to visit the Procuraduría Federal de la Defensa del Trabajo—a public office that offers free legal advice and helps workers confirm the exact severance they’re owed. It’s quick. It’s secure. And it ensures your years of effort are respected.
Sources
- Government of Mexico – “Despidos injustificados.” https://www.gob.mx/conampros/articulos/despidos-injustificados
- Justia México – “Preguntas y respuestas sobre el despido injustificado.” https://mexico.justia.com/derecho-laboral/despido-injustificado/preguntas-y-respuestas-sobre-el-despido-injustificado/
- Conceptos Jurídicos – “Indemnización por despido injustificado: ¿cómo se calcula?” https://www.conceptosjuridicos.com/mx/indemnizacion-por-despido/
- YouTube – “90-12-20 explicado fácil: Indemnización por despido en México.” https://www.youtube.com/watch?v=SuvZ0iGX3CY
Appendix
Seniority Premium (Prima de Antigüedad)
A payment that recognizes loyalty—twelve days of salary for each year you’ve worked. It applies when employment ends, offering stability for long-term workers.
Constitutional Severance (Indemnización Constitucional)
Three months of full salary guaranteed by the Mexican Constitution. It’s the foundation of every severance payment for unjustified dismissal.
(Based on information verified in October 2025, Europe/Amsterdam time. Original insights translated from Spanish.)
My Diary - Leonardo Cardillo 