New to HR? Templates, tools and development to make you a seasoned pro in no time.
Shawn Premer shows how doing the right thing for employees leads to positive business results.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
On Jan. 20, 2016, Mexico's Supreme Court affirmed the constitutionality of the Federal Labor Law (FLL) provision allowing back wages to be capped at 12 months' compensatory damages in all employment-related lawsuits commenced after Dec. 1, 2012.
In December 2012, the FLL was amended, in part, to place a limit on the accrual of back wages to 12 months. For years, the unlimited accumulation of back wages had served as an incentive for plaintiffs to prolong trials. With no comparable tools by which to compel plaintiffs to prosecute their claims in an expedient manner, most companies – especially small and medium-sized businesses – felt compelled to settle their disputes even at unreasonably high amounts, or risk massive economic liabilities if plaintiffs prevailed at trial.
Paragraphs 2 and 3 of Article 48 of the FLL, which were enacted as part of the reform to the FLL in 2012, effectively place a limit on the accrual of back wages. Once the 12-month period has concluded, a monthly interest rate of 2 percent is generated on 15 months of the employee’s monthly wage, to be paid once the litigation process has concluded. Additionally, the accrual of back wages is suspended if the worker dies during the litigation process.
These provisions, which to a degree leveled the playing field for the parties, were the subject of multiple constitutional challenges at the state level, which created conflicting jurisprudence at the circuit level. With the Jan. 20, 2016 decision, the Supreme Court upheld the constitutionality of the cap on back wages, holding that it does not violate the principle of progressive contribution required under Article 1 of the Constitution, nor does it violate human rights. The Supreme Court’s decision is binding on all state and federal courts of the nation.
Mónica Schiaffino is a shareholder in the Mexico City office of Littler. Rogelio Alanis Robles is an associate in the firm’s Monterrey, Mexico office. Republished with permission. © Littler. All rights reserved.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Talent Attraction Study: What Matters to the Modern Candidate
Join SHRM's exclusive peer-to-peer social network
SHRM’s HR Vendor Directory contains over 3,200 companies