How can you collect your severance payment in times of pandemic?

Note published in El Pulso Laboral, in the Mundo Laboral y RR,HH. [Labor Arena and HR] Section by Itzel Medina.
Read the note in its original source

Unfortunately, the COVID-19 pandemic has put Mexican companies in an extremely difficult position and several of them have been forced to reduce their workforces. However, this crisis does not mean that employers are exempted from their obligations when they fire an employee.

We spoke with Ricardo Martínez, PhD, founding partner of La Vega y Asociados, to delve into this topic.

The specialist acknowledges that the ideal scenario will always be for the severance payment to be made in a single payment; nevertheless, he also acknowledges that, given the health and financial situation that the country is going through, it is complicated for employers to make the settlement in this manner.

What can you do?

Ricardo Martínez, PhD, states that the severance payment can be made in installments, as long as “an agreement is filed before the Conciliation and Arbitration Board, with the objective of clearly defining the dates in which the severance payment will be made”, he adds.

“It is very important that a penalty be established; this penalty must be, as a minimum, the worker’s base salary for each day that the employer fails to comply with the agreed dates for payment”, he explains to El Pulso Laboral.

What happens if the employer fails to comply with the agreed dates?

In the opinion of the de La Vega y Asociados partner, it is essential to go to the Conciliation and Arbitration Board to ensure that the process is properly documented and, in the event of noncompliance by the employer, “the penalty can be imposed”, he specifies.

The Doctor of Law also reiterates that, in case of termination, “three months of the integrated salary, 20 days of the integrated salary for each year and the seniority bonus” must be paid.