The implications of replacing employees with AI or new technologies

In recent months, the impact of artificial intelligence on society, especially in the realm of employment, has been a recurring topic of debate. Companies have engaged in this discussion, questioning how the implementation of this technology could affect their workforce. In other words, they have raised the viability of artificial intelligence replacing various job positions in different industrial sectors.

In this context, it is crucial to consider what labor legislation in Mexico stipulates regarding these scenarios. That is, if employees are replaced due to the introduction of machinery or new technologies, it is important to understand the obligations and rights that this situation grants both employers and employees.

Article 439 of the Federal Labor Law establishes specific provisions for cases of collective labor terminations resulting from personnel adjustments due to the implementation of machinery or new processes. Below are the main obligations of the Employer:

  • Termination Agreements: The employer must seek to enter into termination agreements with the affected employees. These agreements must establish the conditions under which the termination will take place and the amounts that employees will receive as part of this termination.
  • Prohibition of Waiving Rights: Termination agreements cannot contain any waiver of rights by the employees. This means that employees cannot be forced to waive any fundamental labor rights as a condition for receiving compensation.
  • Additional Compensation: In the event that no agreement is reached through termination agreements, the employer is obliged to pay each affected worker the following:
  1. Four months’ salary.
  2. The proportional share of the benefits to which they are entitled.
  3. Compensation is equivalent to 20 days of salary for each year worked.

It is important to note that the possibility of collectively negotiating labor terminations offers the opportunity to negotiate and reach mutually beneficial agreements. In this way, the employer avoids costly indemnification payments, and employees ensure a smooth and secure separation process.

In summary, labor legislation in Mexico establishes a legal framework to protect the rights of employees in the event of personnel adjustments due to the implementation of new technologies or machinery. However, it encourages negotiation and the possibility of reaching agreements between both parties to avoid costly litigation and ensure a trouble-free employment termination. It is recommended that companies seek specialized legal advice on labor matters to carry out these processes properly and comply with legal obligations. The labor team at Vega Guerrero & Asociados is available to provide guidance and assistance in these matters.

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