On July 31, 2024, Senator Roberto Juan Moya Clemente of the National Action Party introduced a legislative initiative to amend the second and third paragraphs of Article 48 of the Federal Labor Law. This proposal seeks to extend the accumulation period of back wages from 12 to 18 months in cases of unjustified dismissal, where the employer uses deliberate legal tactics to delay the process.
Potential Impact on Employers and Employees
The proposed amendment underscores the need for a fair and efficient labor dispute resolution process. Under current law, back wages are capped at 12 months. However, if it is determined that an employer, through their representatives or attorneys, is using practices such as bribing officials, altering documents, or presenting false statements to delay proceedings, the accumulation of back wages could extend up to 18 months.
Key Changes
- Extension of Back Wages: Increase from 12 to 18 months if the employer engages in obstructive behaviors outlined in Article 48 Bis.
- Interest Accrual: Interest on 15 months’ worth of wages would still apply if the case extends beyond the stipulated period.
This reform aims to deter employers from using stalling tactics and ensure that workers receive fair compensation without undue delays.
For more information and personalized legal guidance, please contact our team at VGA.
