Were you unfairly dismissed or not paid what you are owed? The 2019 labor reform changed the system: first mandatory conciliation, then a trial before the new Labor Courts. Here is how the process works.
If you were dismissed without cause, were not paid your benefits, or suffered abuse at work, the Federal Labor Law (Ley Federal del Trabajo, LFT) protects you. Since the 2019 labor reform, the way to file a claim changed completely: the old Conciliation and Arbitration Boards were abolished, and now you must first attempt mandatory conciliation and, if no agreement is reached, sue before the new Labor Courts (Tribunales Laborales) of the Judicial Branch.
What changed with the 2019 reform
The reform created a two-stage model. The first is a mandatory pre-trial conciliation stage before the Conciliation Centers (the Federal Center for Labor Conciliation and Registration and the local centers). Only if that conciliation fails—or if the case is one of the exceptions, such as discrimination or child labor—can you go to trial before a Labor Court, now with judges of the Judicial Branch and oral proceedings.
Mind the deadline: the statute of limitations
Time runs against you. In dismissal cases, the LFT provides a very short deadline—two months from the separation—to claim reinstatement or severance. For other benefits, the general period is one year. That is why, if you were dismissed, you should act immediately and not let the weeks slip by.
Step by step to file a claim
- 1. Gather evidence. Keep your contract, payroll receipts, ID badge, messages, witnesses, and any document that proves the employment relationship, your salary, and your seniority.
- 2. Request conciliation. File your request with the corresponding Conciliation Center. The employer is summoned to a hearing to seek an agreement.
- 3. Conciliation hearing. If there is an agreement, a settlement is signed with the force of res judicata (it is enforceable like a judgment). If there is no agreement, the Center issues the certificate of non-conciliation.
- 4. Lawsuit before the Labor Court. With the certificate, the lawsuit is filed. The trial is oral: there are hearings, the offering and taking of evidence, and finally a judgment.
- 5. Enforcement. If you win, the court orders compliance (reinstatement or payment).
What you can claim
In the case of an unjustified dismissal, the law lets you choose between reinstatement or constitutional severance of three months' salary. Depending on the case, the following are usually added:
- Back wages under the applicable rules.
- Seniority premium (twelve days' salary per year, subject to a cap).
- Proportional year-end bonus (aguinaldo) (a minimum of 15 days per year).
- Pending vacation and vacation premium.
- Proportional shares of the accrued benefits.
If the separation was voluntary or justified, we speak of a final settlement (finiquito); if it was an unjustified dismissal, of a severance package (liquidación), which is larger.
Documents you will need
- Individual employment contract (or evidence of the relationship if you did not sign one).
- Payroll receipts or proof of payment.
- Official ID.
- Any evidence of the dismissal and of the date it occurred.
Timeframes and costs
The conciliation stage aims to be resolved within a short period (weeks). A trial before the Labor Court can take several months. PROFEDET (the Office of the Attorney for the Defense of Labor) offers free advice and representation to workers—a valuable option if you cannot afford a private lawyer.
Common mistakes
- Letting the two-month deadline lapse after the dismissal.
- Signing a settlement or "resignation" under pressure on the day of dismissal without reviewing it.
- Not keeping evidence of the employment relationship and of the real salary.
- Accepting "off-the-books" payments without a settlement before the Conciliation Center, which do not carry the same legal force.
Resignation or dismissal: the burden of proof
A central point in labor trials is who must prove what. In general terms, it is up to the employer to prove facts such as the hire date, the salary, and the seniority and, where relevant, that the dismissal was justified. That is why many companies ask you to sign a "resignation": if you prove that there was in fact a dismissal and not a voluntary resignation, your claim is strengthened. Never sign blank documents or documents you have not read.
How your severance is calculated
To calculate what you are owed, the starting point is the integrated daily wage, which adds the benefits (year-end bonus, vacation premium, and any others you receive) to the salary. On that basis, the severance, the seniority premium, and the proportional shares are calculated. A frequent mistake is to calculate everything on the "take-home" salary rather than on the integrated wage, which unfairly reduces the amount of the severance.
Frequently asked questions
Do I have to go to conciliation first?
Yes, except in certain cases (such as discrimination or child labor). Pre-trial conciliation before the Conciliation Center is mandatory before suing in the Labor Court.
Can I file a claim if I have no money for a lawyer?
Yes. PROFEDET provides free advice and representation to workers, both in the conciliation stage and at trial.
Conclusion
The new labor system favors quick conciliation, but it requires acting promptly because of the short limitation periods. Gather your evidence, do not sign under pressure, and seek guidance as soon as possible. You can turn to PROFEDET free of charge or consult a labor lawyer holding a cédula profesional (professional license) to correctly calculate your severance and defend your rights.
Notice: This content is general legal information and does not constitute legal advice, nor does it replace consulting a lawyer holding a cédula profesional. Every case is different and laws change; before making decisions, consult a lawyer who can review your particular situation.