Agreement to terminate the employment relationship by mutual agreement

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Agreement to terminate the employment relationship by mutual agreement

September 7, 2021
Francisco Trejo Gutiérrez

Did you know that if the employer and the employee enter into an agreement to terminate the employment relationship by mutual agreement, they are not obliged to ratify it before the JCA?

Now that, due to the COVID-19 pandemic, it is more difficult to go to the Labor Courts, a Jurisprudence published in the Federal Judicial Gazette on January 20, 2017 becomes relevant. This Jurisprudence establishes that, if the employer and the employee settle to terminate the employment relationship between them through an agreement, for purposes of its validity they are not obliged to go to the competent Conciliation and Arbitration Board (JCA) to ratify it.

Due to an integral interpretation of labor provisions regarding the labor relationship termination agreements, the ratification of the latter is an optional act. Without the above-mentioned implying that the employee loses the opportunity to promote the annulment action, through the processing of a labor lawsuit.

It should be noted that the legal system supports an incentive structure to motivate the employer and the employee to come before the Board to ratify the agreement. However, this situation should not be understood as an obligation that makes the termination of the employment relationship more onerous for the parties.

At Trejo Gutiérrez Abogados, we have a group of experts in labor matters with more than 20 years in the market. Please do not hesitate to contact us, we will be glad to provide the personalized legal advice that you require.