How Long Can Former Employees Sue After Termination in Mexico?
Why Timing Matters More Than Most Employers Think
In Mexico, termination does not automatically close legal exposure. Former employees retain the right to file labor claims for a limited but strictly protected period.
Many employers assume that if time passes without action, the risk disappears. In reality, limitation periods in Mexican labor law are short, technical, and often misunderstood — and missing them can determine the outcome of a case.
The General Rule: Statute of Limitations
Mexican labor law establishes specific time limits (prescription periods) for employees to file claims after termination.
These periods depend on the type of claim, not simply the fact of dismissal.
Two-Month Deadline for Termination Claims
Unjustified Dismissal
Former employees generally have two months from the date of termination to file a claim challenging the dismissal.
This applies to claims seeking:
- Reinstatement
- Severance pay
- Back wages
If the claim is not filed within this period, the right to challenge the dismissal expires.
What Counts as “Termination Date”
Courts consider:
- The last day of work
- The date access was revoked
- The moment the employee was effectively separated
Ambiguity often benefits the employee.
One-Year Deadline for Payment-Related Claims
Wages and Benefits
Claims related to unpaid:
- Wages
- Overtime
- Vacation pay
- Holiday premiums
generally prescribe after one year.
Each unpaid obligation may have its own limitation period.
Continuous Violations
If underpayment occurred repeatedly, courts may calculate the period separately for each payment.
Two-Year Deadline for Workplace Injury Claims
Claims related to:
- Occupational injuries
- Work-related illness
- Disability benefits
may be filed within two years from the date the condition is identified.
Why Limitation Periods Are Often Suspended
Conciliation Pauses the Clock
When a former employee initiates mandatory conciliation proceedings, the limitation period is suspended.
This means time stops running until the conciliation process ends.
🔗 Internal link: /labor-conciliation-in-mexico-what-employers-should-expect
Employer Actions Can Extend Exposure
If an employer:
- Continues partial payments
- Negotiates informally
- Requests post-termination services
courts may interpret this as acknowledgment of the relationship, affecting limitation calculations.
Common Employer Mistakes About Deadlines
- Assuming silence equals waiver
- Miscalculating the termination date
- Ignoring conciliation timelines
- Believing settlement discussions close the case
None of these automatically end liability.
Why Former Employees Often Win on Timing
Labor courts interpret limitation rules in favor of workers when doubt exists.
Employers bear the burden of proving that a claim is time-barred.
How Employers Can Protect Themselves
Document Termination Clearly
Termination dates must be:
- Clear
- Provable
- Consistent across systems
Formalize Settlements Correctly
Only settlements ratified before labor authorities effectively close claims.
🔗 Internal link: /labor-settlements-in-mexico-what-makes-them-legally-binding
Avoid Informal Post-Termination Contact
Continued engagement may reopen exposure.
What Happens If a Claim Is Filed Late
If a court confirms prescription:
- The claim is dismissed
- No severance or damages are awarded
However, the employer must prove the deadline was missed.
Conclusion
In Mexico, former employees have limited but powerful windows to file labor claims after termination.
Understanding how long employees can sue — and how those periods are calculated, suspended, or extended — is critical for managing post-termination risk. Clear documentation and proper closure are the most effective defenses.
