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Labor disputes in Mexico: mandatory conciliation within 45 days, labor courts in the judiciary, settlements, burden of proof and time limits

Last verified: 2026-10-26 · Status: Stable

Since the 2017 constitutional and 2019 statutory reforms, labor disputes are decided by labor courts of the federal and state judiciaries, and before suing, workers and employers must first go to a conciliation center: the federal CFCRL or the state center. Conciliation is free, must end within 45 calendar days, starts with a hearing within 15 days, and an employer that fails to attend is fined 50 to 100 UMA and treated as rejecting any settlement; settlements signed there are ratified on the spot. Some claims, such as discrimination, harassment, social security benefits and union rights, go straight to court, and the employer bears the burden of proof on most employment facts, including hire date, salary, hours up to nine hours of overtime a week and the cause of dismissal.

USD conversions use MXN 18.5026 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 16 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Conversions are for orientation only.

Key facts

Maximum length of mandatory prejudicial conciliation	45 calendar daysLFT art. 684-D, as of 2026-10-26 · in force
Conciliation hearing set within	15 daysLFT art. 684-E, section IV, as of 2026-10-26 · in force
Fine on an employer that does not attend conciliation	50 to 100 UMALFT art. 684-E, section IV, as of 2026-10-26 · in force
General limitation period for labor claims	1 yearLFT art. 516, as of 2026-10-26 · in force
Limitation period for dismissed workers' claims	2 monthsLFT art. 518, as of 2026-10-26 · in force

The rule

1. Labor courts and conciliation centers. Disputes between workers and employers are resolved by labor courts of the federal judiciary or of the states, whose judges must have labor experience. Before going to court, workers and employers must attend the conciliation stage: at state level before autonomous local Conciliation Centers, and at federal level before the Federal Center for Conciliation and Labor Registration (CFCRL). Conciliation consists of a single mandatory hearing, with further hearings only by agreement.Constitución Política de los Estados Unidos Mexicanos (CPEUM) (Chamber of Deputies consolidated text, last reform DOF 7 October 2026), Art. 123, section A, XX, 2017-02-24 official text · verified 2026-10-26

2. Conciliation procedure. The request may be filed in person, in writing or electronically, with the requester's identity, the party to be summoned, its address and the purpose. The center sets a hearing within 15 days and notifies the employer personally at least five days before, warning that if it does not appear through a representative with sufficient authority it will be fined 50 to 100 UMA and deemed to reject any settlement. If both parties come together, the hearing is held within five days, or immediately. The center proposes a settlement; if accepted it is signed and ratified at the hearing, otherwise a certificate of exhausted conciliation is issued. The whole procedure may not exceed 45 calendar days, and the center gives free legal advice. What the parties say in conciliation cannot be used as evidence.
Cost to do it: Conciliation is free; not attending costs a fine of MXN 5,865.50 to MXN 11,731.00 at the 2026 UMA of MXN 117.31.
Example: MXN 5,865.50 to MXN 11,731.00. / About USD 317 to USD 634.Decree reforming the LFT on labor justice, union freedom and collective bargaining, DOF 1 May 2019; Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), LFT arts. 684-B, 684-C, 684-D and 684-E, 2019-05-01 official text · verified 2026-10-26

3. Exceptions to conciliation. Claims may go directly to court when they concern discrimination in employment for pregnancy, sex, sexual orientation, race, religion, ethnic origin or social status, or sexual harassment; designation of beneficiaries on death; social security benefits for work risks, maternity, illness, disability, life, day care and work accidents; protection of fundamental labor rights such as freedom of association and collective bargaining, trafficking, forced labor and child labor; disputes over who holds a collective agreement; and challenges to union bylaws.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Art. 685 Ter, 2019-05-01 official text · verified 2026-10-26

4. Settlements. Any waiver by workers of earned wages, compensation or benefits is void. A settlement or termination agreement must be in writing, describe the facts and the rights it covers, and be ratified before the Conciliation Center or the court, which approves it if it contains no waiver of rights; an agreement made without the authorities can be challenged, but only the clauses waiving rights are void.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Art. 33, 2019-05-01 official text · verified 2026-10-26

5. Burden of proof. The court relieves the worker of the burden of proof where the facts can be established otherwise, and may order the employer to produce the documents it must keep, presuming the worker's allegations true if it does not. In any case the employer must prove: the hire date; seniority; absences; the cause of rescission; the end of a fixed term or job contract; the written notice of dismissal; the employment contract; ordinary hours and overtime up to nine hours a week; payment of rest days, holidays and aguinaldo; vacations; Sunday, vacation and seniority premiums; the amount and payment of salary; profit sharing; and registration and contributions to IMSS, INFONAVIT and the retirement system. A flat denial of the dismissal does not shift the burden.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Art. 784, 2019-05-01 official text · verified 2026-10-26

6. Back wages and delay. If the employer does not prove the cause of dismissal, it pays back wages for up to 12 months and then 2 percent monthly interest on 15 months of salary until payment. Lawyers who file manifestly groundless actions to delay a case are fined 100 to 1,000 UMA.
Example: For a worker on MXN 20,000 a month, a lost case that lasts 18 months costs 12 months of back wages (MXN 240,000) plus six months of interest at 2 percent a month on 15 months of salary (MXN 36,000), on top of the compensation. / About USD 12,971 plus USD 1,946 at 18.5026.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Art. 48, 2019-05-01 official text · verified 2026-10-26

7. Time limits. Labor claims generally expire one year after the obligation becomes enforceable. The employer's actions to dismiss or discipline expire one month after it learns of the cause; a worker's action to leave for the employer's fault in one month; a dismissed worker's claims in two months from the day after dismissal, suspended from the filing of the conciliation request until the conciliation ends; claims for work risk compensation and to enforce judgments or settlements in two years.Ley Federal del Trabajo (LFT), DOF 1 April 1970 (Chamber of Deputies consolidated text, last reform DOF 14 May 2026), Arts. 516, 517, 518 and 519, 2019-05-01 official text · verified 2026-10-26

Action	Limit	Runs from
General labor claims	1 year	Day after the obligation becomes enforceable
Employer dismissal or discipline	1 month	Day after the employer learns of the cause
Worker leaving for employer's fault	1 month	Date the worker learns of the cause
Dismissed worker's claims	2 months	Day after dismissal (suspended during conciliation)
Work risk compensation; enforcement of judgments and settlements	2 years	Determination of incapacity; death; notice of judgment or approval of settlement

Time limits for labor actions (LFT arts. 516 to 519).

Worked example

A sales employee on MXN 20,000 a month (about USD 1,081) is dismissed and files a conciliation request at the state Conciliation Center 20 days later; the two month limit is suspended from that filing.
The center sets a hearing within 15 days and notifies the company at least five days ahead. The company sends a representative with a power of attorney; not attending would cost MXN 5,865.50 to MXN 11,731.00 and end conciliation.
The parties agree on three months of salary plus accrued benefits, sign the agreement and ratify it at the hearing, which closes the matter.
Had they not agreed, the employee would receive a certificate of exhausted conciliation and could sue in the labor court, where the company would have to prove the cause and the written notice.

Step by step

1. Keep the documents the employer must produce: contracts, payroll records, time records, vacation and aguinaldo receipts, and dismissal notices.
2. Appoint representatives with notarized powers sufficient to settle, so the company can attend every conciliation hearing.
3. Monitor the electronic mailbox assigned by the Conciliation Center for notices.
4. Use conciliation to settle where the cause is weak, ratifying the agreement at the hearing.
5. If conciliation fails, prepare for court with the burden of proof in mind and budget for back wages.

Common traps

Sending someone without authority. A representative without sufficient powers counts as non attendance: fine and conciliation ended (LFT art. 684-E).
Private releases. A release signed outside the Conciliation Center or court can be challenged for any waiver of rights (LFT art. 33).
Missing records. If the employer does not produce documents it must keep, the worker's version is presumed true (LFT art. 784).
Assuming a flat denial is enough. Denying the dismissal does not shift the burden of proof (LFT art. 784, section VI).

Sources

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