Effective salary for paying seniority premium purposes .

On February 16, 2011, The Supreme Court,
ruled regarding a contradiction sustained
between several Circuit Courts of Appeals
(Tribunales Colegiado de Circuito) related to
the salary that has to be considered as the basis
for a seniority premium payment. The Supreme
Court decided that the following criteria will
rule:

EMPLOYEES´ SENORITY PREMIUM,
HAS TO BE DETERMINED ACCORDING
WITH THE SALARY CORRESPONING TO
THE DAY OF THE LABOR RELATIONSHIP
TERMINATION.

Under articles 485 and 486 of the Mexican
Labor Law, twice minimum wage is the cap to
pay the seniority premium for those employees
who earn more that twice minimum wages.
However, there were two different criteria to
consider the way to apply such cap.
a) The minimum wage applicable and
effective on the date in which the employee
actually receives the payment of the seniority premium disregarding the date of the labor
relationship termination and:
b) The minimum wage applicable and
effective on the date of the labor relationship
termination.

The Supreme Court decided that the latter
will apply. The current ruling by the Supreme
Court caused several reactions between
employees, workers and Unions.