3 ms·

Let me clarify the point. I don’t have an issue with the severance for staff I’ve had to let go for as layoffs due to economic conditions of the company. I’ve m

Let me clarify the point. I don’t have an issue with the severance for staff I’ve had to let go for as layoffs due to economic conditions of the company. I’ve made those severance payments without issue. My issue is more with letting go of people for performance reasons. Hiring someone for 2 months and finding out they are under performing still requires the severance pay. You can fight this with the labor board but the standard is high when letting go because of performance. It’s a paradigm shift for most US based companies where letting someone go for performance reasons can come at a low cost. It also means, in the context of this thread, that Mexico is at a competitive disadvantage to other south and Central American countries with more lax labor laws.

TremendousJudge 3y ago
From the point of view of the worker, it's the same thing -- you were employed with the expectation of stability, now you're getting fired and have to find another job before your family ends up on the street. It's a very vulnerable position to be as a worker, which is why in many countries they have the right to severance pay. Anyway, it's common (here in Uruguay at least) for contracts to include a 3 month "test period" clause where the company can fire you without paying severance, to prepare for that exact situation. Don't you do that? It's reasonable enough to me.