Recent Case Decision- Determining the amount to be paid for Seniority Bonuses

The Mexican Supreme Court (Suprema Corte de Justicia de la Nación) recently approved case decision number2a./J.48/2011, which reads: “Seniority Bonus. The amount must be determined based on the salary earned by theemployee at the termination of the labor relationship.” In the case decision, the Mexican Supreme Court asserts thatconsidering the Seniority Bonus is a benefit that presumes termination of the labor relationship and is payable upon thetermination of such, the amount of the bonus must be determined based on the exact salary earned at the time oftermination, whether due to resignation, death, disability or retirement, and must not exceed two times the general orprofessional salary in effect at that time. This case decision was upheld among contradictory case decisions.