Introduction
While the Mexican Federal Labor Law (LFT) allows employers to terminate an employee at any time, it mandates that the cause for termination must be justified. Despite this, more than half of labor disputes reported are related to unjustified dismissals. According to the latest Estadísticas sobre Relaciones Laborales de Jurisdicción Local (ERLAJUL) by the National Institute of Statistics and Geography (INEGI), 57.9% of work-related conflicts in the country were due to unjustified dismissals.
Low Performance as a Termination Factor
Although the LFT does not explicitly state that low performance can lead to termination, Bianca Martínez, a human resources specialist, explains that it can be a contributing factor in very few cases. She emphasizes the importance of performance evaluations to identify low productivity and subsequently address it.
Martínez highlights that if an employee has not received adequate training or feedback, it should prompt a performance improvement plan involving immediate supervisors to set clear goals and timelines.
Mendoza Bárcenas suggests conducting regular performance evaluations that include transparent results and constructive feedback, similar to the GPS system, which consists of:
- Gusto: Identifying what one values, appreciates, or highlights about performance or observable behaviors.
- Preocupaciones: Addressing performance and observable behaviors of an employee.
- Sugerencias: Providing suggestions from both the leader and organization for the employee’s improvement.
Mendoza Bárcenas acknowledges that, despite providing feedback and assistance, employees may still fail to meet expectations or align with required competencies.
If this occurs, human resource management must inform the Joint Commission for Training and Development, which can help document the situation and assist the company in navigating the termination process.
Stages of a Dignified Termination Process
Aarón Fernando Mendoza Bárcenas advises that a termination process, especially one involving dismissal, should be conducted with dignity. He outlines five stages to ensure a respectful and fair process:
- Preparation Stage: Gather all necessary documentation and evidence justifying the decision before formally meeting with the employee.
- Opening Stage: Establish a trusting and open environment for formal communication, ensuring impartiality and avoiding judgmental language.
- Termination Announcement Stage: Clearly communicate the reasons for termination without ambiguity.
- Listening Stage: Maintain composure, listen attentively to the employee’s emotions, and firmly but kindly explain termination arguments, emphasizing that it is a business decision, not personal.
- Feedback and Closure Stage: Focus on the employee’s positive contributions or strengths, reinforcing their self-esteem. Then, provide details regarding the handover of duties.
Martínez and Mendoza Bárcenas stress the importance of being direct, factual, respectful, and providing genuine support during the termination process.
Can Technology Determine a Termination?
According to Resume Builder’s survey, 9 out of 10 US executives use artificial intelligence (AI) to make decisions about their subordinates, with 66% trusting algorithms to determine terminations or contract rescissions.
Using tools like ChatGPT, Gemini, or Copilot, executives claim to evaluate employee performance and make decisions based on AI’s perceived impartiality. Some even allow AI to make decisions without human intervention.
However, Martínez cautions against relying on technology for such critical decisions, emphasizing that it does not hold absolute truth and should not be used to determine people’s futures.
