Four myths (or realities) in human capital relations.

Between our corporate culture, sometimes prone to “urban legends” and the labor reform, which, although distant (passed a year and a half ago) and not yet implemented to its full extent, the myths in regard to certain aspects of human capital have heightened; in that regard we have prepared this paper in the hope that it proves useful.

1.- If I quit or am fired, I always have the right to 12 day’s salary for each year: This is a recurrent myth found in the queries made to our Firm; in reality, the claim refers to the so-called seniority bonus (which is also different from the famous 20 days per year). The seniority bonus, in fact, consists of 12 days per year worked, but with a salary capped at twice the minimum wage; in other words, this claim is calculated based on the employee’s salary, but if he or she earns more than two minimum wages per day (around $135 MXN), then this last amount will be used as the top limit to be used in the calculation. Additionally, in regard to its applicability, there are two different scenarios: dismissal and resignation. In case of the latter (resignation), the payment of the seniority bonus applies only if the employee has a previous seniority of 15 years or more of service. On the other hand, if the employee is dismissed for cause (for example, for a breach of trust) payment is mandatory regardless of the employee’s seniority; paradoxical, isn’t it?