There are a number of payments (Finiquito, Aguinaldo & Vacation pay, plus several others) owed when you fire a housekeeper or gardener domestic worker in Mexico.
It can be helpful to have some sense of the legal terminologies used, before you talk with a Labor Attorney, so I share the following educational post, not as legal advice, but as a starting primer to help understand Mexico’s somewhat complex system of payments when you fire a domestic worker:
Here’s one example of one (anonymous) fellow’s descriptions of the Ley Federal de Trabajo’s requirements, with helpful explanations. Again, this is NOT meant to be legal advice, not is it the last word on how to fire a domestic worker … It’s just an educational “jumping-off” point:
” Mexico’s Ley Federal del Trabajo (Federal Labor Law or LFT) … is famously pro-worker, and household employees (domestic workers) enjoy the exact same labor rights as corporate employees.
Because you are dealing with unpredictability rather than a legally defined “just cause” (which under Article 47 requires severe misconduct like theft or more than three consecutive unexcused absences), letting her go will legally be classified as a termination without just cause.
To handle this cleanly, protect yourself from future disputes, and part ways amicably, you will want to understand the framework below.
1. The Legal Framework: Finiquito vs. Liquidación
When you terminate an employee without just cause in Mexico, you cannot simply pay for time worked. You are legally required to pay a combination of Finiquito (accrued benefits) and Liquidación (severance).
Because she only works one half-day a week, all calculations must be based on her Daily Wage (Salario Diario). To find this, take her weekly pay and divide it by 7 (not by 1 or the hours worked). For example, if you pay her $400 pesos for her Tuesday shift, her legal daily wage is:
$400 / 7 = $57.14 pesos per day.
The total package she is owed consists of:
The Finiquito (Accrued Benefits)
You owe this regardless of why an employee leaves:
Prorated Aguinaldo (Annual Bonus): A minimum of 15 days of salary per year, prorated as a percentage of the year, for the weeks worked so far in 2026. For a 52 week year, an employee who works 13 weeks then gets 25% of the whole year’s Aguinaldo.
Prorated Vacations & Vacation Premium (Prima Vacacional): Based her number of years of seniority, she is entitled to a legally stipulated number of vacation days per year, plus a 25% bonus.** You owe any unused days plus the mandatory 25% cash premium on those days, prorated for this year.
Vacation pay starts with a basic minimum payment of 12 days of Daily Rate pay, plus a 25% bonus.** … => Daily Rate pay x 1.25 x # of Vacation Days.
Vacation pay also includes additional pay for more than 1 year of working for you.
**Further, as of 2023, Mexican labor law requires employers to pay a vacation premium, a bonus of **at least 25 percent of the base salary**, so that vacation days are paid at a 125 percent salary rate at a minimum:
1st year – 12 days of Daily Rate pay**
2 years – 14 days
3 years – 16 days
4 years – 18 days
5 years – 20 days
6 to 10 years – 22 days
11 to 15 years – 24 days
16 to 20 years – 26 days
21 to 25 years – 28 days
26 to 30 years – 30 days
31 to 36 years – 32 days
Unpaid Days: Any days worked in the current pay cycle that haven’t been paid.
The Liquidación (Severance)
Because this is a termination without just cause, you legally owe:
3 Months of Salary: 90 days of her calculated daily wage.
20 Days of Salary per Year worked: For 6 years of service, this equals 120 days of salary.
The Prima de Antigüedad: Seniority Premium:
The Prima de Antigüedad (12 days per year) is technically only mandatory for employees with 15+ years of service or those terminated without cause. However, labor lawyers almost universally recommend including it in a severance package to ensure the termination agreement stands up in court.
The Practical Reality: Mutual Agreement:
While the math above represents the strict letter of the law, the overwhelming majority of domestic worker terminations in Mexico are settled via a Mutual Agreement (Mutuo Consentimiento) under Article 53.“
What Happens When No IMSS Payments Have Been Made:
Not having registered her with IMSS (Instituto Mexicano del Seguro Social) significantly changes the dynamics and raises the stakes.
Since late 2022, enrolling household workers in IMSS has been mandatory by Mexican law, even for part-time workers who only work one day a week. Because of this, she holds a very strong position if she decides to go to the local labor board (Centro de Conciliación Laboral). If a formal dispute arises, the labor board could force an employer to retroactively pay all missed IMSS quotas for the entire 6 years, plus hefty fines and surcharges.
However, do not panic. This is an incredibly common scenario in Mexico, and it simply means you need to prioritize an amicable, cash-settled mutual agreement next week.
The Risk Strategy: Why a Good Package Matters Now:
When a worker has not been on IMSS, the goal of the termination package changes. It is no longer just about giving her what is strictly owed; it is about purchasing your peace of mind and legal safety.
If you offer a bare-minimum Finiquito (just prorated vacations and Christmas bonus), she may feel slighted, go to a labor advisor, and realize she can claim 6 years of backdated social security.
To prevent this, you want to offer a package that feels incredibly fair and generous to her, making her eager to sign a waiver and move on.
Recommended Action Plan:
1. Sweeten the Severance Offer
Instead of fighting over the strict legal 3 months + 20 days per year calculation (which would be very high), structure an offer that represents a solid cash cushion for her part-time income.
A highly effective strategy is to offer her standard accrued benefits (Finiquito) plus 3 to 4 months of her regular weekly pay as a lump-sum severance.
For example, if she makes $400 pesos every Tuesday, offering her the accrued benefits plus a flat $5,000 or $6,000 pesos as a “thank you and transition fund” usually ensures an amicable handshake.
2. The Golden Rule: Do Not Mention the “I-Word”
During your conversation with her, focus purely on the schedule changes, household needs, and her frequent absences.
Do not bring up IMSS or registration. (Editor’s Note: ???)
Frame the extra money you are offering as a gesture of goodwill, appreciation for her 6 years of help, and a desire to support her family through this transition.
Draft a Airtight “Convenio de Terminación” (Termination Agreement):
Because she is not registered with IMSS, having a signed, physical document is your only real shield. The agreement must be written in Spanish and explicitly state:
1 That the relationship is ending by mutual consent (mutuo consentimiento) under Article 53, Fraction I of the Ley Federal del Trabajo.
2 A clear breakdown of the money being handed over (Labeling it as Gratificación voluntaria or Finiquito/Indemnización).
3 A strict “release of liability” clause stating that no past debts, wages, benefits, or social security obligations exist, and that she grants the most absolute release of liability known to law (el finiquito más amplio que en derecho proceda).
4. Date & Sign, (in ink), and 2 Witnesses**
When you hand over the cash:
Have her sign next to her typed name, on the clearly dated document.
Crucially, have her press her right thumb into an ink pad and place her thumbprint directly next to her signature on every single page. In Mexican labor disputes, signatures are frequently contested, but a thumbprint is legally binding and incredibly difficult for a labor lawyer to challenge.
**Have two people (friends, neighbors, or family members) sign as witnesses (testigos).
Most part-time household workers in this situation prefer a quick, respectful conversation and a solid lump sum of cash over a drawn-out legal process. If you approach next week’s meeting with empathy, clarity, and a fair cash settlement in hand, she will likely sign the paperwork gladly.“
Again, this report is NOT meant as legal advice, as it is just a fun FB post, extracted & copied simply as starting point for understanding the kinds of payments that may be owed when someone chooses to fire their Mexican domestic worker.
It’s best to seek legal advice from a good labor lawyer on these issues.
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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry
Read on, MacDuff.
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