Seniority Premium Agreement Mexico (Acuerdo de Prima de Antigüedad)

A Seniority Premium Agreement Mexico (Acuerdo de Prima de Antigüedad) is a formal bilateral document in which an employer (patrón) and a worker (trabajador) — or their duly authorized representatives — agree on the calculation, amount, and terms of payment of the prima de antigüedad (seniority premium) that the worker is entitled to receive upon the termination of their employment relationship under Article 162 of the Ley Federal del Trabajo (LFT) published in the Diario Oficial de la Federación on 1 April 1970 and subsequently reformed. The agreement serves as evidence that the prima de antigüedad has been correctly computed and accepted by both parties, preventing future disputes about the amount before the Tribunales Laborales or the Centro Federal de Conciliación y Registro Laboral (CFCRL).

The prima de antigüedad is one of the most distinctive features of Mexico's labour law system and reflects the constitutionally protected recognition of the worker's years of contribution to the employer's enterprise under Article 123, Apartado A of the Constitución Política de los Estados Unidos Mexicanos of 5 February 1917. Article 162 LFT establishes the prima de antigüedad as an unconditional statutory benefit — neither a contractual benefit nor a discretionary payment — that accrues to every worker in proportion to their years of service and becomes payable upon termination of the employment relationship in specified circumstances.

Article 162 LFT establishes three situations in which the prima de antigüedad is payable. First (Fracción I), when the worker voluntarily resigns (renuncia voluntaria) after completing at least fifteen years of continuous service with the same employer — the fifteen-year threshold is a critical requirement: workers who resign before completing fifteen years of continuous service are not entitled to prima de antigüedad unless the employer's internal policies or a collective bargaining agreement (CCT) registered with the CFCRL provide more favourable terms. Second (Fracción II), when the worker dies during active employment — the prima de antigüedad becomes payable to the worker's beneficiaries (beneficiarios) registered with the IMSS or designated in the worker's testament, calculated from the first day of service regardless of whether fifteen years have been completed. Third, when the employment relationship is terminated in any other manner — including unjustified dismissal (rescisión injustificada under Articles 48–50 LFT), justified dismissal at the employer's initiative (rescisión justificada under Article 47 LFT), collective termination (terminación colectiva under Articles 433–439 LFT), and forced resignation or constructive dismissal (rescisión justificada por parte del trabajador under Article 51 LFT) — the prima de antigüedad is payable from the first day of service without the fifteen-year minimum requirement.

The calculation of the prima de antigüedad under Article 162, Fracción III LFT is: twelve days of salary (salario) per complete year of service (año de servicios prestados), with the daily salary rate capped at twice the general minimum wage (doble del salario mínimo general — SMG) established annually by the Comisión Nacional de los Salarios Mínimos (CONASAMI). For 2025, the SMG is MXN $278.80 per day in the general zone and MXN $419.88 per day in the northern border free zone (Zona Libre de la Frontera Norte — ZLFN), meaning the cap is MXN $557.60 per day (general zone) or MXN $839.76 per day (ZLFN) — workers earning above the cap receive prima de antigüedad calculated at the capped rate, not at their actual daily salary.

The Suprema Corte de Justicia de la Nación (SCJN) has issued extensive jurisprudence (tesis jurisprudenciales) clarifying the scope of Article 162 LFT, including rulings on the treatment of interruptions in continuous service, the aggregation of service periods for intermittent workers, and the application of the cap to workers earning salaries substantially above the minimum wage. The SCJN's labour jurisprudence is binding on the Tribunales Laborales under the Ley de Amparo and the Ley Orgánica del Poder Judicial de la Federación (LOPJF).

A Seniority Premium Agreement Mexico is needed whenever the employment relationship between a worker and employer governed by the Ley Federal del Trabajo is terminated in circumstances that trigger the prima de antigüedad entitlement under Article 162 LFT, and both parties wish to document the agreed calculation and payment of this benefit to prevent future disputes.

The agreement is most commonly needed when a worker with fifteen or more years of continuous service voluntarily resigns (Article 162, Fracción I LFT) and the employer must calculate and pay the prima de antigüedad as part of the finiquito (settlement of accrued benefits). In voluntary resignation cases, the Acuerdo de Prima de Antigüedad serves as the document that accompanies the resignation letter and the finiquito calculation, ensuring that the worker acknowledges receipt of the correct amount and waives any further claim for this specific benefit before the CFCRL or Tribunal Laboral.

The document is needed in unjustified dismissal (despido injustificado) liquidación proceedings under Articles 48–50 LFT for any worker — regardless of years of service — since the prima de antigüedad is payable from the first day of service in non-voluntary terminations. Employers who prepare liquidación calculations as part of a negotiated severance settlement must include the prima de antigüedad calculation in the Acuerdo de Prima de Antigüedad and obtain the worker's signature confirming the agreed amount. This is particularly important when the settlement is reached through CFCRL mandatory conciliation, as the conciliation agreement must specifically itemize each benefit paid, including the prima de antigüedad.

The agreement is needed in collective termination (terminación colectiva) proceedings under Articles 433–439 LFT — when a company undergoes plant closure, significant workforce reduction, or cessation of operations — since the prima de antigüedad must be calculated and paid to every terminated worker as part of their individual liquidación package. In large-scale collective terminations, the Acuerdo de Prima de Antigüedad is executed on a per-worker basis as part of the individual settlement documentation required by the Tribunal Laboral that authorizes the collective termination.

A Seniority Premium Agreement is also needed in mutual agreement terminations (terminaciones por mutuo consentimiento under Article 53, Fracción I LFT) — when the employer and worker agree to end the employment relationship by mutual consent. In these cases, the prima de antigüedad calculation should be specifically addressed in the termination agreement, which must also pass through the CFCRL for approval if it involves a full waiver of worker rights under Article 33 LFT. Article 33 LFT requires that any agreement in which a worker waives rights established in the LFT must be approved by the Tribunal Laboral or notarized before a Notario Público to be enforceable — a critical requirement that prevents employers from pressuring workers into signing improper finiquitos.

The document is needed when a worker dies during active employment — Article 162, Fracción II LFT entitles the worker's beneficiaries (beneficiarios registered with the IMSS or legally designated heirs) to receive the prima de antigüedad calculated from the first day of service. The employer must prepare the Acuerdo de Prima de Antigüedad with the legal representatives of the estate and pay the benefit through the corresponding legal channels.

Employers in sectors with active collective bargaining agreements (CCTs) registered with the CFCRL must verify whether the applicable CCT provides superior prima de antigüedad terms — for example, a higher base of twelve days per year, a higher salary cap, or entitlement from the first day of service regardless of resignation circumstances — since the more favourable CCT terms control under Article 57 LFT. The Acuerdo de Prima de Antigüedad should explicitly identify which framework — LFT or CCT — applies to the calculation.

A valid Seniority Premium Agreement Mexico under Article 162 of the Ley Federal del Trabajo must contain the following essential elements to document the prima de antigüedad calculation correctly, obtain enforceable acknowledgment from the worker, and comply with the formal requirements of Article 33 LFT for benefit waivers.

Party Identification: Full legal name, RFC (Registro Federal de Contribuyentes assigned by the SAT), and address of the employer (patrón); and full name, RFC, CURP (Clave Única de Registro de Población issued by RENAPO), NSS (Número de Seguridad Social assigned by IMSS), and job position of the worker (trabajador). The agreement must identify whether the worker is represented by an attorney (abogado patrono) or authorized union representative, and include the representative's identification and the basis of their authority.

Employment Relationship Data: The start date (fecha de ingreso) and end date (fecha de baja) of the employment relationship, the total years and days of continuous service (antigüedad), the reason for termination (causal de terminación) — identifying the specific Article 162 LFT fracción applicable (voluntary resignation after 15 years, death, or other termination), the worker's last occupied position (último puesto), and the applicable work location (lugar de prestación del servicio).

Salary Basis for Calculation: The worker's daily salary (salario diario) used as the basis for the prima de antigüedad calculation. Article 162 LFT uses the ordinary daily salary (salario diario ordinario) for the calculation — not the Salario Diario Integrado (SDI) used for IMSS contributions. The agreement must explicitly apply the cap: if the worker's actual daily salary exceeds twice the general minimum wage (doble del SMG), the calculation must use the capped rate — for 2025: MXN $557.60 per day (general zone) or MXN $839.76 per day (ZLFN). The agreement should note the applicable CONASAMI minimum wage for the relevant year and geographic zone.

Calculation Worksheet: A detailed arithmetic calculation of the prima de antigüedad, presented step-by-step: (1) total complete years of service (años cumplidos de servicios prestados); (2) applicable daily rate — actual salary or cap, whichever is lower; (3) prima de antigüedad = 12 days × years of service × applicable daily rate. For example, a worker with 20 years of service earning MXN $650 per day (above the MXN $557.60 general zone cap) receives: 12 × 20 × $557.60 = MXN $133,824. Partial years of service (fracción de año) are typically prorated proportionally based on months served in the final partial year, though this point should be confirmed with the applicable jurisprudencia of the SCJN.

Payment Terms: The total amount of the prima de antigüedad agreed (monto total acordado), the payment method (bank transfer — SPEI to the worker's CLABE interbancaria; or physical delivery of a cheque certificado), the payment date (fecha de pago), and, if payment is made in installments, the schedule of each installment with its amount and due date. Installment payment of prima de antigüedad requires the worker's express written consent — the employer cannot impose installment payment unilaterally.

Relationship to Overall Finiquito: Explicit statement of whether the prima de antigüedad payment documented in this agreement is part of a broader finiquito (settlement of all accrued benefits) or a standalone payment. If the agreement is part of a broader liquidación, the total finiquito should be itemized to show each component — prima de antigüedad, indemnización constitucional (if applicable), proportional aguinaldo, proportional vacation, prima vacacional, PTU — separately, since CFCRL conciliation agreements and Tribunal Laboral judgments require itemized benefit breakdowns.

Article 33 LFT Compliance: A statement confirming that the worker has read and understood the agreement, has had the opportunity to consult legal counsel, and is freely and voluntarily accepting the agreed amount as full satisfaction of the prima de antigüedad entitlement under Article 162 LFT. Where the agreement involves a waiver of future claims beyond the prima de antigüedad, the agreement must comply with Article 33 LFT — which requires judicial or notarial approval for agreements that waive LFT rights — and should be executed before the CFCRL conciliation officer or a Notario Público to be enforceable against the worker.

Signatures and Witnesses: Signatures of both the employer's authorized representative and the worker, dated and accompanied by a witness (testigo) signature for each party where feasible. The employer's representative must sign with their full legal authority — a corporate resolution (acta de asamblea) or power of attorney (poder notarial) confirming authority to execute settlement agreements on behalf of the legal entity.

Forms-legal.com provides this Seniority Premium Agreement Mexico template as a practical starting point. Given the cap calculation complexity, the Article 33 LFT waiver requirements, and the CFCRL and Tribunal Laboral procedural rules, employers and workers should engage a licensed abogado laboralista and a certified public accountant (contador público certificado — CPC) to verify the calculation and ensure the agreement is enforceable before execution.