Article 987 Federal Labor Law

When employees and employers reach an agreement or a settlement for an employee, out of court, they may appear before the Conciliation Centers requesting its approval and ratification, in the terms referred to in the second paragraph of article 33 of this Law, for which purpose they shall identify themselves to the satisfaction of the Conciliating Authority.

In agreements that terminate the employment relationship, the amount delivered to the employee for wage, accrued benefits and profit sharing (PTU) must be itemized. In the event that the Joint Commission for Profit Sharing in the company or establishment has not yet determined the individual participation of the employees, their rights shall be preserved until the individual distribution project is drawn up.

The agreements entered into under the terms of this article shall be approved by the competent Conciliation Center when they do not affect the rights of the employees, and shall have definitive effects; therefore, they shall be elevated to the status of a final judgment.