Mexico: Federal Labour Laws on Vacation Matters are Reformed

The Executive Order for the Reforms to Articles 76 and 78 of the Federal Labour Law modifying, increasing, the length of the vacation periods that workers will have a right to as of 1 January 2023 was published in the Official Gazette of 27 December 2022. This Executive Order is transcribed below.

ARTICLES 76 AND 78 OF THE FEDERAL LABOUR LAW, ON VACATION MATTERS ARE REFORMED.

Sole Article.- Articles 76 and 78 of the Federal Labour Law are reformed, to read as follows:

Article 76.- Workers who have more than one year of service will enjoy a yearly paid vacation period which in no case may be of less than twelve working days and which will increase by two working days, until it reaches twenty days, for each subsequent year of service.

From the sixth year forward, the vacation period will increase by two days for every five years of service.

Article 78.- Of the total time corresponding to the worker in accordance with the provisions of Article 76 of this Law, the worker will enjoy twelve consecutive days of vacation, as a minimum. Said period, under the control of the worker, may be distributed in the manner and time that he requires.

In consequence, the following changes to the number of vacation days that workers will have a right to in accordance with the provisions of Article 76 of the Federal Labour Law will enter into force as of the 1st day of January 2023.

The increase of two days per year ends in the fifth year and from the sixth year onwards it will increase by two years every 5 years of service.

However, article 78 of the Federal Labour Law indicates that the employee must enjoy at least 12 days of vacation in an uninterrupted manner, leaving the employee the chance to distribute the days in the way and time required.

As a result of the above, we recommend reviewing and revising the employment agreements, offer letters, and internal policies, including internal work regulations and letter/form implemented to request vacation days.