Reform to the 76 and 78 articles of the Mexican Federal Labor Law relating to paid vacation

Source: EC Rubio

On December 27, 2022, the Federal Official Gazette published the decree that reforms Articles 76 and 78 of the Mexican Federal Labor Law (FLL) regarding paid vacation, which will come into effect as of January 1, 2023.

In accordance with the above and because of the reform, the Federal Labor Law has established that workers who have completed more than 1 year of service will enjoy an annual paid vacation period, which in no case may be less than 12 business days and will progressively increase to 20 business days for 5 years of service. From the first year to the fifth year, the period will increase by 2 business days for each year of service.

Starting with the 6th year of service, the vacation period will increase by 2 days for every 5 years of service.

In accordance with the above, the vacation days established in the FLL are as follows:

YEARS OF SERVICE VACATION DAYS
Year 1 12 days
Year 2 14 days
Year 3 16 days
Year 4 18 days
Year 5 20 days
From 6 to 10 years 22 days
From 11 to 15 years 24 days
From 16 to 20 years 26 days
From 21 to 25 years 28 days
From 26 to 30 years 30 days
From 31 to 35 years 32 days

Moreover, the FLL now grants at least 12 continuous days of paid vacation to workers, who will be able to decide themselves how to distribute the vacation days.

The decree also points out that amendments made to paid vacations are applicable to individual and collective employment agreements, whichever is more convenient for workers´ rights.

As a result of this reform, it will be necessary for employers to review, modify, and update several labor documents as well as analyze the financial impact on their businesses. 




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