Reform to the Federal Labor Law regarding Vacations

On December 27th, 2022, the Reform to Articles 76 and 78 of the Federal Labor Law regarding vacations was published in the Federal Official Gazzette, such Reform will become effective on January 1st, 2023.

Due to the foregoing, employees with more than 1 year of seniority will be entitled to an annual vacation period of at least 12 continous days, on the understanding that the employees may discretionally distribute such days throughout the year.

Furthermore, during the first five years of seniority, the vacation period will increase anually in 2 days and, after the sixth year, it will increase in 2 days for each five years of seniority, as set forth below:

Please consider that the foregoing amendments wil be applicable to all individual labor agreements and collective bargaining agreements (notwithstanding its denomination) even if they have been executed prior to the effective date of the Reform, and as long as it represents a benefit to the employees; considering that the vacation days set forth in the Federal Labor Law are the minimum mandatory periods, therefore, the parties may agree on additional vacation days.

The complete text of the Reform is available at the following link: Vacation Reform

For any questions or comments regarding the foregoing, please contact our attorneys of the Corporate Law Practice, at the following email addresses:

Luis González
Partner
T: +52 55 50620056
lgonzalez@pcga.mx

Fernando Eraña
Partner
T: 55 50620054
ferana@pcga.mx

Eduardo Montenegro
Associate
T: 55 59850495
emontenegroa@pcga.mx