Mexico: Dignified Vacations - Recommended actions for employers handling the new changes to the labor reform regarding vacation days

In brief

On December 14, 2022, the Mexican Senate approved a decree by which articles 76 and 78 of the Federal Labor Law ("Law") were amended regarding vacation days. The purpose of the amendment  is to extend the number of vacation days in the private sector and provide the employees with certain prerogatives to allow them to enjoy their vacation periods consecutively.

The reform decree was sent to the executive power for publication in the Mexico Federal Official Gazette (DOF). It will become effective January 1, 2023, or the day after its publication.

Recommended actions

By the reform's effective date, employers must review the seniority chart of their employees, review the number of vacation days each employee is entitled to based on seniority, and confirm that their vacation policies comply with the new provisions. Specifically, employers will be required to:

  • Review collective bargaining agreements and individual employment contracts to confirm compliance and update applicable vacation days
  • Perform an analysis of the seniority of their employees, and the number of vacation days each employee is entitled to based on seniority at the time of the publication of the reform decree
  • Define an action plan for the granting of vacations in accordance with the dates on which employees must take their vacation

The reform establishes the minimum consecutive number of days to be taken by employees. However, it opens the possibility of employees and employers agreeing on when vacation days can be taken so that vacations do not affect the companies' operations.

Our Firm will gladly assist you in navigating and implementing this new law, including creating an action plan and steps to follow for determining and granting the vacation periods applicable in your workplaces.

In depth

The amendment to the Law provides for an increase from six to twelve working days of paid annual vacation for employees with more than one year of service, which will increase by two working days, up to twenty, for each subsequent year of service.

After the sixth year of service, the period will increase by two days for every five years. For a detailed explanation, see below:

Years of service Vacation days before the reform Years of service Vacation days after the entry into force of the reform
1 6 1 12
2 8 2 14
3 10 3 16
4 12 4 18
5-9 14 5 20
10-14 16 6-10 22
15-19 18 11-15 24
20-24 20 16-20 26


The amendment also provides that employees shall enjoy at least twelve continuous days of vacation, which, at the employees' discretion, may be distributed in the manner and time required. Before the amendment, the law only provided for six continuous vacation days, without including any additional entitlement for the employees.

The provisions of this reform will apply to individual or collective bargaining agreements in force on the reform’s effective date, if they are more favorable to employees' rights.

Finally, it is important to clarify that the statute of limitations provisions have not been changed. Therefore, the provisions of Articles 81 and 516 of the Law will continue to apply. In other words, vacations that have not been taken within the 18 months following the year of employment of each employee will be subject to the statute of limitations. Likewise, the vacation premium of 25% of the salaries corresponding to employees during the vacation period have not changed.

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