New vacation regulation in Mexico

A new vacation regulation in Mexico has been enacted through the publication in the Federal Register of a decree amending articles 76 and 78 of the Federal Labor Law (the reform).

The reform will become effective on January 1, 2023 and is set to increase the minimum statutory vacation periods that employees subject to Mexico’s Federal Labor Law are entitled to.

• After the first full year of employment, employees will now be entitled to at least 12 consecutive days of vacation.
• The statutory vacation period will increase two days every subsequent year until the fifth year.
• Starting on the sixth year, the statutory vacation period will increase two days every five years.

For reference:

The reform does not affect other rights or benefits that employees may be entitled to under their current employment terms:

• Employees which current employment conditions provide for vacation periods below the new statutory minimums set by the reform will automatically be entitled to the new vacation regulation.
• Employees which current employment conditions provide for vacation periods above the new statutory minimums set by the reform will, in principle and unless otherwise agreed in the relevant employment agreement, remain unchanged.