Global Compliance Desk – Mexico
Mexico: Amendment to Annual Leave Law
On November 3, 2022, Mexico’s Senate of the Republic approved a decree to modify Art 76 and 78 (Annual Leave) of Mexico’s Federal Labor Law (FLL) to entitle employees to more paid vacation days. The amendment shall enter into force on January 1, 2023.
Currently, employees are entitled to 6 working days after being employed for one year with the same employer. For the next 3 years, the vacation period is increased by 2 days for each year of service, so that when an employee completes the 4 years of service, the duration of the annual vacation is 12 calendar days. As of the fifth year, the employee is entitled to 14 days of vacation. After the fourth year, the vacation period will increase by 2 days for every 5 years of service.
Amendment to Annual Leave
Effective January 1, 2023, the FLL will be amended as follows –
- Employees who have more than 1 year of service with the same employer will be entitled to an annual paid vacation period, which may not be less than 12 working days. The vacation period will increase by 2 days for each subsequent year of service, up to 20 days of vacation by the 5th year of service.
- Starting in the 6th year, the vacation period will increase by 2 days for every 5 years of service.
Thus, the amendment would allow employees to accrue vacation leave as follows:
- Year 1 – 12 days of vacation.
- Year 2 – 14 days of vacation.
- Year 3 – 16 days of vacation.
- Year 4 – 18 days of vacation.
- Year 5 – 20 days of vacation
- Year 6 – 10: 22 days of vacation.
- Year 11 – 15: 24 days of vacation.
- Year 16 – 20: 26 days of vacation.
- Year 21 – 25: 28 days of vacation.
- Year 26 – 30: 30 days of vacation.
- Year 31 – 35: 32 days of vacation.
Furthermore, the employees shall enjoy at least 12 continuous days of leave for each year of entitlement.
This new legislation will require employers to review their annual leave policies and update the same accordingly.
