Global Compliance Desk – Mexico
Mexico: New Mandatory Rest Day on October 1, 2024
On September 18, 2024, the Upper Chamber of Congress of the Union approved an amendment to Section VII of Article 74 of the Federal Labor Law (“the Act”) wherein employees will be entitled to one additional mandatory rest day on October 1, 2024. The presidential decree has been issued and published in the Official Journal of the Federation (Diario Oficial de la Federación).
Effective October 1, 2024, the employees will be entitled to an additional mandatory rest day every six years for transfer of Federal Executive Power.
For instance, employees will receive a mandatory rest day on Tuesday, October 1, 2024, with the next mandatory rest day to be given on October 1, 2030.
Compensation for Work on Mandatory Rest Days
Employees who are required to work on October 1,2024 will be entitled to receive a premium pay of at least 300% of their regular rate of pay.
Employers who fail to adhere to this compensation requirement may face significant penalties, with fines ranging from 5,187 to 518,700 pesos.
Take away – Employers must take proactive steps to comply with the amendment and must review and revise their policies at the earliest in order to align with the upcoming changes to the existing leave requirements