On September 27, 2022, the Labor and Social Welfare and Legislative Studies Joint Commissions
unanimously approved the opinion through which Articles 76 and 78 of the Mexican Federal Labor Law are amended to increase the annual period of paid vacations for employees.
WHAT DOES IT CONSIST OF?
The reform initiative has the objective of providing employees with the right to a greater number of paid vacation days for every year of services rendered; the number of days will increase based on the employee’s seniority.
Under the reform initiative, employees will be entitled to a yearly vacation period of 12 days from their first year of service. This vacation period will increase on a yearly basis by 2 vacation days until it reaches 20 vacation days. From the sixth day forward, the vacation period will increase by 2 days for every 5 years of service.
For a better understanding of the foregoing, below please find the proposed change in relation to the vacation days currently provided by the Mexican employment law:
| Seniority (years of service) |
Number of Vacation Days (current law) |
Number of Vacation Days (reform initiative) |
|---|---|---|
| 1 | 6 | 12 |
| 2 | 8 | 14 |
| 3 | 10 | 16 |
| 4 | 12 | 18 |
| 5 | 14 | 20 |
It is important to note that the initiative was turned over to the Commission on Legislative Studies of the Senate for its approval and discussion as well as for its subsequent submission and vote at the plenary of the Senate.
RECOMMENDED ACTIONS
If the initiative is approved and published, the recommended actions to be implemented are the following:
- Analyzing the impact of the daily aggregate salary based on the seniority premium for applicable cases.
- Increasing the base quotation salary for the purposes of payment of social security contributions.
- Review and/or update of the internal policies of the company, internal labor regulations, etc.
For additional information, please contact:
Jimena A. Sánchez Argoytia
jsanchez@dlvmr.com.mx
