Mexico Employment Law Update: Vacation Days Must Increase Beginning January 1, 2023

Employers with a presence in Mexico should be aware of a recent change in Mexican employment law. Effective as of January 1, 2023, employees in Mexico will be entitled to more vacation days.

Employees with one to five years of seniority will enjoy six more days of vacation entitlement. Currently, the vacation entitlement for employees with one, two, three, four and five years of seniority is six, eight, 10, 12 and 14 days, respectively. The new legislation will require employers to raise those vacation-day tallies to 12, 14, 16, 18 and 20 days, respectively.

Those employees with six or more years of seniority will enjoy the following changes:

  • Six to 10 years of seniority equates to 22 vacation days
  • Eleven to 15 years of seniority equates to 24 vacation days
  • Sixteen to 20 years of seniority equates to 26 vacation days
  • Twenty-one to 25 years of seniority equates to 28 vacation days
  • Twenty-six to 30 years of seniority equates to 30 vacation days
  • Thirty-one or more years of seniority equates to 32 vacation days.

In short, this new legislation entitles employees to either six or eight additional vacation days depending on their level of seniority and their current bracket of stipulated days. Employees at the top of each seniority bracket (10, 15, 20, 25 and 30 years) will see an increase of six days, while all others within the seniority bracket will enjoy eight more vacation days.

Additionally, the reform contemplates that the employee should be entitled to a vacation period of at least twelve continuous days unless the employee decides otherwise.

This new legislation will require employers to review employment agreements, offer letters, and internal policies, including internal work regulations.

Employers also should revise digital vacation request systems to ensure the vacation-day allotment increase is reflected on each employee’s respective account.

Any terminations carried out after January 1, 2023, should include new accrued vacation premium payments.

The modification will apply to all individual employment agreements and collective bargaining agreements, provided that the new vacation entitlement is more favorable for the employee.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.