On January 1, 2023 in Mexico, the reform of Articles 76 and 78 of the Federal Labor Law, published in the Official Gazette of the Federation on December 27, 2022, called “Dignified Vacations” in the draft reform initiative, has entered into force.

• The reform of Article 76 implies a significant increase in the number of vacation days to which employees are entitled, which in the first year of the contract increases from 6 to 12 days. The vacation period will increase by two days every year until it reaches twenty, and from the sixth year onwards, it will increase by two days every five years.

• Article 78 establishes that the employee must enjoy at least twelve continuous vacation days, however, if he/she wishes, he/she may distribute his/her vacation days as he/she deems necessary.

This reform is applicable on the effective date to all employment contracts in force at that date, provided that it is more favorable to the employees.

Companies must establish a clear procedure for the request and authorization of vacations and the way in which vacations will be accrued for the time worked in 2022, in addition to considering the economic implications of the reform.

If you need more information on the Reform of Articles 76 and 78 of the Federal Labor Law in Mexico, please do not hesitate to contact us, our experts in the field will inform and advise you on the new reforms.