On December 27, 2022, the decree amending articles 76 and 78 of the Federal Labor Law (LFT) regarding vacations was published in the Official Gazette of the Federation (DOF). These modifications will enter into force as of January 1, 2023.

Through this reform, it is specified that workers who have completed one year of service will have the right to enjoy an annual vacation period of 12 continuous days. Subsequently, vacations will be increased by two working days, up to twenty for each year of service provided. It is also specified that, from the sixth year on, the right to vacation increases by two days for every five years of service, as shown in the following table:

Despite the fact that the reform mentions that the 12 days of vacation must be continuous, said period at the discretion of the worker may be distributed in the manner and time that is required. That is, if the worker decides that they are not continuous, he may choose to do it that way and distribute.

Aspects to consider derived from the vacation reform:

• The new salary integration factors for IMSS purposes must be updated no later than January 6, 2023, based on the number of vacation days that corresponds to each worker.

• In the case of workers that doesn´t want to enjoy 12 days of vacation continuously, the company must obtain written confirmation of the worker’s desire.

• Individual and work contracts must be modified considering the increase in vacation days for workers.

• Every year employers must deliver a vacation certificate to workers indicating the number of days to which they are entitled and the date on which they expire.

• The payroll systems must be updated not only considering the new vacation days but must also include the new ISR (Income Tax) calculation tables for 2023 based on the payroll period of each company.

Unfortunately, the reform does not clearly contemplate how vacation days for workers should be computed in the transition period.

The right to vacations is born from the year of service before that period the workers will not legally be able to enjoy them. However, in case of doubt, the courts must resolve in the most favorable sense that benefits the worker.

Let’s hope that the labor authorities establish clear rules that help employers establish the vacation days that each worker will be entitled to enjoy as of 2023.

We remain at your service for any questions or clarifications in this regard.