Labor Reform Proposal for 2023

In the year 2022, the labor reform implemented the last of the three transition stages aimed at the new model of union justice. Now, for the next 2023 cycle, the so-called Mexico labor reform lies in the expansion of the number of vacation days that formally employed workers in the private sector are entitled to.

The initiative, which was approved in October 2022, and which will be discussed by the plenum, proposes changes to articles 76, 78, and 81 of the LFT, related to the right to paid vacations.

Seeking to encourage labor productivity and bring Mexico closer to international standards, the minimum annual number of vacations will be 12 days starting from the first year worked, increasing by two days for each subsequent year up to 20 vacation days. After that, it would be two days for every five years of work.

In the same way, it is intended to modify that workers can enjoy a continuous period of at least 12 vacation days. Similarly, companies must grant vacation days 3 months after the completion of the year of service, while currently it is after six months.

Therefore, if the LFT reform is approved by both chambers of the Union Congress, the current workforce that is providing services will have the right to the vacation period in accordance with the modified text and taking into account the transitional articles, referring to the entry into force of the decree of publication in the DOF.

On the other hand, it is important to note that the LFT only sets the minimum number of vacation days that must be enjoyed, so employers can agree on a longer period.