On December 14, 2022, the Senate unanimously approved the amendments to the Federal Labor Law (LFT) to extend the vacation period for workers from 6 to 12 days from the first year of employment, and sent the ruling to the Federal Executive, pending only its publication in the Official Gazette of the Federation (DOF), with the expectation that it will become effective as of January 1, 2023.
What does the reform talk about in the workers' vacation period?
Article 76 of the LFT is amended by stating that employees who have more than 1 year of service will enjoy an annual period of paid vacation, which in no case may be less than 12 working days, and which will increase by 2 working days, until reaching 20, for each subsequent year of service; as of the sixth year, it adds, the vacation period will increase by 2 days for every 5 years of service.
Likewise, Article 78 of the LFT is amended, establishing that of the total corresponding period, each employee shall enjoy at least 12 days of continuous vacation, and that such period, at the discretion of the employee, may be distributed in the manner and time required.
New vacation periods for workers
Vacation periods will be as follows:
| Years Worked | Vacation days |
| 1 | 12 |
| 2 | 14 |
| 3 | 16 |
| 4 | 18 |
| 5 | 20 |
| From 6 to 10 | 22 |
| From 11 to 15 | 24 |
| From 16 to 20 | 26 |
| From 21 to 25 | 28 |
| From 26 to 30 | 30 |
Other points to consider regarding the reform for vacation periods for workers
The effects of the reform are not retroactive; therefore, there will be no increase in vacation days with respect to past vacation periods or those granted under current legislation; in other words, there are no debts for vacation days from past years; however, the vacation days corresponding to each employee must be increased in accordance with his or her seniority.
In other words, for example, if a worker had 6 days of vacation in his first year of work, it does not mean that with the reform the employer will have to grant him 6 more days; but for his second year, he will no longer have 8 days of vacation, but 14.
Likewise, it is important to mention that vacation days can only be increased and not decreased, therefore, if an employment contract establishes vacation periods longer than those established in the reform, such periods cannot be reduced as a result of the reform.
In the case of employees who began their labor relationship in 2022 and complete their first year of work in 2023, the reform does not establish provisions for the respective transition; however, in accordance with Article 18 of the LFT, which establishes that in case of doubt regarding labor regulations, the interpretation most favorable to the employee must prevail, it is considered that the most favorable to the employee is to enjoy the 12 days in force in accordance with the provisions of the LFT at the time the employee completes the year of services.
On the other hand, if an employee completes his/her first year of work in 2022, but takes or enjoys the vacation period until 2023, his/her vacation period will be 6 days in accordance with the legislation in force in the year in which he/she generated his/her right to the vacation period.
Other practical points to consider are that it increases the amount of the vacation bonus and, consequently, the contribution base salary and payroll tax. Likewise, the effect of the increase in the vacation bonus on the amount exempt from income tax and the partial deduction of such benefit should be considered.
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