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Changes to the Vacation Law in Mexico (ratified in late 2022) went into effect on January 1, 2023, and it is important that employers and employees familiarize themselves with the changes.

The most significant part of the changes relates to the number of days employees are eligible to receive based on years they have been working with the company.

Additionally, employers and employees should be aware of the following requirements:

  • Employees are entitled to take 12 consecutive vacation days if they choose.
  • Employers must review offer letters, employment agreements, and internal policies with employees.
  • Employers should adjust any digital vacation request tools to reflect the new accrual schedule for each employee.
  • Any terminations conducted on or after January 1, 2023 should include the new accrual
    schedule and vacation premium payments.

Do you run a business with employees or hire domestic workers? If so, you need to be sure  you are closely following Mexican labor laws. Our team of experienced and professional accountants can offer a variety of payroll and employee services. Contact us today to learn more.