On January 1, 2023, the reform to the Federal Labor Law regarding Dignified Vacations went into effect.

Workers will have the right to take 12 consecutive days instead of previously 6 days. If an employer coerces them to take six days, they can file a lawsuit. 

Question: Do the 12 days kick in after one year of service or at day 1? 

You have to differentiate. The reform applies since January 1, 2023. 12 days of vacation are the absolute minimum.

But an employee is eligible to vacation only after the first year of service concluded.

Question: Apparently the language states something like “on the anniversary” when talking about the changes.  So the question is if this new table goes into effect for everyone January 1 or if it goes into effect on their anniversary date in 2023.

Article 76.- Employees with more than one year of service shall enjoy an annual period of paid vacation, which in no case may be less than twelve working days, and which shall increase by two working days, until reaching twenty, for each subsequent year of service. From the sixth year onwards, the vacation period shall increase by two days for every five years of service.

Example1: if the employee started to work on August 1, 2022, the first year of work ends on July 31, 2023. For the following year (August 1, 2023 to July 31, 2024) he is entitled to 12 days of continuous vacation, even, if the agreement signed in 2022 establishes a lower amount of vacation days.

Example 2: if the employee has been working for four years, and according to his original contract he has the right to 12 vacation days, then, starting January 1, 2023, he is entitled to 18 days for that fourth year.

Articles 76 and 78 of the Federal Labor Law were amended and now establish:

Article 76

- Workers who have more than one year of service will enjoy an annual period of paid vacation, which must at least be twelve working days, and which will increase by two working days, until reaching twenty, for each subsequent year of service.

- As from the sixth year, the vacation period shall increase by two days for every five years of service.

Article 78

- The worker shall enjoy at least twelve days of continuous vacation. Said period may be distributed at the discretion of the worker in the form and time so required.

In this way, the days of rest that correspond to the workers, according to the years worked, are the following:

Years worked   Vacation days

Year 1   12 days

Year 2   14 days

Year 3   16 days

Year 4   18 days

Year 5   20 days

From 6 to 10 years   22 days

From 11 to 15 years    24 days

From 16 to 20 years    26 days

From 21 to 25 years    28 days

From 26 to 30 years    30 days

From 31 to 35 years    32 days

According to the changes published in the Official Gazette of the Federation, these changes are applicable to all individual and collective bargaining agreements in force at the date on which the amendment to articles 76 and 78 of the Federal Labor Law becomes effective.

The 12 days of continuous rest will take effect once the first year of work concluded.

The decision to take the 12 days in a continuous or staggered manner is exclusive of the worker, if the employer tries to impose the way of taking the days off, the worker may take his case to the labor authorities to intervene in the case and impose the appropriate sanctions.

Vacation Bonus

Now, with respect to the vacation premium, this benefit was incorporated to the Federal Labor Law in the reform of 1970 in article 80.

Since this article was not modified, it remains in the same terms.

"Art. 80. Workers will have the right to a vacation premium of not less than twenty-five percent over the wages corresponding to them during the vacation period."

- The payment of a vacation premium is not proof that the worker has been granted vacation. Also, if the vacation has been granted, this does not release the employer from proving that the vacation premium was actually paid.

The purpose of the vacation bonus is to provide the employee with the means to effectively enjoy his vacation period. It is normally paid on the anniversary date.

Details in the Official Gazette of the Federation

https://dof.gob.mx/nota_detalle.php?codigo=5675889&fecha=27/12/2022#gsc.tab=0