Mexico Implements New Vacation Claim Rules and Phases in 40‑Hour Work Week

Mexico's Federal Labor Law requires employers to grant vacation within six months of an employee's work anniversary. Workers have up to 18 months from the anniversary to claim unused vacation days and the associated vacation premium; after that period the right to sue expires. The law also sets a minimum of 12 vacation days after one year of service, increasing with seniority, and prohibits cash substitution while the employment relationship continues.

Starting next year, the law mandates a gradual reduction of the standard workweek from 48 to 40 hours, to be completed between 2027 and 2030. The change must not affect salaries, benefits, or previously agreed rights. Misconceptions persist, such as the belief that the reduction must be immediate or that it will inevitably lower productivity. Officials stress that proper planning can allow firms to redesign operations without losing efficiency.