Regulations for Computing Employee Vacation Time

July 17, 2008
Regulations for Computing Employee Vacation Time

In conformity of Article 76 of the Federal Labor Law, workers who have more than one year of seniority enjoy annual paid vacation, which pay may not be less than six days of daily salary, which is then increased by two days of salary each subsequent year until the total paid salary reaches 12 days. After the fourth year, vacation pay is increased by two days of salary for each 5-year period of service to the employer. In this regard, the Mexican Supreme Court has determined in a decision issued by its second chamber that the right to receive vacation pay is generated by the employee’s time of providing services to the employer, so that in the 5-year term of employment referred to in the above-referenced Article of the Federal Labor Law, such period begins on the date of hiring, and seniority will accumulate day after day until the employee reaches five years of service, at which time the employee will enjoy the benefits from years 5 through 9, consisting of 14 days of vacation, and for employees with between 10 and 14 years of service, such employees will receive 16 days vacation, and so forth.

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