Mexico City.- The Supreme Court of Justice of the Nation today endorsed the reform to the Federal Labor Law that, starting in 2023, increased the days of paid vacation.
The Second Chamber of the Court unanimously denied the protection filed by the company GND Constructora, which alleged that the reform was retroactive, affects conditions agreed in the contracts with its workers and affects the creation of new jobs and investment by increasing payments for vacation bonuses.
The Court rejected these arguments and also considered that the Congress of the Union did properly found and motivate the reform, according to which every worker has the right to twelve days of paid vacation after completing one year in their position.
The reform also mandated an increase of two days of vacation for each year of work until completing the first five, and two more days for every five years worked, starting from the sixth year of employment.
“Employment contracts do not produce unchangeable conditions, as they are subject to review and, of course, to compliance with the provisions of mandatory regulations that establish a minimum of rights for workers,” the Court stated, approving a project by Minister Luis María Aguilar.
“(The reform) does not violate the principle of non-retroactivity, because it does not ignore any acquired right nor modify legal consequences determined in accordance with previous legislation that cannot be altered due to progress in the protection of the rights of the working class,” the ruling adds.
GND Constructora argued that Congress did not take into account the economic capacity of companies or the effects of increased financial and administrative burdens, but the Court responded that a labor reform of this type, regarding payment of vacation bonuses, is not subject to the principles of proportionality in contributions to public spending.
“It would be unacceptable to consider that Article 76 of the Federal Labor Law is unconstitutional for the sole reason that its implementation is not in accordance with the economic purposes of the complainant or because of the possible administrative or financial problems that it could cause,” the ruling states.
This is one of several reforms during this six-year term that have increased the financial and administrative burden on companies operating in the formal sector of the economy.
In November 2022, the Second Chamber also approved the reform to the Retirement Savings System (SAR), which came into force in 2023, by which the progressive increase in contributions to individual Afore accounts was almost entirely borne by employers, with no increases for workers or the government.
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