Holiday Vacations Clash With Compliance Pressures for Employers

Most workers in Mexico take time off in December, according to a new OCC survey, even as authorities intensify scrutiny of year-end labor practices and urge employers to avoid unjustified layoffs that disrupt benefits and compliance.

“In December, work closures coincide with personal commitments; planning workloads and rest periods in advance allows companies to maintain operations while enabling an orderly disconnection for employees,” says Karla Villanueva, Business and Market Intelligence Manager, OCC.

The findings come from OCC’s weekly “Labor Thermometer,” which surveyed workers across Mexico to assess vacation practices and workload perceptions during the holiday season. December often concentrates project closures, final deliverables, and performance targets, while personal obligations increase, complicating workforce planning. At the same time, the federal government has renewed calls for employers to comply with labor, social security, and housing obligations as part of a broader enforcement push tied to ongoing labor reforms.

According to the OCC survey, conducted between Dec. 16 and 22 among 1,768 participants, 62% of workers said they take vacations in December. Of that group, 38% reported doing so every year, while 24% said they take leave only if workloads allow. Another 25% said they never take days off during the year-end period, and 13% said vacations depend on managerial approval.

Perceptions of workload varied. Forty-four percent of respondents said workloads decline in December, attributing the drop either to the holiday season itself or to colleagues taking vacation. By contrast, 42% said workloads increase, and 14% reported no change. The mixed responses highlight uneven operational realities across sectors and companies, particularly those facing year-end deadlines or continuous operations.

The survey results intersect with heightened government attention on employment practices at year-end. The Ministry of Labor and Social Welfare (STPS), the Mexican Social Security Institute (IMSS), and the National Workers’ Housing Fund Institute (INFONAVIT) have jointly urged employers to avoid unjustified dismissals in December followed by rehirings in January, a practice authorities say undermines continuity of labor, social security, and housing rights.

Officials report that for a sixth consecutive year they have identified companies engaging in this pattern. In January 2025 alone, 142,398 workers were rehired by the same employer after being dismissed the previous month, according to official figures. Of the jobs lost between November and December 2024, 63% were registered as permanent positions, reinforcing the government’s assessment that many dismissals are not linked to legitimate temporary contracts. Authorities warn that such practices can lead to legal, administrative, and fiscal consequences affecting company finances.

As part of enforcement, the agencies have sent notices to employers considered at risk, urging reviews of workforce practices against current regulations. They have also expanded guidance and complaint channels through institutions including IMSS, INFONAVIT, PROFEDET, and the Federal Labor Inspectorate, signaling closer oversight as inspections increase.

Lawmakers are also debating broader structural changes. President Claudia Sheinbaum has presented a proposal to transition to a 40-hour workweek between 2027 and 2030, a reform projected to affect 13.4 million workers. The plan includes mandatory electronic time registration, increasing pressure on employers to adopt digital attendance and scheduling systems. Separately, legislators are considering expanding mandatory paid holidays from nine to 15, although the proposal remains under committee review.

Fernanda Cater, Country Manager, Sesame HR, says corporate wellness strategies are under reassessment as labor standards evolve. Programs that focus solely on office-based benefits may fall short if they do not address commute times, rigid schedules, or long workdays. Flexible hours, hybrid models where feasible, and alignment between wellness initiatives and operational realities are increasingly viewed as practical responses.

Together, the OCC survey and the government’s year-end warning reflect a broader shift in Mexico’s labor environment. While many workers disconnect during December, authorities are signaling that employment continuity and documented compliance must extend through the holiday season. For employers, balancing operational demands, vacation planning, and regulatory obligations has become a central year-end management task amid tightening oversight and ongoing reform.