Increase in vacation days could decrease labor turnover in Nuevo León: Coparmex

Monterrey, NL. The entry into force of the new decree on vacations could generate an incentive among workers to increase their permanence in organizations, that is, reduce labor turnover, indicates an analysis of the Employers Confederation of the Mexican Republic (Coparmex) Nuevo León, with data from the National Occupation and Employment Survey of the Inegi.

In New Lion the rate of workers with seniority of more than five years was 37% last year, while at the national level it was 39 percent.

However, this indicator has improved in the state, since in 2012 the rate of workers with the aforementioned seniority it was 34 percent.

Currently, 63% of the workers -formal and informal subordinates- in the entity have a seniority of one to five years.

In this sense, the new decree on Vacations provides that workers in their first five years of employment can achieve the right to enjoy up to 20 days of vacation.

• Article 76.- Workers who have more than one year of service will enjoy an annual paid vacation period, which in no case may be less than twelve working days, and which will increase by two working days, up to twenty, for each subsequent year of service. As of the sixth year, the vacation period will increase by two days for every five days of services.
• Article 78.- Of the total period that corresponds to him in accordance with the provisions of article 76 of this Law, the worker will enjoy twelve days of continuous vacation, at least. Said period, the authority of the worker may be distributed in the manner and time required.

Cecilia Carrillo López, director of coparmex Nuevo León, pointed out that since the initiative to reform these articles was raised, the employer sector expressed its approval taking into account the additional cost that it will generate for the companies that must cover those days.

He explained that due to the dynamism of the labor market in Nuevo León, labor turnover exceeds that of the rest of the country.

“As there is a greater job offer, people seek the best possible job position. However, the reform could encourage workers to stay longer in their workplaces”, he highlighted.

Carrillo López added that it is necessary to remember that new companies need at least two years to be able to establish and maintain themselves.

“As there is greater creation of companies and employment, these percentages increase. That is why it is important to bring in new investments and support ventures and take care of what we have. Because institutional, formal and experienced companies achieve and contribute enormously to job and economic stability,” the board of directors pointed out.