Mexico: Mexico Advances Dialogue on 40-Hour Workweek Reform

The Mexican government has taken a significant step forward in its labour reform agenda by organising a series of regional forums to promote the reduction of the standard workweek from 48 to 40 hours. The initiative, led by the Ministry of Labour and Social Welfare, is part of President Claudia Sheinbaum’s broader political commitments and aligns with global trends to enhance work-life balance, productivity, and labour rights.

Held between June 19 and July 7, 2025, the six regional forums brought together representatives from the public and private sectors, labour unions, academia, and civil society. These multi-stakeholder dialogues served as a platform to address the practical, economic, and legal challenges of the proposed reform.

 

Political and Legal Context

The proposal to reduce the workweek was initially introduced in 2022 by former congresswoman Susana Prieto and gained traction through social advocacy movements such as the “Frente Nacional por las 40 Horas.” While the previous administration paused its approval due to concerns over economic impacts and political consensus, President Sheinbaum has revived the initiative as part of her administration’s “Second Floor of the Transformation” commitments. Her government supports a gradual approach to implementation, ensuring adaptation and economic viability.

 

Key Forum Outcomes

The forums produced broad agreement on the benefits of reducing working hours, with several converging points across sectors:

• Gradual Implementation: All sectors support a phased application. While the private sector prefers a transition toward 2030, labour unions propose a shorter timeline of two to three years. Academic and international observers suggested regionalised and sector-specific pathways.
• Tax and Operational Incentives: Employers advocate for targeted support, particularly for micro, small, and medium enterprises. Recommended incentives include tax benefits, administrative simplification, and flexibility in working time arrangements such as hour banks and alternative schedules.
• Pilot Programs and Oversight: There was consensus on launching pilot schemes and establishing a tripartite commission to oversee the reform’s rollout, ensuring real-time feedback and adjustments.
• Legal Adjustments: The reform implies constitutional amendments to Articles 85 and 123, as well as updates to the Federal Labour Law (Articles 58–61).

 

 

Diverging Perspectives

Despite consensus on the reform’s objectives, stakeholders expressed varying degrees of concern:

• Private Sector: While supportive, business groups warned of a potential 6.7% reduction in GDP and a 15–20% increase in labour costs without proper planning.
• Labour Unions: Advocated for maintaining wage levels and strengthening workers’ rights, including guaranteeing two full rest days per week.
• Academia and International Organisations: Emphasised the socio-economic benefits and alignment with ILO standards but called for stronger mechanisms to boost formalisation and SME resilience.

 

Next Steps

The STPS is expected to present the official proposal on 1 September 2025. If approved by Congress, the reform could begin implementation as early as 2026. As Mexico prepares for this potential shift, employers and legal advisors must closely monitor the legislative process and prepare for compliance with a complex, multi-year transformation.