Mexico: Reform Reducing the Weekly Working Hours to 40

This reform to the Law is very important for both, the labor and employer sectors. It entails substantial challenges in its implementation and in ensuring a balanced harmonization between increased rest time for workers, and the need to minimize any adverse impact on business productivity. This necessitates a careful determination of the scope and interpretation of certain provisions contained in the reform initiative.

The recent reform to the Federal Labor Law regarding working hours, represents one of the most significant changes in the Mexican labor system, not only due to the gradual reduction of the weekly working hours from 48 to 40 hours by the year 2030, but also, due to the profound transformation in how companies must manage, document, and substantiate working time.

Beyond the adjustment of working hours reduction, the reform introduces a new concept of a maximum weekly working schedule, which creates significant operational challenges in the allocation of working time, particularly in sectors with continuous shifts, rotating schedules, or cumulative work schemes. Additionally, new limits are established, such as a cap of 12 working hours per day, including overtime, thereby reducing traditional operational flexibility.

In parallel, the reform introduces a high-impact obligation: the electronic recording of working hours, which must accurately document the start and end of each employee’s working day, and be available to the authorities at any time. This requirement, mandatory as of 2027, transforms attendance control into a legal, auditable, and sanctionable element, with fines that may reach up to 5,000 UMAs (approximately USD 33,500).

This change is structural, as it eliminates informal labor control schemes and shifts the burden of proof in labor disputes: in the absence of reliable records, the worker’s own account shall prevail, thereby increasing the risk of liabilities related to overtime or other benefits.

Furthermore, compliance does not distinguish between work modalities, therefore, applies equally to on-site, remote, hybrid, trust-based, or results-oriented work arrangements, requiring companies to reassess their operational models and adopt technological solutions that ensure traceability and availability of information.

In this context, the transition period during 2026 for the implementation of the electronic working time registry represents a critical window for companies to conduct assessments, adjust contracts, redesign work schedules, and implement control systems.

Taken as a whole, the reform not only reduces working hours, but also requires an active, measurable, and verifiable management of working time, making compliance a strategic component of business operations.