May 1 was celebrated as Labor Day, but Mexico did much more than that on that day full of symbolism: it began its path towards reduction of working hours of 40 hours with the entry into force of the law regulating the length of the day labor.
The change promoted by President Claudia Sheinbaum’s party does not represent a sudden change, but with the entry into force of the reform secondary working day opens an adaptation process for companies to modify the organization of their working hours to the new regulations.
From 48 to 40 hours in four steps. Mexico part of one of the work days longest in the world according to dOECD data. The current legal limit is 48 hours per week, a ceiling that has not moved since 1917. However, the reform seeks to lower it in stages until it reaches 40 hours per week: on January 1, 2027 the maximum limit will be 46 hours; It will drop to 44 hours a week in 2028, to 42 in 2029 and, finally, it will be set at 40 hours a week by 2030. Every year, two hours less.
The first step expires on January 1, 2027, which leaves companies room until that date to reorganize shifts, contracts and processes. All this without the workers see their salaries or benefits reduced current, something that itself Federal Labor Law expressly prohibits.
The duties that the reform brings. The publication of the labor reform Mexican not only activated the calendar. The new legislation establishes as an employer’s obligation to keep an electronic record of the working day, which in Mexico is popularly known as a time clock. That obligation comes into force on January 1, 2027 and It is not a simple procedure.
The Ministry of Labor and Social Security (STPS) will have access to this data to verify that the working hours are truly respected. Penalties for not having the registration in order they are already set and range between 29,327 and 586,550 pesos (between 1,431 euros and 28,624 euros at the exchange rate), equivalent to between 250 and 5,000 times the Unit of Measurement and Update. In addition, the STPS must develop mechanisms to collect and evaluate data on how the reduction in working hours is applied.
Most companies have not yet moved. The diagnosis of the real state of preparation of companies is not encouraging. The data from a study from EY published by Yucatan Diary with 165 companies in Mexico reveals that 72.7% are in what the analysts themselves call “tactical paralysis”: they know the details of the change of day, they have followed it closely, but they have not yet taken any concrete steps towards its application. Only 18% of companies consider that they are really prepared to apply the new labor regulations.
As explained Yeshua Gómez, associate partner of People Advisory Services at EY México to Expansion“companies are not waiting because they do not understand the reform. They are waiting because they do not know how much it will cost them to implement it.” 85% identify cost as the main obstacle to starting to take action, while 71% recognize that they regularly depend on overtime to sustain their daily operations. For these companies, the challenge is not to spend 48 to 46 hours on paper, but to do it from real days that already frequently exceed the 48-hour limit.
More limited working hours, but with more overtime. The reform has also modified the definition of the working day, establishing the daytime workday at a maximum of eight hours, the nighttime workday at seven hours, and the mixed workday could reach seven and a half hours. The only (and important) exception to this rule is that the day could be extended due to extraordinary circumstances.
This overtime, on the other hand, is also gradually extended: up to 9 hours during 2026 and 2027, 10 hours in 2028, 11 hours for 2029 and a maximum of 12 hours for 2030. The objective is that the transition to the change in working hours does not suddenly hit the sectors most dependent on extra work, and to offer them tools to optimize the working day of their employees, even if it is at the cost of pay up to three times more expensive every extra hour.
Image | Unsplash (Jesus Herrera, Kaden Taylor)
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