Importantly, the reduction in working hours must not result in any decrease in employees’ salaries, wages, or benefits.

III. ELECTRONIC TIMEKEEPING OBLIGATION

The reform introduces a new obligation for employers to maintain an electronic timekeeping system through which employees record the start and end of their workday.

Key considerations include:

• Employers must provide such records to the labor authority upon request.
• The Ministry of Labor and Social Welfare (STPS) is required to issue implementing regulations, including applicable exceptions, no later than January 1, 2027.
• The electronic records will constitute full evidentiary value in labor proceedings.
• Failure to comply may result in fines ranging from 250 to 5,000 Measurement and Update Units (UMA).
• These provisions will become effective on January 1, 2027.

IV. WORKING DAY REGULATIONS

The reform maintains the existing legal definition of a working day as the period during which the employee is at the employer’s disposal.

Additional provisions include:

• The distribution of working hours may be agreed upon by mutual consent between employer and employee.
• The classification of shifts remains unchanged:

• • • Day shift: 6:00 a.m. to 8:00 p.m. (maximum 8 hours)
    • Night shift: 8:00 p.m. to 6:00 a.m. (maximum 7 hours)
    • Mixed shift: Combination of the above (maximum 7.5 hours; if night work exceeds 3.5 hours, the shift is considered night)
• The prohibition of excessive or inhumane working hours remains in force.
• Employees are entitled to a minimum 30-minute break during continuous work periods; if they cannot leave the workplace, such time is considered compensable working time.

V. OVERTIME RULES

The reform restructures overtime regulations as follows:

• Total daily working time (including overtime) may not exceed 12 hours.
• Weekly overtime is capped at 12 hours.
• Overtime may be performed up to 4 hours per day, for a maximum of 4 days per week.
• The first 12 hours of overtime per week must be compensated at double pay (100% premium).
• Overtime exceeding 12 hours per week must be compensated at triple pay.
• Employees are required to work overtime within the legal limits.

VI. WEEKLY REST AND HOLIDAYS

The reform preserves existing rules regarding rest days and holiday compensation:

• Employees are entitled to at least one paid rest day for every six days worked.
• Rest day compensation is proportional when employees do not work a full week.
• Work performed on rest days must be paid at double rate.
• Employers should endeavor to grant Sunday as the weekly rest day; if worked, an additional 25% premium applies.
• Employees working on statutory holidays are entitled to double pay.
• Flexible arrangements for rest days remain permissible in continuous operations.

VII. PRACTICAL CONSIDERATIONS FOR EMPLOYERS

Given the gradual implementation, employers are advised to:

• Conduct operational and workforce planning during 2026 to prepare for the reduction in working hours.
• Review employment agreements, policies, and collective bargaining agreements to ensure compliance.
• Evaluate staffing needs and cost implications associated with reduced hours and increased overtime costs.
• Prepare for the implementation of compliant electronic timekeeping systems ahead of the 2027 deadline.
• Monitor forthcoming regulations from the STPS, particularly regarding the scope and exceptions of the electronic record requirement.

VIII. CONCLUSION

The reform represents a significant shift in Mexico’s labor framework, with substantial operational and financial implications for employers. Early planning and compliance measures will be essential to ensure a smooth transition and mitigate legal risks.

Please let us know if you require assistance in implementing these changes or adapting your internal policies and agreements.

Any questions or doubts regarding this bulletin should be directed to:

Alfonso González
agu@cmgdlaw.com