Mexico has begun a significant transformation of the rules applicable to working hours. The reform to Article 123 of the Constitution and the corresponding amendments to the Federal Labor Law (“FLL”) establish a gradual reduction of the maximum weekly workweek until reaching 40 hours in 2030, as well as new rules for overtime and working-time records.

The first effective reduction will begin on January 1, 2027. We recommend using the remaining months of 2026 to assess the impact and make the necessary adjustments.

1. Gradual Reduction of the Workweek

The maximum weekly workweek will be gradually reduced:

2026: 48 hours
2027: 46 hours
2028: 44 hours
2029: 42 hours
2030: 40 hours

As of January 1, 2027, companies currently operating a 48-hour workweek must reduce it to a maximum of 46 hours per week. The reduction will continue by two hours per year through 2030.

The reduction may not result in a reduction of wages, benefits, or labor rights.

2. Distribution of Working Hours

The reform does not automatically establish a five-day workweek. Weekly hours may be distributed in accordance with applicable statutory rules and permitted employer-employee arrangements, subject to daily limits and weekly rest requirements.

Each company should determine the appropriate distribution based on shifts, operational needs, and working conditions.

3. New Overtime Scheme

Under the definitive regime, working time may be extended due to extraordinary circumstances by up to 12 hours per week, distributed in up to four hours per day and on a maximum of four days during the week.

Overtime within the applicable statutory threshold is paid with a 100% premium over the ordinary hourly wage (double time). Excess overtime is subject to a 200% premium (triple time); payment itself does not authorize exceeding statutory maximums.

4. Transitional Overtime Rules 2027–2030

The transitional threshold for overtime paid at double time will be:

2026: 9 hours
2027: 9 hours
2028: 10 hours
2029: 11 hours
2030: 12 hours

Accordingly, during 2027 the applicable threshold will remain 9 weekly overtime hours at double time.

5. How Will This Work in 2027?

Maximum ordinary workweek: up to 46 hours per week.

Overtime within the transitional threshold: up to 9 hours per week, paid at double time.

Excess overtime: subject to the payment rules and statutory maximums under the FLL.

Companies must clearly distinguish ordinary hours, overtime at double time, and overtime at triple time.

6. Practical 2027 Example

If an employee subject to a 46-hour maximum workweek works 58 hours in a week:

46 hours: ordinary working time.
9 hours: overtime at double time.
3 hours: excess overtime subject to the applicable statutory regime and limits.

Triple-time payment should not be interpreted as authorization to work beyond a statutory maximum.

7. Electronic Recording of Working Hours

The reform incorporates electronic recording of working hours, including start and end times, subject to implementing rules and exceptions issued by the labor authorities.
Companies should review attendance systems and record retention to document ordinary hours, overtime, and proper payment.

8. Impact on Agreements and Internal Policies

We recommend reviewing individual and collective employment agreements; Internal Work Regulations; working-hours and attendance policies; overtime authorization procedures; recording systems; shifts; accumulated schedules; remote and hybrid work; payroll; overtime budgets; and additional hiring needs.

Particular attention should be paid to agreements that currently establish 48-hour workweeks.

9. Overtime and Ordinary Operations

Overtime should not become a permanent extension of the ordinary workweek. The FLL is based on the principle that extensions of working time arise from extraordinary circumstances.

Companies should avoid structures in which ordinary operations permanently depend on overtime.

10. Employees Under 18

Persons under 18 years of age should not work overtime. Companies employing workers in this age group should strengthen working-time controls.

11. What Should Companies Do During 2026?

1. Map current work schedules.
2. Identify critical operations dependent on 48-hour workweeks or recurring overtime.
3. Simulate the 2027–2030 impact.
4. Review employment agreements and Internal Work Regulations.
5. Establish clear overtime authorization, recording, and payment procedures.
6. Prepare electronic working-time recording systems.
7. Evaluate costs, shift reorganization, and additional hiring needs.

Conclusion

The reform entails a gradual transformation of the organization of working time through 2030 and will directly affect workweeks, shifts, overtime, payroll, employment agreements, Internal Work Regulations, recording systems, and labor costs.

We recommend developing an integrated 2027–2030 transition strategy during 2026.

Our team is available to conduct a Labor Working Time Compliance Review.

Alfonso González
agu@cmgdlaw.com