The reform proposal for reducing the number of hours in the workweek in Mexico to 40 hours must include a minimum of four fundamental elements for its effective implementation: gradualness, flexibility, sectorization and tax incentives, said Óscar de la Vega Castillo, partner at the De la Vega y Martínez Rojas Law Firm.
After analyzing the different initiatives discussed in the six forums organized by the Department of Labor and Social Welfare (STPS), the specialist pointed out that these meetings in themselves already represent significant progress in the legislative process.
“After the successful completion of the six forums for dialogue in several cities in the country (Mexico City, Monterrey, Guadalajara, Tijuana, Querétaro, and Cancún), the STPS is getting prepared to present a consolidated proposal that reflects the concerns and needs of both workers and employers, which will center on four fundamental aspects for its implementation”, De la Vega Castillo recalled.
Additionally, he remarked on the openness shown by the Federal Government in listening to all sectors, which has permitted the obtainment of a comprehensive view of the benefits and challenges posed by this reform. “Dialogue between sectors is crucial for reaching agreements that benefit the workers but also allow companies to maintain productivity”, he said.
Among the key elements that have emerged for the bill we have:
- Gradual implementation;: A gradual reduction of the number of working hours is projected, until 40 hours are reached in 2030. The first reduction could begin in 2026, reducing to 46 hours, and it would continue every two years.
- Flexibility in time scheduling: The possibility of implementing models like “time-for-time” or working hours by month are being analyzed, adapting labor schemes to the specific needs of each industry.
- Sectorization of the reform: It is acknowledged that the application of the reduction of working hours cannot be uniform for all sectors. Differentiated schemes that take into consideration the specificities of industries, such as manufacturing versus offices, for example, will be sought in order to ensure effective and fair implementation.
- Tax incentives for overtime: The possibility of including tax benefits that make the payment of overtime more attractive are being evaluated, particularly when current limits are exceeded.
De la Vega also pointed out that, in order to achieve a successful transition, it will be necessary to commit to:
- Personnel training: Companies must strengthen their workers’ capabilities in order to guarantee productivity with the new working hours. The government could offer support in this area.
- A change in mentality: The reform seeks to eliminate the belief that more hours worked are equivalent to more productivity, promoting, in its place, an approach based on efficiency and work-life balance.
It is worth noting that the STPS continues working on the integration of the proposals gathered in the forums. A preliminary document with the progress on the bill is expected to be presented on July 30.
On September 1, the Federal Government will present a formal reform proposal, which will have prioritary status in the legislative agenda.
Lastly, De la Vega Castillo called for close monitoring of the process, to ensure that the bill includes measures that benefit both workers and employers of different sizes and sectors.
