The reform that seeks to reduce the workweek from 48 to 40 hours will be on a legislative adaptation phase in 2026 and, therefore, “This will be a transition period in which an effective reduction is not contemplated”, explained lawyer Karla Martínez Santistevan.
The bill presented by President Claudia Sheinbaum is expected to enter into force on January 1, 2027 and to reduce two hours per year until 2030.
According to the associate at De la Vega y Martínez Rojas, “this year will be key for employers to adjust processes, evaluate productivity schemes, and reorganize operations.”
The challenges
The bill proposes making the current cap of 9 hours of overtime per week more flexible, until 12 hours are reached in 2030. For now, overtime will continue to be paid according to the current regulations: double the hourly rate up to the permitted limit and triple if the limit is exceeded.
“The intention is not to normalize excessive work hours, but to allow an orderly transition of costs and operation. Success will depend on the optimization of worked time”, she said.
It also poses challenges , such as implementing mandatory electronic record-keeping; implementing the phased reduction of the workweek until 2030. The biggest challenge is for sectors that require skilled labor, as there is currently a shortage of talent.
She explained that companies like Walmart and 3B are seeking to anticipate the changes and have already implemented internal pilot programs in order to be prepared.
Martínez, however, envisages at least three major challenges: The impact on operation costs will be higher for SMEs and small employers; in order to have access to skilled labor, it will be essential to invest in training and talent attraction strategies; and the risk that employers will resort to informality in order to reduce their burden.
She said that, for now, it is not possible to say whether there will be layoffs or not. In fact, the proposal does not include any special or transitory regime that justifies layoffs resulting from its implementation, she explained.
Which sectors will be the most affected?
The lawyer recalled that the private sector has been anticipating this change for some time; large scale companies, particularly, many of which have already implemented internal pilot programs in order to be prepared; this is the case of Walmart and even 3B.
Nevertheless, she envisages at least three major challenges.
- – The impact on operating costs, which will be significantly greater for SMEs, micro-enterprises, and small employees.
- – a shortage of skilled labor, particularly in specialized industries, which will make it essential to invest in continuous training and talent attraction strategies.
- – the risk of some employers resorting to informality, as has happened with other relevant reforms, in order to reduce the economic burden.
Are layoffs expected?
Martínez explained that at this point it is not possible to say with certainty whether layoffs deriving from adjustment to working hours will take place or not. This in spite of the President stating that there will be no layoffs and the opposition saying that there will be layoffs.
But she did explain that, historically, major changes in labor matters have been accompanied by staff reductions in certain sectors.
What can a person do if they are fired and believe that the dismissal is related to these labor pressures?
She noted once more that the bill does not include any special or transitory regime that justifies layoffs resulting from its implementation.
In this sense, she explained that any layoff relating to this pressure must be considered as unjustified, with the corresponding legal consequences.
Therefore, workers will have the right to receive the compensation provided by law and by the Constitution and, in the event of not receiving the corresponding payment, they can go to the corresponding Federal Center or Labor Conciliation and Registration agency and, if necessary, subsequently file a procedure before the competent Labor Courts.
