The debate on the reduction of the workweek in Mexico has gained momentum with the proposal to amend Article 123 of the Constitution to set a maximum limit of 40 hours per week, instead of the current 48 This initiative, which has already been approved in legislative commissions, may be gradually applied towards 2030.
Its objective is to improve the balance between labor and personal life for Mexican workers, who have one of the longest workweeks among OECD countries.
How does it affect overtime payment?
In accordance with the Federal Labor Law, the first 9 overtime hours are paid double and further overtime is paid triple. If the allowed weekly working hours are diminished, a worker will exceed such limit more easily, increasing overtime payments.
Specialists such as accountants and tax experts warn that this may significantly increase labor costs for companies, especially in those sectors with a high labor demand, such as the industrial, mining, contract manufacturing and automotive sectors.
Issues with hourly contracting
One of the main issues stated by experts is that current law does not clearly consider contracting by the hour. In many cases, a person working only two or three hours must receive the equivalent of a full workday.
This would limit the capacity of the companies to adapt to the new workweek without increasing their payroll or paying overtime, which may affect the creation of half-time or flexible hours jobs.
What is proposed to avoid affectations?
Labor attorneys, like Óscar de la Vega, deem urgent a complementary reform allowing legal hourly contracting and facilitating more flexible labor schemas. Otherwise, the measure may end up being counterproductive for workers and employees.
A gradual implementation towards 2030 has also been proposed, which would allow for the adjustment of labor structures, administrative processes and secondary regulations.
The reduction of the workweek to 40 hours represents progress in terms of labor rights, but its success will be dependent on additional legal and operating changes. Otherwise, the intention of benefiting workers may turn into less employment opportunities or a higher financial burden on companies.
