Labor reform 2026–2030: toward the gradual reduction of the workweek in Mexico

On December 3, two initiatives with draft decrees were submitted to the Senate: one proposes to amend and add various provisions to article 123, Section A, of the Political Constitution, and the other proposes to amend, add, and repeal various provisions of the Federal Labor Law.

Constitutional reform

The draft decree to reform the Constitution establishes that the work week shall be forty hours and that, for every six days of work, employees shall be entitled to at least one day of rest with full pay.

With regard to overtime, the proposal includes:

• Double overtime: a constitutional limit of 12 hours per week, which may be distributed up to 4 hours per day, not exceeding four times in a week, with compensation at 100% above the regular hourly wage.
• Triple overtime: if additional overtime beyond the established limit is required, the employer must pay 200% above the regular hourly wage.

It also expressly prohibits workers under 18 years of age from performing overtime.

To achieve this, the constitutional initiative specifies, in its transitory articles, a gradual reduction of two hours per year between 2026 and 2030, as follows:

• By 2026, the established working week will be 48 hours.
• As of January 1, 2027, the established working week will be 46 hours.
• As of January 1, 2028, the established working week will be 44 hours.
• As of January 1, 2029, the established working week will be 42 hours.
• As of January 1, 2030, the established working week will be 40 hours.

Once published in the Official Gazette of the Federation, the initiative grants Congress 90 days to enact reforms to secondary legislation (Federal Labor Law).

For its entry into force, the constitutional initiative must be approved by two-thirds of both Chambers of Congress, ratified by the majority of state legislatures, and finally published in the Official Gazette of the Federation.

Reform of the Federal Labor Law

The initiative to amend the Federal Labor Law includes the following modifications:

• Article 3 Ter: Adds Section VIII, defining the concept of employer as any individual or legal entity that hires one or more workers to perform their duties in a subordinate manner.
• Article 58: Defines the workday as the period during which the worker performs subordinate activities for the employer, with the possibility of distribution by mutual agreement.
• Article 59: Establishes a maximum duration of the regular workweek of forty hours.
• Article 61: Determines that the daily workday shall be up to eight hours, without changes to daytime, nighttime, or mixed shifts.
• Article 66: States that the workday may be extended under extraordinary circumstances. In such cases, overtime must be paid 100% above the regular hourly wage. The maximum limit will be 12 hours per week, distributed up to 4 hours per day, for a maximum of 4 days per week.
• Article 68: Provides that, in cases where overtime exceeds the limit established in article 66, such time may not exceed four hours per week and must be paid 200% above the regular hourly wage. It also stipulates that the sum of regular and overtime hours may never exceed 12 hours per day.
• Article 132: Adds section XXXIV, establishing the employer’s obligation to keep an electronic record of work hours, preserve such information, and provide it to the authorities.

Likewise, its transitional provisions stipulate that the reform will come into force on May 1, 2026.

However, it specifies that the maximum overtime duration referred to in article 66 will also be reached gradually, establishing the following:

• For the years 2026 and 2027, the overtime duration is up to 9 hours.
• For the year 2028, the overtime duration is up to 10 hours.
• For the year 2029, the overtime duration is up to 11 hours.
• For the year 2030, the overtime duration is up to 12 hours.

It also establishes that the obligation to keep an electronic record of working hours will come into effect on January 1, 2027.

For this draft decree to come into effect, it must be approved by a simple majority in both Chambers of Congress, enacted by the Federal Executive, and subsequently published in the Official Gazette of the Federation.

Given this scenario, the approval of both initiatives represents significant challenges for employers, as they will have to adapt to the gradual reduction in working hours to 40 hours per week by 2030, which will require the reorganization of work schedules, production processes, and hiring schemes to remain competitive.

Additionally, employers in Mexico will have to bear costs associated with overtime pay, as well as comply with new obligations such as electronic record keeping of working hours, which will require investment in control systems and greater transparency before labor authorities. These changes will demand financial, administrative, and operational adjustments, as well as more efficient management strategy to balance productivity with respect for labor rights.