Mexico Proposes Gradual Reduction of the Statutory Workweek

Overview of the Proposed Reform

Mexico is moving forward with a significant labor law proposal aimed at modernizing working time standards. The initiative seeks to reduce the maximum statutory workweek from 48 hours to 40 hours, aligning Mexico more closely with international labor practices and strengthening work life balance protections.

The proposal has been formally introduced at the federal level and is expected to be debated as part of broader amendments to the Federal Labor Law and related constitutional provisions. Employment law experts generally view the reform as a structural update rather than a short-term policy adjustment, signaling a long-term shift in how working time is regulated in Mexico.

Phased Implementation Timeline

Legal and employment law commentators emphasize that the proposed reform is designed to be gradual, providing employers with predictability and sufficient lead time. While final legislative approval is still pending, the anticipated timeline under discussion includes incremental reductions beginning in 2026 and concluding in 2030.

• 2026: Transition and preparation phase under current 48-hour framework
• 2027: Reduction to a 46-hour workweek
• 2028: Reduction to a 44-hour workweek
• 2029: Reduction to a 42-hour workweek
• 2030: Full implementation of a 40-hour workweek

This staged approach is intended to allow employers to adapt staffing models, productivity expectations, and operational coverage without sudden disruption.

Key Legal Features Under Consideration

• Preservation of compensation: Employers may not reduce salaries or statutory benefits as a result of the shorter workweek.
• Overtime framework: Updated limits on permissible overtime hours, including enhanced premium pay for additional hours worked.
• Worker protections: Explicit prohibitions on overtime for minors and clearer daily working hour caps.
• Timekeeping requirements: Potential mandates for electronic time and attendance systems to ensure transparency and enforcement.

Employment law specialists note that these measures are designed to reinforce compliance, particularly in environments where flexible or remote work arrangements are increasingly common.

Expert Perspectives on Employer Impact

Legal experts broadly agree that the reform reflects a balance between employee protections and business continuity. The gradual implementation timeline is seen as critical in enabling employers to reassess workforce allocation, shift structures, productivity metrics, and internal policies.

Advisors also highlight that employers will need to ensure internal alignment across HR, payroll, and legal teams. Accurate tracking of working hours and overtime will become increasingly important, particularly for companies managing distributed or remote teams.

Implications for Foreign Employers Hiring Remote Talent in Mexico

For foreign companies employing remote workers in Mexico, the proposed reform underscores the importance of aligning employment arrangements with local labor law standards. Mexican labor law applies regardless of where the employer is based, and remote work does not exempt companies from compliance obligations.

• Review employment contracts to ensure working hours, overtime, and compensation terms align with Mexican law.
• Confirm proper employee classification to avoid misclassification risks.
• Update time tracking and reporting processes for remote teams.
• Monitor legislative developments to prepare for phased implementation.

How Tarmack Supports Compliant Hiring in Mexico

Navigating evolving labor regulations can be complex for foreign employers. Tarmack, as an Employer of Record in Mexico, helps companies hire and manage remote talent compliantly without the need to establish a local entity.

• Issue compliant Mexican employment contracts
• Manage payroll, statutory contributions, and benefits
• Ensure adherence to working time and overtime requirements
• Stay informed of regulatory changes and implementation timelines
• Reduce administrative burden and compliance risk

Conclusion

Mexico’s proposed reduction of the statutory workweek represents a meaningful evolution in labor regulation. While the reform introduces new considerations for employers, its phased design provides time for thoughtful planning and adjustment.

For foreign companies hiring remote talent in Mexico, early awareness and structured compliance strategies are key. Partnering with an experienced Employer of Record such as Tarmack allows businesses to navigate these changes efficiently, ensuring compliant hiring while supporting long-term workforce success.