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Mexico's 40-Hour Workweek Law Presses Employers to Rework Schedules

New daily overtime caps raise litigation risk, prompting firms to adopt automated attendance systems to protect productivity.

Overview

  • The reform mandates a phased cut from 48 to 40 hours over five years with the first legal obligations set to begin January 1, 2027 and full transition by 2030.
  • Experts say the rule that daily overtime cannot exceed four hours will be the main source of labor disputes and requires precise records of start times, breaks and end times.
  • About 15.5 million formal workers will be affected and roughly 7.1 million of those work in small and medium-sized enterprises, which face steeper adjustment costs.
  • Surveys and company reports show 72% of firms expect staff-availability problems, 70% plan to change shift distributions and 30% intend to hire extra workers to keep output steady.
  • Retail is already running pilot programs to reorganize hours, and advisers warn delayed implementation of automated time controls will heighten legal and payroll risks for employers.