Reforming Mexico's Workweek Discussion Starts Soon and Employers’ Voice Needs to Be Heard
On June 2nd, Congress will start the discussions on the long-awaited reform to reduce the workweek from 48 to 40 hours. The Ministry of Labor will hold forums across various cities until July 7, inviting diverse stakeholders to share their thoughts.
HR Policy Global’s Take: Although reaching a final agreement will take time, employers should actively monitor the process and share their comments with the government when applicable.
Significant impacts on employers: Companies must consider the financial and operational implications of this change.
Businesses may need to adjust by extending workdays with overtime or hiring more staff — both costly options, especially with the new excessive overtime law.
Currently, wages are accounted for daily rather than hourly and are customarily paid out weekly. More flexibility is needed in hourly contracts to mitigate economic impacts.
President Claudia Sheinbaum announced that the transition will be gradual, with full implementation expected by 2030.The intention aims to give employers more time to adapt, but in practice, it may create more work since the changes occur annually.
What's next: The Ministry of Labor will hold forums across various cities until July 7, inviting diverse stakeholders to shape a fair and effective labor model.
Labor organizations have welcomed the announcement, emphasizing the need for further improvements in job quality and pension systems.
Employers need to step up and bring their thoughts during reform discussions to balance costs and maintain workforce levels.
Wenchao Dong
Senior Director and Leader, HR Policy Global, HR Policy Association
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