On May 1, 2026, a decree amending, supplementing, and repealing various provisions of the Federal Labor Law regarding the reduction of the workweek was published in the Official Gazette of the Federation (Diario Oficial de la Federación).

The reform entered into force on May 1, 2026. Pursuant to the transitional provisions, employers must implement the necessary adjustments to their processes and systems during the period from May 1 through December 31, 2026.

Key Amendments:

• Workday Distribution
  The workday may be distributed by mutual agreement between the employer and the employee.
  (Article 58 of the Federal Labor Law)
  
  
• Reduction of Weekly Working Hours
  The maximum workweek will be 40 hours, to be implemented gradually as follows:

• Overtime (Double Pay Overtime)
  Overtime may not exceed 12 hours per week, distributed up to 4 hours per day for a maximum of 4 days per week.
  (Article 66 of the Federal Labor Law)
  Gradual implementation:

• Excess Overtime (Triple Pay Overtime)
  Overtime exceeding the legal limits may not exceed 4 hours per week.
  Under no circumstances may the total of ordinary and overtime hours exceed 12 hours per day.
  (Article 68 of the Federal Labor Law)

New Employer Obligations

As of January 1, 2027, employers must:

• Implement an electronic time-tracking system for each employee.
• Record the start and end times of each employee’s workday.
  (Article 132, Section XXXIV of the Federal Labor Law)

The Ministry of Labor and Social Welfare (STPS) will issue general provisions governing implementation, as well as monitoring and evaluation mechanisms.

Failure to comply with the electronic record-keeping obligation may result in penalties ranging from 250 to 5,000 Units of Measurement and Update (UMA) (approximately MXN 29,327.50 to MXN 586,000).
(Article 994, Section IV Bis of the Federal Labor Law)

Conclusions

This reform requires employers to approach the reduction of working hours as a comprehensive process rather than a mere reduction in schedules. During the established period from May to December 2026, employers must adjust shifts, workloads, and operational schedules; a complex task in and of itself. Furthermore, they must update employment contracts and regulations, align policies, and configure attendance systems and their impact on payroll calculations, while ensuring consistency between mandatory employment records resulting from this reform and the payroll CFDI, as well as state and social security tax bases. 

Therefore, the implementation period must be used to the fullest to align operational, documentary, and technological processes and ensure regulatory and tax compliance.

Source: DOF - Diario Oficial de la Federación

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If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.