Mexico Mandates Electronic Time Clocks for 40-Hour Workweek Transition

Mexico City — Mexico’s Chamber of Deputies unanimously approved a regulatory reform requiring employers to install electronic time clocks to monitor compliance with the new 40-hour workweek, marking a major step in the country’s labor overhaul.

The measure, passed with 441 votes in favor, aims to eliminate unpaid overtime and ensure a gradual reduction of working hours by 2030. The decree has been sent to the executive branch for publication in the Official Gazette of the Federation.

Mandatory Electronic Time Tracking

To close legal loopholes and guarantee the effectiveness of the shorter workweek, lawmakers determined that electronic time records will be the only admissible proof of an employee’s working hours.

Before the requirement takes effect, the Ministry of Labor and Social Welfare must issue general guidelines for the technical operation of these devices.

Hefty Fines for Noncompliance

Companies that fail to implement the time clocks or tamper with records will face fines based on the Unit of Measurement and Update:

• Minimum fine: 250 UMAs (approximately 29,327 Mexican pesos)
• Maximum fine: 5,000 UMAs (up to 586,550 Mexican pesos)

Official Timeline

The reform establishes a grace period for businesses to adapt:

• May 1, 2026: Reforms take effect
• May 1 to December 31, 2026: Adaptation period
• January 1, 2027: First mandatory reduction in weekly hours
• 2030: Full implementation of the 40-hour workweek (distributed over 5 or 6 days with at least one day off)

New Overtime Rules

The shorter standard workday also adjusts overtime regulations. Starting in 2027, overtime may increase from 9 to 12 hours per week, under strict mutual agreement in exceptional circumstances.

• Daily limit: Maximum 4 hours per day, spread over no more than 4 days per week
• 100% premium: The first 12 overtime hours are paid at double the regular wage
• 200% premium: Any hours beyond the legal limit are paid at triple the regular wage

The reform also empowers labor inspectors by providing unalterable evidence to penalize labor exploitation.