Mexico’s labor and employment framework is undergoing a significant transformation following the constitutional reform to Article 123 published on March 3, 2026, reducing the statutory workweek from 48 to 40 hours. As of April 8, 2026, legislative activity has shifted toward the implementation of this reform through secondary legislation, while Congress simultaneously reviews a broader set of labor initiatives introduced in recent weeks.

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The constitutional amendment to Article 123 establishes a gradual reduction of the workweek to 40 hours between 2027 and 2030, expressly prohibiting any reduction in employee wages or benefits. While said reform is already in force, its implementation depends on pending amendments to the Federal Labor Law.

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In this regard, it should be noted that the Senate has approved the amendment to the Federal Labor Law to reduce the standard workweek to 40 hours and regulate overtime. The project, now sent to the Chamber of Deputies, was approved on April 8th, 2026.  The key points of the reform include:
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• Ordinary work hours may be distributed by mutual agreement between employers and employees. The standard workweek will be 40 hours.
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• Overtime is paid at 100% above the ordinary hourly rate and cannot exceed 12 hours per week, with a maximum of four extra hours per day over four days.
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• The combined ordinary and overtime hours cannot exceed 12 hours per day. Employees are entitled to at least one paid day of rest per six days worked.
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• Employers must implement an electronic record of employees’ work hours. Non-compliance carries fines of 250 to 5,000 UMA (Units of Measurement and Update).
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• The reduction to a 40-hour workweek will be gradual: 48 hours in 2026, 46 in 2027, 44 in 2028, 42 in 2029, and 40 in 2030.
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According to the Senate, the reform aims to improve quality of life, increase productivity, and provide legal certainty to employees, without reducing their salary or benefits. Initially, more than 13 million workers will be affected by these changes.
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In parallel, Congress is reviewing a broader legislative agenda arising from multiple initiatives introduced during March 2026, reflecting an increased focus on employee well-being, workplace conditions, and labor transparency. Among the most relevant proposals is the incorporation of paid mental health leave into the Federal Labor Law, which would grant employees up to seven days of leave, up to twice per year, subject to medical certification, while limiting the employer’s ability to request detailed information regarding the underlying condition. Additional initiatives seek to establish formal mechanisms for the donation of vacation days, allowing employees to transfer accrued vacation days to colleagues facing extraordinary circumstances, potentially requiring employers to implement internal administrative systems to manage such transfers.

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Other proposals include the introduction of pay transparency obligations aimed at increasing visibility in compensation practices; tax incentives for companies in the audiovisual industry; the recognition of the right to digital disconnection, which could limit communications outside working hours and require the adoption of internal policies on employee availability; and the obligation for employers to disclose salary ranges in job postings to promote pay equity between men and women. These initiatives are at early stages of the legislative process and are currently under discussion in Congress.

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Additionally, the reforms on the prevention of workplace violence, in force since January 2026, are currently in the implementation phase and impose increased compliance obligations on employers, particularly regarding internal policies and training programs.

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In light of the foregoing, employers should proactively prepare for these developments and closely monitor the legislative initiatives currently under discussion, as well as any potential amendments to the Federal Labor Law.

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For any questions or comments, you can contact our expert team.