Mexico's Government Announces New Proposal to Reduce Working Time to 40 Hours Per Week

In commemoration of Labor Day, the Mexican government announced an important amendment to reduce the workweek from 48 hours to 40 hours progressively. This change is set to start this year and aims for completion by 2030.

The initiative is designed to align Mexico's labor standards with international norms and improve living conditions for the workforce.

To ensure the successful implementation of this reduction, the federal government has announced the creation of a national dialogue table, which will include representatives from various productive sectors, business chambers, labor unions and labor law specialists.

The objective is to generate consensus and define an operational transition model that can be applied nationwide. Dialogues are scheduled to take place from June 2 to July 7, 2025, before the regular legislative process begins.

The employer sector should start evaluating the potential risks and impacts of this initiative. A few key points to consider include the following:

• Progressive Reduction of the Workweek: This change will require structural adjustments in shift organization and operational coverage, especially in industries with continuous schedules or extended shifts.
• Increase in Overtime Costs: Without proper adjustments, companies might encounter a significant rise in overtime payments, putting added pressure on human resources (HR) departments.
• Redesign Hiring Schemes: It will be important to explore mechanisms such as hourly hiring, mixed shifts or staggered schedules to maintain productivity while adhering to the new regulations.

Please contact the authors for more information or assistance with designing and implementing a transition plan in accordance with the regulatory and operational framework required by this new stage of labor transformation in Mexico.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.