Workweek Reduction in Latin America: Lessons from Mexico and Colombia

Companies with operations in Latin America face an inescapable reality today: the reduction of working hours has moved beyond theoretical debate and become enacted legislation in the region's leading economies. In 2026, Mexico approved a constitutional amendment that will progressively reduce the workweek from 48 to 40 hours by 2030, while Colombia completed in July 2026 a similar process involving the gradual reduction of the workweek from 48 to 42 hours, beginning in 2023 and ending in 2026. The following discussion provides organizations with a regional presence the tools needed to anticipate risks, optimize their operational structures and turn regulatory compliance into a competitive advantage.

The International Context

The International Labor Organization (ILO) has promoted the progressive reduction of working hours since 1919, advocating a standard of 40 hours per week without a reduction in wages. Numerous countries with major economies, including France (35 hours), Ireland (39 hours), and Australia (38 hours), already operate under this framework, and international evidence confirms that fewer hours worked does not reduce output. On the contrary, it promotes operational efficiency, process innovation and competitiveness for companies that adapt in a timely manner. It can also strengthen talent attraction and retention, and improve worker well-being and health, factors that directly impact productivity and the long-term sustainability of organizations.

Latin America: A Turning Point

In Latin America, this discussion is particularly relevant, as the region records, on average, longer working hours than those observed in developed economies. Maximum legal workweeks of 48 hours, established in the early and mid-20th century, still predominate. However, the debate over the need for amendments promoting greater autonomy in working time has gained momentum in several countries.

Currently, Ecuador is one of the few countries in the region with a standard workweek of 40 hours (since 1980), while Brazil, El Salvador, Honduras, the Dominican Republic and Venezuela have 44-hour workweeks. In this context, Mexico joins Chile as countries in the process of implementing gradual reductions in their workweek, while Colombia has completed its reduction to a 42-hour workweek.

Implications for Mexico's Business Sector

In Mexico, the gradual reduction of the workweek represents a structural change in how companies manage their workforce, particularly in sectors with continuous operations or a high dependence on labor, such as manufacturing, logistics, transportation, retail, hospitality and services, as the workweek will be reduced by two hours per year until reaching 40 hours in 2030.

Among the key considerations for organizations are the following:

• potential increase in labor costs resulting from hiring additional staff or paying overtime
• need to reorganize shifts, schedules, and workloads to maintain operational levels
• review of productivity frameworks and organizational structures designed under models of greater labor availability
• adaptation of individual and collective employment agreements, internal workplace regulations and internal policies

Because of this landscape, various companies have begun developing preparedness strategies that include operational impact assessments, internal process redesign, optimization of work structures and the implementation of technological tools. In particular, electronic attendance tracking systems, productivity monitoring platforms and operational automation mechanisms are emerging as key elements in addressing this transition. For this reason, reviewing the experiences and strategies adopted across Latin America, accounting for the particularities of each sector, can offer useful guidance for decision-making and planning in anticipation of the changes this trend will likely require in Mexico.

Colombia: A Regional Benchmark

Colombia closed out an unprecedented process in July 2026: the gradual implementation of a maximum 42-hour workweek. It offers lessons for the region.

With the entry into force of the final phase of Law 2101 of 2021, Colombia completed on July 15, 2026, the reduction of its maximum workweek from 48 to 42 hours. The process was gradual: 47 hours in 2023, 46 in 2024, 44 in 2025 and, finally, 42 in 2026, without at any point entailing a wage reduction or affecting acquired rights.

The amendment seeks to improve work-life balance, strengthen talent attraction and promote results-based productivity models. However, for companies, fewer available hours has meant rethinking job functions, shifts, monitoring systems and how to ensure operational continuity.

The Colombian experience confirms that reducing hours does not automatically increase productivity. According to Natalia Camacho of Adecco Colombia, companies that leveraged the measure to redesign processes and adopt results-based management improved productivity by between 5 percent and 10 percent. In contrast, those that only adjusted schedules without modifying workloads or work methods experienced declines of up to 3 percent in per-worker performance.

Official data reinforces this cautious view. It is not possible to assert that the reduction automatically increased national productivity. Results vary depending on the adjustments adopted by each organization.

According to Colombia's National Administrative Department of Statistics (Departamento Administrativo Nacional de Estadística, or DANE), labor productivity per hour worked grew 2.44 percent in 2024 and 0.40 percent in 2025. However, labor productivity per employed person increased 0.76 percent in 2024, but fell 0.56 percent in 2025.

The conclusion is a prudent one: productivity per hour may improve with shorter workweeks, but this does not guarantee greater total output per worker. Multiple factors, including economic activity, investment, technology and training, influence these indicators, making it impossible to attribute their variations solely to the amendment.

The Colombian experience yields the following six key lessons:

• It is an organizational transformation, not a schedule adjustment. Companies must review processes, goals, workloads, shifts and leadership models.
• Productivity per hour is the key measure of success. Fewer hours do not produce better results on their own; the effect depends on eliminating unproductive time and managing by objectives.
• The impact varies by sector. Administrative areas have greater capacity for reorganization, while continuous operations or roles requiring a physical presence may require additional staff, with the consequent increase in costs and consumer prices.
• Technology and internal controls are indispensable. Automation frees up operational capacity, while reliable attendance and payroll systems reduce errors, unnecessary costs and legal risks.
• Advance planning mitigates risks. Simulating shifts, costs and staffing needs before each legal change allows for a smoother transition, supported by communication and training.
• Artificial intelligence (AI) distorts measurement. The rapid expansion of AI coincided with the reduction of the workweek; productivity improvements are not exclusively attributable to the labor reform.

Ultimately, fewer hours do not automatically mean higher productivity. Results depend on process redesign, technology adoption and management culture. Beyond regulatory compliance, the reduction is an opportunity to rethink talent management and business competitiveness.

Lessons for Businesses in Latin America

The evolution of working hours in Latin America, particularly based on the experiences of Mexico and Colombia, reveals trends that will likely shape the business agenda in the coming years. These trends include the following:

• The reduction of working hours is consolidating as a regional trend.
• Productivity will continue to be the primary measure of success.
• The reorganization of processes and operational structures will become increasingly relevant.
• Technology and automation are establishing themselves as key tools to facilitate the transition.
• Advance planning will enable more efficient risk management and the ability to seize opportunities.
• Comparative analysis across jurisdictions will continue to provide value for strategic decision-making.

The reduction of working hours represents a transformation that transcends the regulatory sphere and redefines how organizations manage their talent, operations and competitiveness. Its implementation demands a comprehensive vision that considers not only labor aspects, but also operational, financial and strategic implications.

In this environment, comparative experience and knowledge of trends observed in other jurisdictions are valuable tools for anticipating risks and designing more effective adaptation strategies.

Holland & Knight closely follows the evolution of these initiatives at the regional and international levels, drawing on the experience of global teams that have actively participated in analyzing and implementing similar reforms across multiple jurisdictions.

For more information on this topic and its impact on your company's operations, please contact the authors.

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.