Employers Should Prepare for Mexico’s Proposed 40-Hour Workweek: 6 Steps to Take Now

Una versión en español de esta Insight está disponible haciendo clic arriba.

The labor law framework in Mexico could undergo a significant shift this year, and employers should create an action plan while lawmakers work to finalize this big change. Specifically, Mexico may reduce the standard workweek from 48 to 40 hours by 2030, following President Claudia Sheinbaum’s proposal to the Senate in late 2025. Notably, the reform wouldn’t expand the number of rest days each week, as advocated by labor unions. Rather, it would keep the current model of one rest day for every six days worked. The administration has prioritized this plan, so it could be finalized soon with a phased implementation starting next year. Here’s what you need to know and how you can prepare.

Overview

Although efforts to reduce the workweek stalled in prior years, President Sheinbaum’s priorities include comprehensive labor reform. The latest workweek proposal is gaining traction, particularly given the Morena party's majority.

Data shows that Mexican workers average more hours per year than other member countries in the Organization for Economic Cooperation and Development (OECD). In 2024, for example, Mexican workers averaged 2,193 hours, while the OECD average was 1,736 hours. Many OECD countries average fewer than 40 working hours per week, with some nations like Germany, Denmark, and the Netherlands reporting averages as low as 30–35 hours per week.

The aim is to better align Mexico’s workweek with other nations. The proposal is still being reviewed by lawmakers, but is a priority for 2026.

Key Features of the Proposal

• Gradual Implementation: The current 48-hour workweek would decrease by two hours each year, starting in 2027, and reach 40 hours by 2030. Employers would not be allowed to reduce pay or benefits.
• Overtime Provisions: Voluntary overtime would be available for a limited amount of hours and days per week at double pay, but minors would be prohibited from working any overtime hours.
• Legal Framework: The reform requires amendments to the Mexican Constitution and the Federal Labor Law (LFT).
• No Additional Rest Days: The proposal does not include a second rest day, despite calls from unions and opposition parties for a five-day workweek. Instead, the six-day workweek would remain but with a standard of 40 hours.

6 Steps to Consider Taking Now

It’s a good idea to start reviewing employment contracts, schedules, and overtime policies to plan for compliance. Consider identifying the roles or departments most affected by the potential reduction in hours, with a focus on:

1. Reviewing Shift Scheduling: You may need to rethink shift rotations, overtime policies, and staffing levels to maintain productivity with fewer hours.

2. Calculating Labor Costs: While the government assures no reduction in wages, businesses should assess potential cost impacts from hiring additional staff or adjusting operational hours.

3. Aligning Documents: Employment contracts, collective bargaining agreements, and internal policies should be reviewed to align with the new law once enacted.

4. Productivity Planning: Explore automation, process improvements, and flexible work arrangements to offset reduced hours. Consider pilot programs to test new scheduling models before full implementation.

5. Transition Planning: Collaborate with HR and legal teams in Mexico to develop a transition plan. When the time is appropriate, be sure to clearly communicate changes to employees to manage expectations.

6. Regulatory Monitoring: Stay updated on legislative progress and secondary regulations, especially regarding overtime rules and penalties for noncompliance. Prepare to adjust timelines or requirements as changes and updates occur.

Industry Spotlight: Manufacturing, logistics, and customer service industries may face challenges in maintaining output with reduced hours. Incremental adjustments and process optimization will be key.

Conclusion

While the reform offers opportunities to improve employee well-being, it also requires careful planning regarding budgets, production, and compliance. We will continue monitoring developments as this proposal is considered. For more information on how this impacts your operations in Mexico, reach out to your Fisher Phillips attorney or the author of this Insight. Fisher Phillips Mexico is at your service to assist you with any questions related to this topic, as well as with any matter in labor law. Make sure you are subscribed to Fisher Phillips’ Insight System to have the most up-to-date information sent directly to your inbox.