Less than three months remain before the first step of Mexico's workweek reduction takes effect. Although the reform has been in force since May, the change that will be felt in payroll, shifts and contracts begins on January 1, 2027, when the maximum workweek will drop from 48 to 46 hours. That same day, another obligation kicks in that many companies have not yet sorted out: the electronic record of each worker's hours.

At CounselHub, we see this last quarter of 2026 as the real window to get your house in order without rushing or facing fines. Here is a summary of what the law says and what you should do now.

Where the reform comes from

The process had two pieces. First, the constitutional amendment to article 123, published in the Federal Official Gazette (DOF) on March 3, 2026. Then, the decree amending the Federal Labor Law (Ley Federal del Trabajo), published in the evening edition of the DOF on May 1, 2026, which took effect that same day. That decree amended, among others, articles 58, 59, 61, 66, 67, 68, 69, 71, 132 and 994 of the law.

The transitional provisions set an adjustment period from May 1 to December 31, 2026, so that employers and workers can adapt their processes and work arrangements before the first reduction. In other words, the time to prepare is running and ends this year.

The reduction schedule

The reduction is gradual, two hours per year, and each step begins on January 1:

  • 2026: 48 hours per week.
  • 2027: 46 hours.
  • 2028: 44 hours.
  • 2029: 42 hours.
  • 2030: 40 hours.

The reform states explicitly that the reduction may not result in any decrease in pay, wages or benefits. It also keeps one day of rest for every six days worked with full pay and the Sunday premium of at least 25%.

Overtime: new caps

Overtime also changes. The weekly limit increases in steps: 9 hours in 2026 and 2027, 10 in 2028, 11 in 2029 and 12 in 2030. Those hours may be spread over a maximum of four days per week and up to four hours per day, and are paid at an additional 100% of the regular wage. Anything beyond the permitted limit is paid at an additional 200%.

For operations with long shifts or production peaks, this means that cutting regular hours and covering the gap with overtime has a cap and a cost that must be calculated now.

Electronic time records: the obligation that worries employers most

Section XXXIV of article 132 of the law requires employers, starting January 1, 2027, to keep an electronic record of each worker's hours that includes at least the start and end times of work. The Ministry of Labor and Social Welfare (STPS) will be responsible for issuing the general rules on this obligation.

An important point: according to an analysis published on September 2, 2026, by the Mexican Association of Public Accountants, those rules had not yet been published. Until the STPS issues them, the start date remains the same, so waiting for the guidelines before looking for a system could leave your company with no room to maneuver.

Failure to keep the record is punishable by fines of 250 to 5,000 times the Unit of Measure and Update (UMA). In addition, that record will be key evidence in any labor dispute over hours worked, so a reliable system also protects the company.

What it means for your company

The impact depends on the industry. For offices with 40 or 45 hour schedules, the first step may not require major changes, but the electronic record does apply. For manufacturing, logistics, retail and services with six day shifts, the reduction to 46 hours means redesigning schedules, reviewing how many people are needed per shift and recalculating the cost of overtime.

What we recommend doing in October, November and December

  1. Map your actual working hours. Identify which positions and shifts currently exceed 46 hours per week.
  2. Review individual and collective bargaining agreements. Clauses on schedules, shifts and overtime must be adjusted to the new cap without affecting wages or benefits.
  3. Update your internal work rules and your overtime authorization policies with the new weekly limits.
  4. Choose and implement the electronic time recording system before December, with pilot tests and training for supervisors.
  5. Project the cost for 2027 and the following steps through 2030 so you can budget for it in time.
CounselHub recommendation: do not wait for the STPS to publish its guidelines before acting. Implement now an electronic record that captures at least the start and end of each worker's day, keep backups and document in writing any schedule changes agreed with your staff. If your company works with collective bargaining agreements or rotating shifts, review those instruments before year end so that January 1, 2027, does not catch you with misaligned documents.

The workweek reduction is a reality with fixed dates. Companies that use this quarter to plan will reach January with clear costs, contracts in order and evidence ready for any inspection.