2026 Labor Reform – Reduction of the Working Week – Decree Amending the Federal Labor Law (Official Gazette of the Federation, May 1, 2026)

The reform, which implements the constitutional amendment to Article 123 published on March 3, 2026, establishes a phased reduction of the maximum working week — from 48 hours in 2026 to 40 hours in 2030 — without any reduction in wages, salaries or benefits.

It also introduces a new overtime regime with significant operational impact, featuring two payment tiers and an absolute daily limit of 12 hours (ordinary and overtime combined), allows for the flexible distribution of working hours by mutual agreement between employer and worker, and requires employers to implement an electronic time-recording system as of January 1, 2027. Employers should review their individual employment agreements, update their internal work regulations, adjust their payroll systems and, where applicable, negotiate the distribution of working time with their unions in accordance with the transition schedule.

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