New Labour Paradigm in Mexico: Severe Penalties for Excessive Working Hours

published on 24 September 2024 | reading time approx. 2 minutes

In a historic step towards protecting labour rights, Mexico has implemented a significant reform that punishes those who impose excessive working hours with up to 12 years in prison. This measure seeks to eradicate abusive practices in the workplace and guarantee decent and fair working conditions for all workers. In this article, we will explain the details of this reform, its impact on the business environment and the implications for employers and employees.

Mexico has been known for having some of the longest work hours in the world, leading to recent concerns about the health and well-being of workers. Recent statistics indicate that a large portion of the workforce works more hours than allowed by law.

The new reform defines excessive working hours as any period of work exceeding 48 hours per week without the corresponding payment of overtime in accordance with the Federal Labour Law, for which the employer may face a penalty from 3 to 12 years imprisonment and a fine up to 5,000 and 15,000 days, which may be calculated in minimum wage days or UMAs (Units of Measurement and Actualization). These sanctions are aimed at those directly responsible for the company, generally those with authority and responsibility for labour management, which in practice, this could include directors and general managers, human resources managers, supervisors and line managers.

The opinion approved by the Congress of the Union clarifies that this crime of labour exploitation “must be interpreted in accordance with current labour legislation, which allows a person to work overtime and receive remuneration in exchange”. To provide greater security for workers, the reform includes anonymous reporting mechanisms and establishes protections against retaliation Therefore, employers now have the responsibility of documenting and justifying any overtime worked by their employees, ensuring that it is compensated.

Due to the above, the reform may have a significant impact on the business environment, forcing companies to reevaluate their labour practices and adjust their internal policies. To comply with the above, there is no better tool than ensuring compliance and protection of both employers and employees, through compliance audits on working conditions, through consultation on the implementation of scheduling policies, and in training in labour rights and on managing human resources in the workplace.