Deputy Committees Approve Formalizing App Workers

Claudia Sheinbaum’s labor reform, aimed at formalizing workers in digital transportation and delivery platforms, has received unanimous approval from the Chamber of Deputies' committees. However, the opposition has raised concerns that it could lead to a significant reduction in workers' earnings. Additionally, Uber, DiDi, and Rappi have expressed concerns over issues such as the fiscal regime.

The proposed amendments to Art. 49, 50, 127, and 997-B of the Federal Labor Law were approved by the Chamber of Deputies' Committee on Labor and Social Welfare with 26 votes in favor and none against. The reform aims to grant platform workers essential rights, including severance pay equivalent to three months’ salary in the event of dismissal, access to profit-sharing, and eligibility for benefits under the Mexican Social Security Institute (IMSS).

With the reform, employers will be obligated to include platform workers in profit-sharing schemes, register them with IMSS, make contributions to the National Workers’ Housing Fund, implement training programs, and ensure compliance with regulations regarding the hiring of workers under the age of 18.

Despite unanimous committee approval, PAN deputy Paulina Rubio and PAN senator Patricia Mercado, along with PRI deputy Erubiel Alonso and PVEM deputy Gabriela Benavides, voiced concerns regarding the potential adverse effects on workers’ earnings. They stressed that the integration of platform workers into the social security system should not lead to a reduction in their income. 

Uber, DiDi, and Rappi have also raised concerns and called for a more inclusive dialogue with Congress to address issues surrounding the reform. A key concern is the fiscal framework for platform workers, as an inadequately designed system could negatively impact both workers and businesses. Another point of concern is the implementation of IMSS registration, with the platforms urging for transitional provisions to clarify the process. Additionally, these companies have emphasized the need for income opportunities for individuals without personal vehicles, advocating for accessible frameworks that would enable broader participation in the digital economy.