Mexico City Begins Inspections of Digital Platforms

Mexico City has entered a new phase in enforcing labor legislation for digital platforms, moving from an institutional guidance period to formal inspections to verify employer compliance. The Ministry of Labor and Employment Promotion is conducting targeted reviews of working conditions, focusing on issues such as recognition of employment relationships, classification of income as wages, registration of working hours and access to benefits. Authorities said the inspections will help clarify legal criteria, detect noncompliance patterns and strengthen oversight in a sector characterized by rapid growth and limited social security coverage among workers.

Mexico City has begun a new phase in enforcing labor legislation for digital platforms, shifting from an institutional guidance period to formal inspections aimed at verifying compliance with employer obligations.

The reform, implemented last year in coordination with companies such as Uber, DiDi, Rappi, and Mercado Libre, aims to strengthen worker rights while preserving the flexibility of app-based work models, reports MBN. This reform is part of the package of amendments to the Federal Labor Law (LFT) contemplated under the 2025–2026 labor agenda, which seeks to update the regulatory framework in response to emerging forms of work organization, including digital platforms, explains Lorenzo Roel, President of the Labor Commission, Business Coordinating Council (CCE).

The legislation introduced key protections for digital platform workers, including coverage for work-related risks, protection against unjustified dismissals, and transparency regarding algorithmic management. Workers earning at least the equivalent of one monthly minimum wage also gained access to IMSS services. These include medical care, maternity and sick leave, daycare services, and retirement savings, reports MBN.

Just weeks into the pilot phase of Mexico’s labor reform for digital platforms, authorities reported that about 350,000 drivers and couriers had been enrolled in the Mexican Social Security Institute (IMSS).

Mexico City recorded a sharp rise in formal employment in July 2025. According to the STyFE, the city saw the addition of 619,993 new formal jobs in July 2025, representing a 17.9% increase compared to the previous month. The largest gains in employment were recorded in the transport and communications sector, which added 377,305 jobs, and in business and personal services, which added 220,880 jobs. These two sectors accounted for 96.5% of the total increase in formal employment in Mexico City, reports MBN.

The inspections, carried out by Mexico’s City Ministry of Labor and Employment Promotion (STyFE), mark the start of a strategy focused on reviewing general working conditions in strategic sectors of the capital’s economy. Inés González, Minister, STyFE, said the initiative will be expanded progressively as part of a broader effort to strengthen labor policy in Mexico City.

The move follows reforms regulating work performed through digital platforms. Authorities said the capital is advancing in the implementation of these changes by consolidating a supervision model centered on enforcing labor rights. González said the approach establishes a precedent at both the national and regional levels.

During a recent inspection, officials identified differences in the interpretation of core elements of the reform. Among the issues detected were the recognition of an employment relationship between platforms and service providers, the classification of income as wages, the registration of working hours and the breakdown of benefits.

According to the labor authority, these discrepancies open a process of legal definition that is expected to clarify how the law should be applied in practice. The process is also intended to strengthen enforcement criteria in a sector that has grown in scale and complexity in recent years.

Preliminary information gathered during inspections indicates that the platform-based workforce in Mexico City is predominantly male. Authorities also found that a limited proportion of workers operating through digital platforms are registered with the social security system relative to the total number providing services.

González said the findings show the need for active and specialized labor oversight to ensure the full application of rights established under current legislation. She described labor inspections as the central mechanism for guaranteeing compliance in emerging sectors of the economy.

The information collected during inspection procedures is being used to identify patterns of noncompliance, design corrective actions and inform public policy decisions. Officials said the objective is to align regulatory measures with the real working conditions faced by platform workers.

By advancing targeted inspections, the Labor Ministry aims to consolidate a labor policy framework capable of responding to structural changes in the labor market. Authorities said the strategy seeks to position labor inspection as a strategic instrument for upholding labor justice, protecting rights and promoting decent working conditions across all sectors of the city’s economy.

The shift from guidance to enforcement signals a new stage in the city’s approach to regulating platform-based work. As legal criteria are clarified and inspections broaden, the outcome of this process could shape how digital labor reforms are implemented in other jurisdictions in Mexico and Latin America.

This reform aligns with broader international trends aimed at strengthening regulatory frameworks for digital platform work. Last year, the International Labour Organization (ILO) developed a global policy tracker to compile legislative initiatives related to digital labor platforms, with the objective of supporting governments, employers and workers in responding to the sector’s rapid expansion.

According to the organization, consolidating reliable information on existing regulations can contribute to shaping a future of work that balances innovation with decent working conditions. The ILO notes that while digital platforms have created new markets and income opportunities worldwide, they have also transformed how work is organized, raising policy questions related to earnings, social protection, occupational safety and health, and collective bargaining rights.