Mexico's Workweek Cut Nears, But Only 18% of Companies Are Ready

Mexico's workweek falls from 48 to 46 hours on Jan. 1, 2027, the first step toward a 40-hour standard by 2030, yet only 18% of companies report full readiness, according to Kelly and EY. Employers across manufacturing, logistics, and services must redesign shifts, contain labor costs, and implement electronic time registries whose STPS operating rules remain unpublished. SMEs face the highest cost exposure, while larger employers are prioritizing schedule reorganization and productivity over new hiring.  

Mexico's first legal reduction of the workweek takes effect on Jan. 1, 2027, lowering the weekly limit from 48 to 46 hours. With three months left, only 18% of companies consider themselves fully prepared, according to Kelly's Tendencies of the Work Environment (TELM) study.

The readiness gap reflects how much operational change the reform requires. Kelly's study finds that companies expect to reorganize schedules and shifts, absorb higher labor costs from additional hiring, and invest in automation. The weight of these adjustments differs by company size. "Small companies may be the most anxious about how to proceed because they do not have enough staff, and hiring more people to cover additional shifts will be a heavy economic cost. For large companies, it involves calculating how to rebuild and reorganize their operating dynamics," says Dulcinea Martínez, President, ERIAC Capital Humano. 

The transition stems from a constitutional amendment to Article 123, published on March 3, 2026. It was followed by secondary changes to the Federal Labor Law (LFT), published in the Official Gazette of the Federation (DOF) on May 1, which gave employers seven months to adapt. After the first cut, the Ministry of Labor and Social Welfare (STPS) calendar sets a two-hour reduction every Jan. 1: 44 hours in 2028, 42 in 2029, and 40 in 2030. The reform prohibits cuts to wages or benefits. The weekly overtime cap paid at double rate will rise gradually from nine hours to 12 hours by 2030.

Awareness of the process remains limited on both sides of the employment relationship. A survey by OCC shows that 59% of employees in Mexico do not know how the transition will work. On the corporate side, Kelly's study finds broad acceptance, with 55.2% of companies in favor of the change. Preparation lags behind that support: 17.8% of companies report being fully ready and a similar share partially ready, so planning extends to no more than 36% of organizations. This places 38% of companies nationwide in a "risk" zone because they lack visibility and control over their current shift models.

Compliance adds a second layer of pressure. The LFT now requires employers to keep an electronic record of hours worked for each employee, including start and end times, and to provide it to authorities on request. Noncompliance carries sanctions. These records will be central in labor disputes and during STPS inspections, where the burden of proof falls on the employer. However, the STPS has not yet published the general provisions defining the registry's scope, technical requirements, and exceptions, even though they are scheduled to take effect on Jan. 1, 2027.

That regulatory gap shapes how companies prepare. "The worst-case scenario is that labor costs rise too much," says Alejandro Navarro, Director General, Western Industrial Relations Association (ARIOAC). He says the most advanced companies are reorganizing roles and trying not to rely on overtime to offset the lost hours. "It is a strategy of rearranging schedules," he adds. Navarro notes, however, that without the authority's guidelines for the electronic registry, most companies are preparing without knowing all the rules.

Survey data point to schedule redesign rather than headcount growth as the main adjustment path. In Kelly's study, 36% of companies identify the reorganization of schedules and shifts as the reform's largest impact. Only 20% expect higher costs from new hiring. A Willis Towers Watson (WTW) survey shows a similar pattern: among companies that anticipate talent availability challenges, 70% plan to redistribute schedules and the rest plan to hire additional staff.

Sector-specific responses are also taking shape. In logistics, distribution centers and warehouses face pressure to cover the two weekly hours lost in 2027. Warehouse management system (WMS), incentive schemes, and service-level agreements can help businesses raise output without breaching the new limits, says Dicka Logistics' Jonathan Albanil. 

Talent management specialists also frame the reform as a lever for productivity. "By reducing working time, companies can rely on technology to minimize routine activities and make better use of talent. It can even open new employability scenarios and skill needs to complement the dynamic," says Martínez.

For Navarro, the 2027 reduction places productivity management among the main items on the human resources agenda. "If we want to avoid increasing headcount and achieve this with the people we already have, we need to talk about productivity in both operational and administrative areas," he says.