Electronic Time Tracking and Mexico’s 40-Hour Workweek Reform

The reduction of Mexico’s statutory workweek from 48 to 40 hours will do more than reshape schedules. It will transform how companies measure, manage, and demonstrate compliance with working time.

During the Second Ordinary Session of the LXVI Legislature, Mexico’s Congress will discuss one of the most significant labor reforms in recent decades. All signs point to a fast-tracked legislative process, and it is expected that before 2027, Mexico will have a new legal framework that will impact millions of workers and virtually every organization in the country.

However, beyond the debate around productivity, well-being, or competitiveness, there is one element that has gone largely unnoticed and will be decisive for companies: the obligation to implement electronic time tracking of the working day.

Section XXXIV of the presidential initiative is explicit:

“To electronically record the working day of each employee, including start and end times, and to provide this information to the authorities when required.”

This single provision changes the rules of the game.

The end of informal time control

For years, many companies have relied on manual, fragmented, or even informal methods to track working hours. Spreadsheets, physical check-ins, incomplete records, or disconnected systems have been common practice. Under a 40-hour workweek, that model becomes unsustainable.

Electronic time tracking is not merely an administrative requirement. It is a matter of traceability, regulatory compliance, and legal protection, for both employees and employers. In a context of heightened oversight by labor authorities, failing to have digital, accessible, and verifiable records can result in fines, sanctions, and legal disputes.

As noted by Diego García Saucedo, founding partner at García Velázquez Abogados, this obligation must be interpreted broadly. Electronic records will not only be essential in potential labor disputes, but also during inspections by the Ministry of Labor and Social Welfare (STPS), where the burden of proof will fall on the employer.

Tech and AI: From Obligation to Competitive Advantage

This is where many companies make a mistake by approaching the issue solely from a compliance perspective. The real question is not whether working hours must be recorded. It is how to transform that requirement into an operational and strategic advantage.

Today's technology, particularly artificial intelligence, allows companies to move far beyond a basic digital time clock. Advanced platforms can:

• Intelligently plan and optimize shifts

• Anticipate staffing needs

• Monitor real versus projected labor costs

• Detect overtime risks before they escalate

• Allocate tasks dynamically based on capacity

In this context, electronic time tracking becomes a management tool, not merely a reporting obligation.

At Sesame, we see this transformation every day in Mexico. Organizations that adopt digital solutions for time management not only comply with regulations, but also make better decisions, reduce errors, avoid cost overruns, and improve the employee experience.

Tools such as AI-assisted scheduling, automated shift management, real-versus-estimated cost tracking, and dynamic task allocation allow companies to adapt to the new workweek without sacrificing efficiency. Even in highly operational sectors — where reduced working hours increase pressure — technology becomes a key ally in maintaining business continuity.

Preparing Now for the Future of Work

Approval of the 40-hour workweek could take place in the coming months. Waiting until the law comes into force to take action would be a strategic mistake.

Companies that anticipate the change, invest in technology, and professionalize time management will be better positioned to comply with regulations, attract talent, and sustain productivity over the long term.

The reduction of the workweek is not just a social reform. It is an urgent call to modernize how organizations operate. Along that path, electronic time tracking will cease to be a requirement and will become the new standard of work in Mexico.

About Sesame

Sesame is a Spanish-born HR software company focused on redefining the employee experience. It enables the digitalization of routine HR processes, allowing managers and HR professionals to focus on talent, professional development, and team well-being to drive business growth and build a strong corporate culture. Sesame currently serves more than 15,000 clients and 500,000 users across over 30 countries in Europe, the United States, and Latin America. Its solutions combine innovation, analytics, and user-friendly design to help HR teams make better decisions, foster engagement, and build workplaces where people want to stay.