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We would like to inform you that on May 1, 2026, the Decree amending, adding, and repealing various provisions of the Federal Labor Law regarding the Reduction of the Workweek (the “Decree”) was published. This Decree represents one of the most significant reforms in labor culture in recent times, as it establishes that the maximum limits on the workweek will be progressively reduced the next few years years until reaching a maximum of 40 hours per week.

The most relevant points of the Decree are as follows:

• Reduction of the Workweek: Moving from a maximum of 48 hours for the day shift, 42 for the night shift, and 45 for the mixed shift, to a general maximum of 40 hours per week for all shifts, without any modifications to the maximum hours per shift.


• Prohibition of Salary and Benefit Reductions: The gradual reduction of the workweek is subject to the condition that there shall be no reduction in workers’ wages or benefits.


• Gradual implementation: The maximum workweek will be progressively reduced by 2 hours each year, starting in 2027 and concluding in 2030; that is, it will begin in 2027 by reducing to 46 weekly hours, in 2028 to 44, in 2029 to 42, and finally in 2030 reaching 40 hours as the maximum weekly workweek.


• The 6 days of work for 1 day of rest rule is maintained: Employer and worker retain the right to decide how to organize the workweek in the manner that suits them best.


• New scheme for permitted overtime that will be gradually modified:

i. The legal limit for maximum weekly overtime hours will be increased, starting in 2028, from 9 to 10 hours, in 2029 from 10 to 11, and in 2030 from 11 to 12 maximum hours per week, which will continue to be paid as before, with an additional 100% over the regular hourly (what we refer to as “double pay”).

ii. Overtime hours exceeding the double hours within the same progressive scale will continue to be covered with an additional 200% (what we currently known as “triple pay”), with one very important feature: as of 2027, no more than 4 triple pay hours can be accrued a single week.

iii. New daily work limit: As of 2027, the total number of regular and overtime hours may not exceed 12 hours per day.

iv. Daily overtime hours are limited: As of 2027, workers may not work more than 4 hours overtime per day, nor may they work overtime more than 4 times a week.

v. Interpretation regarding whether paid overtime integrates salary and forms part of the base contribution salary: The amendment to Article 66, which establishes that amounts paid for overtime work “shall be credited as salary”, could result in the interpretation that overtime pay shall be considered as part of the employee’s salary for purposes of severance payments and, potentially, for determining the daily base contribution salary before the Mexican Social Security Institute (“IMSS”). Accordingly, it will be necessary to await judicial criteria and guidance from the IMSS Technical Council.

• Obligation to have an electronic work shift registry: Employers must implement, preserve and provide to the Authority, upon request, an electronic registry of the start and end of the workday; to this end, the Ministry of Labor and Social Welfare (“STPS”) will issue guidelines to regulate this requirement and any exceptions to it.

The Decree establishes the following key points for implementation:

A. GRADUAL REDUCTION OF THE WORKWEEK

The transition toward the 40-hour weekly workshift will be carried out in a staggered manner every January 1st, according to the following schedule:

B. INTERNAL ADJUSTMENT PERIOD FOR COMPANIES

A period from May 1st to December 31st, 2026, is provided for employers to carry out the necessary internal management to adjust their work processes to the new legal requirements.

C. GRADUAL INCREASE OF OVERTIME HOURS

The new maximum double pay overtime hours will also be adjusted gradually each January 1st until reaching the legal maximum of 12 hours in 2030, according to the following schedule:

D. ENTRY INTO FORCE OF THE ELECTRONIC WORK SHIFT REGISTRY

The obligation to implement the electronic registry will enter into force as of January 1, 2027. Non-compliance with this obligation will be sanctioned with fines ranging from 250 to 5000 UMAs ($117.31 as of today, meaning they could range from $29,327.50 up to $586,550.00; furthermore, in the worst-case scenario, the fine will be imposed per worker as indicated by the penultimate paragraph of Article 992 of the FLL).

It is recommended not to make drastic changes, nor to contract these registry systems, until such time as the STPS issues the operating rules and defines the exceptions to this obligation.

To ensure regulatory compliance with the new provisions, it is important to conduct a technical and operational analysis of the current shift structures and operating model, as well as detailed reviews of payroll cost projections. Likewise, it is recommended to make strategic modifications to individual and collective employment agreements, internal work regulations and internal policies, as well as to the documents that stipulate work schedules and shifts, to align them with the flexibility and gradual implementation scheme set out in the Decree.

We remain at your entire disposal to resolve any questions or to discuss how these changes will impact your specific operation.

For more information, we share with you the link to the publication in the Official Gazette of the Federation: https://www.dof.gob.mx/nota_detalle.php?codigo=5786537&fecha=01/05/2026#gsc.tab=0

For additional information, please contact:

Rafael Vallejo, Partner: +52 (55) 5258-1036, rvallejo@vwys.com.mx

Adrián Castillo, Partner: +52 (55) 5258-1014, adcastillo@vwys.com.mx

Alejandra Arizpe, Associate: +52 (55) 5258-1014, aarizpe@vwys.com.mx

Sarah Gibert, Associate: +52 (55) 5258-1014, sgibert@vwys.com.mx

Santiago Torres, Associate: +52 (55) 5258-1036, storres@vwys.com.mx

Alejandro Pérez, Associate: +52 (55) 5258-1054, alperez@vwys.com.mx

Ana Ruiz, Associate: +52 (55) 5258-1014, aruiz@vwys.com.mx

Ricardo Rosas, Associate: +52 (55) 5258-1054, rrosasg@vwys.com.mx