The new working day in Mexico proposes to transform the daily life of citizens in the federal republic. People will have more free time when it comes into force, thanks to reduced working hours and the right to an extra day off. The weeks will include up to 40 hours in five working days.

This change is due to a reform in the Federal Labor Law. The legislative will still need support from the Mexican Congress. The reform received majority support on April 23. On April 25, the change in the constitutional text was approved.

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What is the reason for the new working day?

The new working day in Mexico has not entered into force. The initiative still needs to be approved in the commission’s and senate’s plenary session. After that, it will enter the workforce in September 2023.

First, Mexico is one of the countries with the most hours worked per year. And second, the measure seeks to promote a better quality of life and care for the mental health of citizens. It’s no secret that people are happier and take better care of their health when they have more free time.

The initiative seeks to influence the well-being of Mexicans directly. But on the other hand, companies must establish strategies to remain competitive. That is, employers need to find higher performance in fewer hours worked.

What are the consequences of reducing working hours?

This new working day brings some questions. First, what are the effects on the productivity of organizations? In addition, it is worth wondering about the costs involved for companies. Finally, the experts point out some advantages.

• Greater well-being. The first advantage is related to the possibilities of the workers. More free time has a direct impact on the physical and mental health of employees.
• Higher productivity. Employees can be more productive with less stress and better rest. Contrary to popular belief, reducing the working day can increase efficiency at work.
• Employment generation. As soon as the measure takes effect, companies will need more people to replace the time not covered by former employees.
• More dynamic economy. More free time means more availability to spend and acquire goods. In this sense, the market will have more activity on weekends.
• Possibilities to obtain a second job. Some employees can use their free time to get a second job.

In short, the measure will have a positive effect on work dynamics. Increasing the hours of rest and recreation not only benefits the employee but also has a positive impact on productivity and motivation.

Disadvantages of Labor Initiative

Although workers are the primary beneficiaries of the legislative change, companies may incur higher costs to comply with the measure. Therefore, in the long term, the action may gradually reduce wages. It is due to the following consequences.

• Increase in labor expenses. By reducing the number of hours worked, companies will have to pay overtime or hire new employees. But, again, it depends on the sector and the need for labor.
• Some sectors will have more difficulties. For example, some companies have worked for years with extended hours. Thus, adapting to the new legal requirements will be a challenge in terms of expenses and complying with the minimum hours necessary for the sector.
• Reduction in competitiveness. There is a risk that companies will be less competitive. This possibility is due to the increase in expenses and the potential decrease in business productivity.

The effects of the measure are still uncertain. Employers will have to adapt their production models to stay competitive. In addition, the new working day implies incurring new expenses, which can result in a wage reduction.

Follow the initiative of the new working day closely

The legislative change has not yet entered into force, so we will have to wait to measure its effects. Workers are the biggest beneficiaries of the new working day. For this reason, some sectors fear its stability and the expenses that it will imply. 

However, studies indicate that more free time results in a more productive employee. In any case, the results will remain to be seen if this initiative is approved. If you still have questions about this or other labor law issues, at PCP we can help you, contact us.