ARTICLE · 25 JUNE 2021

Recent Changes In Labor Laws May Require Immediate Action For Companies With Operations In Mexico

Masuda, Funai, Eifert & Mitchell, Ltd.

Explore more from Masuda, Funai, Eifert & Mitchell, Ltd.

Businesses that maintain operations in Mexico may need to take immediate action with respect to their workforce as Mexico accelerates implementation of its new labor law.

MexicoEmployment and HR

George Kobayashi

Author LinkedIn connections

Executive Summary

Businesses that maintain operations in Mexico may need to take immediate action with respect to their workforce as Mexico accelerates implementation of its new labor law. On April 23, 2021, a decree that reforms labor outsourcing in Mexico was published in the Official Journal of the Federation (Mexico), the official governmental publication of Mexico. The new language of the law expressly prohibits subcontracting, defined as the practice of providing or making available workers for the benefit of another person or legal entity. This decree may require certain businesses with operations in Mexico to significantly and quickly change their workforce structure if they are using outsourced labor in Mexico.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Pregnancy And Termination Of Employment: New Guidelines Highlight Social Security And Compensation Risks For Companies

MexicoEmployment and HR

Vega, Guerrero & Asociados

Building An Inclusive Workplace: Practical Actions To Support The LGBTQIA+ Community (Video)

MexicoEmployment and HR

When Algorithms Hire: AI Recruitment And Employment Risk In Mexico

MexicoEmployment and HR

GGI | Global Alliance

IMSS: Digitalization Of The Employer Identification Card

MexicoEmployment and HR

The Countdown Has Already Begun: 2030 And The 40-Hour Challenge For The Manufacturing Industry

MexicoEmployment and HR

Vázquez Tercero & Zepeda

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Employment and HR
- Employee Benefits & Compensation
- Outsourcing

Related Comparative Guides

Comparative Guide

Technology Outsourcing

Comparative Guide

Employee Incentives

See more popular content from

Employment and HR

Mexico Increases Paid Vacation For Employees

Since 1 January 2023, employees who have worked for at least one year for the same employer are entitled to a minimum of 12 paid vacation days (in addition to the statutory paid holidays).

MexicoEmployment and HR

Mexico Increases The Minimum Wage For 2026

On December 3, 2025, the National Minimum Wage Commission ("CONASAMI" for its acronym in Spanish) agreed to increase the general minimum wage to $315.04 pesos per day and $440.87 pesos per day...

MexicoEmployment and HR

Littler Mendelson

Minimum Wage Increase For 2026

President Claudia Sheinbaum Pardo, accompanied by the Ministry of Labor and Social Welfare, announced this Wednesday during the morning press conference a 13% increase in the general minimum wage for 2026, which will climb from $278.80 to $315.04 pesos per day.

MexicoEmployment and HR

Von Wobeser y Sierra, SC

Companies With REPSE Registration: Obligations (January–April 2026)

Companies registered in Mexico's REPSE (Registry of Specialized Service Providers) face critical compliance deadlines for the first four-month period of 2026. Understanding the mandatory reporting requirements to IMSS and INFONAVIT, along with the potential consequences of non-compliance, is essential for maintaining valid registration and avoiding tax exposure.

MexicoEmployment and HR

Mexico's Daily Minimum Wage For 2026 Will Increase By 13 Percent

On December 3, 2025, Mexico's Ministry of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social) announced an increase to the daily minimum wage that will be applicable in Mexico for 2026.

MexicoEmployment and HR

Ogletree, Deakins, Nash, Smoak & Stewart

La reforma laboral en méxico - Sindicatos y contratación colectiva: administración y representatividad

El voto personal, libre, directo y secreto de los trabajadores como garantía para la protección de la libertad de negociación colectiva.

MexicoEmployment and HR

Marvan, Gonzalez Graf y Gonzalez Larrazolo

Employee Incentives

The Federal Labour Law ("FLL") provides all employees with minimum mandatory benefits (Christmas bonus, vacation premium, vacations, profit sharing).

MexicoEmployment and HR

The Countdown Has Already Begun: 2030 And The 40-Hour Challenge For The Manufacturing Industry

Mexico's manufacturing sector faces a critical deadline: by 2030, all productive companies must transition to a 40-hour workweek while maintaining current production demands. This regulatory shift presents complex challenges for maquila and labor-intensive operations, particularly along the northern border where talent shortages, rising wages, and international competition converge to create unprecedented operational pressures that require strategic planning beyond simple schedule adjustments.

MexicoEmployment and HR

Vázquez Tercero & Zepeda

Amendment To The Federal Labor Law Regarding The Reduction Of The Workweek (48 To 40 Hours)

Mexico's Federal Labor Law has been amended to gradually reduce the maximum workweek from 48 to 40 hours by 2030, while maintaining worker salaries and benefits. The reform introduces new overtime regulations, daily work limits, and requires employers to implement electronic work shift registries starting in 2027.

MexicoEmployment and HR

Von Wobeser y Sierra, SC

Venezuelans Will Need A Visa To Enter Mexico As Of January 21, 2022

On January 6, 2022, the Mexican Ministry of the Interior published in the Official Gazette of the Federation an agreement announcing a change in Mexican migration policy...

MexicoEmployment and HR

Littler Mendelson