New Reform on labor exploitation

Key Aspects of the Reform

Work shifts exceeding the weekly legal limits established by the Mexican Federal Labor Law will now be considered labor exploitation.

Specifically, work shifts are deemed excessive when they exceed 9 hours of overtime per week. It could be interpreted that requiring overtime in excess of said limit could potentially be considered labor exploitation

Penalties for Non-Compliance

• Employers who engage in these practices will face severe penalties, including:

  • Fines:  from 5,000 to 50,000 fine days (días multa)  Fine day is equivalent to the net daily income of the sentenced person at the time of the crime, taking into account all income.

  • Imprisonment: from 3 to 10 years.

• These penalties  may be increased by up to 50%, if the affected workers belong to vulnerable groups, including:

  • Pregnant women

  • People with physical or psychological disabilities

  • Minors under eighteen years of age

  • Senior citizens 

  • Members of indigenous and Afro-Mexican communities.

There is also a pending bill proposing the reduction of the weekly work shift from 48 to 40 hours. If approved, this change will further impact compliance requirements and increase the risk for companies of falling into scenarios of labor exploitation.

Authors: Mary Carmen Fuertes, Regina Torrero, Juan Pablo Vázquez and Almeduena Cuesta.