Overview of the Labor Reform for Digital Platform Workers in Mexico

On December 24, 2024, a significant amendment to Mexico’s Federal Labor Law was published in the Official Gazette, specifically regulating work performed through digital platforms. This reform recognizes individuals who provide services via these platforms as workers, thereby guaranteeing them labor rights and social security benefits.

Definition of a Digital Platform Worker

A digital platform worker is defined as an individual who provides personal, remunerated, and subordinate services through a digital platform and generates a monthly net income of at least one minimum wage in Mexico City (currently $8,364.00 Mexican pesos for 2025), regardless of the actual hours worked.

Key Provisions of the Reform

• Working Hours: The time effectively worked, from accepting a task to completion, is considered working hours.
• Wages: Pay is determined per task or service and must be paid weekly, including proportional benefits such as rest days, vacations, vacation bonus, Christmas bonus, and overtime.
• Tips: Tips are excluded from the calculation of social security contributions.
• Individual Employment Contracts: Workers must have individual employment contracts, distinct from the platform’s standard terms. These contracts must be registered and authorized by the Federal Center for Conciliation and Labor Registry.
• Profit Sharing: Workers who work more than 288 hours in a fiscal year are entitled to a share of the company’s profits.
• Algorithmic Management: Platforms must have a transparent policy explaining how algorithms assign tasks, which must be communicated to workers.
• Termination: New grounds for termination without cause are established, including actions that compromise user safety or privacy.
• Severance Pay: Specific severance pay amounts are set for platform workers.
• Dispute Resolution: Mechanisms are established for workers to appeal decisions that affect their access to the platform.
• Automatic Termination: If a worker is inactive for 30 consecutive days, the employment relationship is automatically terminated.

Employer Responsibilities

Digital platform companies must:

• Track working hours and wait times.
• Issue weekly pay stubs.
• Protect worker data and privacy.
• Enroll workers in social security.
• Contribute to the National Housing Fund.
• Provide training and support.
• Implement safety measures.
• Establish internal complaint mechanisms.
• Inform workers about their earnings per task.

Penalties and Effective Date

Non-compliance can result in fines ranging from 250 to 25,000 Units of Measurement and Update (equivalent to $27,142.50 to $2,714,250.00 pesos). The reform will take effect 180 days after its publication, on June 22, 2025.

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