Electronic time tracking: The new requirement that will transform how Mexican companies manage work hours.

On April 22, 2026, the Chamber of Deputies unanimously approved—with 441 votes in favor—the bill reforming various provisions of the Federal Labor Law to align the secondary framework with the constitutional amendment to Article 123 regarding the reduction of the weekly work schedule. The decree was sent to the Federal Executive for publication in the Official Gazette of the Federation, and it is expected to take effect on May 1, 2026.

While media attention has focused on the gradual reduction from 48 to 40 hours per week—which will take place between 2027 and 2030—there is a second requirement of equal or greater importance for the daily operation of workplaces: the incorporation of electronic time tracking as an explicitly defined employer duty, with clear penalties for non-compliance.

At DM Abogados, we believe this obligation is far from a mere administrative matter; it fundamentally changes how companies must prove compliance with their labor obligations to the authorities.

The new employer duty: Electronic recording of every shift

The reform amends Article 132 of the Federal Labor Law to mandate that employers electronically record each employee's work hours, including start and end times, and provide this information to labor authorities upon request.

The Ministry of Labor and Social Welfare (STPS) will be the agency responsible for issuing general provisions that specify the scope of application, approved technical methods, and any applicable exceptions.

According to the transitional articles of the decree, electronic recording systems must be implemented by January 1, 2027, a date that coincides with the first effective reduction of the maximum workweek to 46 hours.

Penalties: Non-compliance has a quantifiable cost

The penalty regime is one of the most critical elements for business operations. The reform establishes fines ranging from 250 to 5,000 Units of Measurement and Update (UMA) for failing to implement or maintain electronic time tracking.

In economic terms, at the current UMA value, this translates to potential fines ranging from approximately 29,000 to 587,000 pesos per employee or per detected violation, depending on the severity and circumstances assessed by the authority.

Added to this is a significant collateral effect: the lack of reliable time records shifts the burden of proof in court. In labor matters, when an employer cannot prove the hours actually worked, the employee's version is presumed true. In practice, this leads to significant judgments for overtime, worked rest days, and Sunday premiums.

Why is this a structural change rather than a minor adjustment?

Traditionally, a significant portion of companies in Mexico has operated with informal attendance control schemes: physical time cards, sign-in sheets, biometric controls without documentation, or simply verbal agreements based on trust. This reform eliminates that flexibility.

Once in effect, time tracking is no longer an internal practice subject to employer discretion; it becomes a verifiable, documentable, and sanctionable obligation. Authorities may request these records at any time—not just during an inspection—and employers must be prepared to produce them immediately.

This presents concrete operational challenges for various work models:

Hybrid and remote work schemes. How do you document the start and end of a workday for someone working from home? The obligation does not distinguish between on-site or remote work; it applies to every subordinate employee.

Trust-based employees. Although Article 9 of the Federal Labor Law (LFT) maintains this category, it does not exempt the employer from the duty to record working hours. The distinction of trust-based roles is relevant for stability and benefits, not for timekeeping.

Objective or project-based schemes. The reform does not introduce exceptions based on compensation models. Even when productivity is measured by deliverables, working hours must be recorded in accordance with the provisions issued by the Ministry of Labor and Social Welfare (STPS).

Continuous operations (manufacturing, retail, logistics, hospitality). These sectors face the challenge of migrating from heterogeneous systems—often based on obsolete hardware—to auditable digital solutions that allow for real-time information to be presented to the authorities.

Adaptation period: what companies must do between May 2026 and January 2027

The decree includes an adaptation period running from May 1 to December 31, 2026, for employers and employees to adjust their operational dynamics to the new regulation. This timeframe is not an extension of the effective date; it is a window to implement the necessary adjustments.

Based on our labor practice, we recommend that companies carry out at least the following actions during this period:

Diagnosis of actual working hours. Identify the hours effectively worked by each job category, cross-reference this information with contractual agreements, and detect gaps that could lead to liabilities.

Review of individual contracts and internal work regulations. Clauses regarding schedules, weekly distribution of hours, and overtime must be reviewed in light of the new framework. In particular, it is advisable to formalize in writing the agreements on the distribution of working hours that the new article allows the parties to negotiate.

Selection and implementation of the time-tracking technological solution. The chosen system—whether biometric, geolocated, based on digital credentials, or any other—must guarantee the integrity, inalterability, and traceability of the information, as well as its immediate availability to the authorities.

Training for middle management and human resources departments. Compliance does not end with the acquisition of a system; it requires operational discipline from those who supervise daily working hours.

Digital disconnection policy. Although not the direct subject of this reform, electronic recording inevitably reveals patterns of extended working hours linked to the use of digital media outside of scheduled hours, which opens an additional front of exposure that should be anticipated through internal policies.

The question every management team must answer today

Is your company in a position to prove, without a shadow of a doubt and in the event of a request from labor authorities, the hours effectively worked by each of its employees?

If the answer is not a resounding yes, the time to act is now. Experience shows that regulatory transition processes are often underestimated until the authority conducts its first inspection visit or the first lawsuit is filed where the recording system is put to the test.

At DM Abogados, we support our clients in the diagnosis, design, and legal implementation of the adjustments required by this reform. Our approach combines technical rigor, deep knowledge of labor authority practices, and a strategic vision that allows compliance to be turned into an operational advantage rather than a reactive burden.

Contact us to assess your company's level of preparedness for these new obligations.