Mexico Advances Labor Reform Amid Security Crisis Following Cartel Leader's Death

Mexico is progressing with what is positioned as its most significant labor legislation in over a century: a constitutional amendment championed by President Claudia Sheinbaum to progressively reduce the standard workweek from 48 to 40 hours by 2030. The reform, which passed the Senate unanimously and now awaits final confirmation in the Chamber of Deputies this year, explicitly guarantees that the reduction will not diminish current wages or employee benefits. The phased implementation is scheduled to begin in 2027 at 46 hours, followed by 44 hours in 2028, 42 hours in 2029, and culminating at the 40-hour ceiling in 2030, aligning the nation with regional standards set by countries like Chile and Ecuador. This amendment to Article 123 of the Constitution seeks to enhance work-life balance, addressing data from the OECD indicating that Mexican workers historically log some of the highest annual working hours among member nations.

The final Senate version introduced a structural compromise by removing the initial mandate for two fully paid rest days, meaning the 40-hour week will likely be distributed across six workdays, retaining only the guarantee of at least one full paid day off. This adjustment maintains flexibility for sectors with variable production cycles but contrasts with the initial proposal for a universal five-day week. Regarding compensation, the new overtime structure caps voluntary overtime at 12 hours weekly, with a maximum of four of those hours compensated at triple the regular rate. Any hours worked beyond the 40-hour threshold will be paid at double the regular rate. Furthermore, the legislation mandates the future implementation of electronic time tracking systems to increase transparency for labor authorities, a modernization effort that has prompted concerns from business groups regarding potential cost pressures on small and medium-sized enterprises.

This major domestic policy development is unfolding concurrently with an immediate and severe security crisis following a successful operation against a high-profile criminal figure. On Sunday, February 22, 2026, Mexican security forces, supported by U.S. intelligence, killed Nemesio Rubén Oseguera Cervantes, known as “El Mencho,” the leader of the Cartel de Jalisco Nueva Generación (CJNG), in Tapalpa, Jalisco. Oseguera Cervantes was the subject of a $15 million U.S. government bounty and was considered Mexico’s most wanted individual at the time of his death. The operation, involving elements from the Secretariat of National Defense (Sedena) and the National Intelligence Center, reportedly stemmed from tracking one of his romantic partners.