Introduction to the Reform
A new work reform regulating activities through applications has come into effect, starting June 22nd. This change introduces a new chapter to the Federal Labor Law (LFT), outlining specific rules for digital platforms, redistributors, and drivers. The reform ensures full access to social security for those earning equal to or more than the minimum wage, while those falling below this threshold will be classified as independent workers but still receive protection against workplace accidents.
Key Aspects of the Reform
Marath Bolaños, Secretary of Labor and Social Security, expressed pride in this “pioneering regulation globally,” emphasizing that technological innovation and labor justice are not mutually exclusive within the Mexican humanist tradition.
- Social Security and Labor Rights: The reform guarantees social security and labor rights for drivers and redistributors who work more than 288 effective hours annually. They will also have access to utility distribution.
- Flexibility and Security: The regulation acknowledges a subordinate relationship during working hours but allows workers the freedom to connect and disconnect at their discretion, preserving flexibility in time, moment, and application for service provision.
- Clear Rules to Prevent Abusive Practices: The reform mandates companies to pay for services within a week, maintain a record of working hours and waiting times, ensure data security, provide mechanisms for addressing workplace harassment and sexual violence, among other points.
- Formal Contracts: Relationships between digital platforms and redistributors/drivers will be formalized through labor contracts, distinct from service terms and conditions. These contracts must be registered with the Federal Center for Labor Mediation and Registration (CFCRL).
- Algorithmic Management Policy: Digital platforms must have an algorithmic management policy that redistributors and drivers are aware of. This policy should include:
- Algorithm Criteria: Platforms must explain their algorithms’ elements affecting labor relations, including task allocation rules, performance evaluation criteria, and consequences of customer ratings.
- Impact on Employment: Platforms must inform how algorithmic decisions influence future job assignments, incentive opportunities, or penalty applications.
- Incentives and Penalties: Platforms must detail reward and penalty systems, explaining their impact on work intensity, quality, frequency, and pace.
Next Steps
The Secretariat of Labor and Social Security (STPS) now has five days to publish general provisions for calculating net income, crucial as full social security is linked to earnings. Additionally, the IMSS technical council has five days to issue general rules for worker affiliation with application services.
A mandatory pilot program will start July 1st and end in December, allowing evaluation and legal adjustments to the social security regime to align with the realities of these activities.
Key Questions and Answers
- What does the new reform entail? The reform introduces a new chapter to the Federal Labor Law, providing specific rules for digital platforms, redistributors, and drivers. It ensures full access to social security for those earning equal to or more than the minimum wage.
- How does this reform balance flexibility and security? The regulation acknowledges a subordinate relationship during working hours but allows workers the freedom to connect and disconnect, preserving flexibility while ensuring clear rules to prevent abusive practices.
- What are the new obligations for companies? Companies must now pay for services within a week, maintain records of working hours and waiting times, ensure data security, provide mechanisms for addressing workplace harassment and sexual violence, and have an algorithmic management policy.
- How will the affiliation of application workers be managed? Worker affiliation with application services will be formalized through labor contracts registered with the CFCRL. General rules for this affiliation will be issued by the IMSS technical council.
