Introduction to the Labor Reform by STPS
During a morning press conference on Friday, Marath Bolaños, the head of Mexico’s Secretaría del Trabajo y Previsión Social (STPS), described the recent labor reform as “historic.” This reform introduces a new chapter to Mexico’s Federal Labor Law, specifically addressing digital platform workers such as delivery and ride-hail drivers.
Bolaños emphasized that this new legislation acknowledges a unique labor relationship while ensuring workers’ rights without compromising the flexibility inherent to these jobs.
Relevance of Claudia Sheinbaum and the Negotiation Process
Mexico City’s Mayor Claudia Sheinbaum highlighted that the agreement was reached after multiple meetings with companies in the sector, who initially resisted but eventually recognized the importance of protecting those performing this type of work, often under risky conditions.
Five Essential Points of the Labor Reform
Social Security Without Losing Flexibility
The reform ensures that workers generating income equal to or greater than the monthly minimum wage will have full coverage under the Mexican Social Security Institute (IMSS) and Infonavit credits.
- This includes work-related insurance for hazards, illnesses, maternity, invalidity, severance pay, and access to daycare facilities.
- Workers maintain the freedom to decide when, where, and how much they work.
Transparency in Algorithm Management
One of the most significant innovations is the regulation of algorithmic management. Decisions affecting workers, such as task allocation or penalties, must be understandable, auditable, and subject to human review.
“No one can be disconnected by a robot without the right to an audience,” Bolaños stated. Immediate disconnection is only permitted in serious cases like fraud or security risks.
Prohibition of Unjust Charges
Platform companies can no longer charge workers for app usage or use sham contracts to avoid labor responsibilities. Protocols against harassment and bullying will also be established.
No Tax Increase or Fiscal Change
The reform does not involve modifications to the existing tax regime. Workers will continue declaring under current ISR and IVA rules.
Those already contributing to other schemes, such as pensioners or those registered under modality 40, can combine their incomes without losing rights.
Gradual Implementation and Pilot Program
The implementation phase begins on July 1, 2025, with a pilot program running until December 31. During these six months, the effectiveness of the rules will be evaluated for necessary operational adjustments.
The reform is set to take full effect on January 1, 2026. Next week, the official guidelines, including IMSS enrollment rules and net income parameters, will be published in the Federal Official Gazette.
It’s worth noting that Mexico recently received recognition at the International Labour Organization’s (ILO) Conference in Geneva for this reform, deemed an innovative model of digital economy regulation centered on respecting human and labor rights without imposing rigidity.
Key Questions and Answers
- What is the main focus of this labor reform? The reform aims to protect digital platform workers, such as delivery and ride-hail drivers, by ensuring their access to social security without compromising the flexibility of these jobs.
- How does this reform address algorithmic management concerns? The reform mandates that decisions affecting workers, like task allocation or penalties, must be understandable, auditable, and subject to human review.
- What changes will there be in charges related to app usage? Platform companies can no longer charge workers for app usage or use sham contracts to avoid labor responsibilities.
- Will this reform affect the current tax regime? No, the labor reform does not involve modifications to the existing tax regime.
- When will this reform take full effect? The labor reform is set to take full effect on January 1, 2026.
