On December 24, 2024, the reform to the Federal Labor Law (LFT) regulating employment in digital platforms in Mexico was published in the Official Journal of the Federation (DOF). This reform, approved by the Chamber of Deputies on December 10, 2024, and by the Senate on December 12, 2024, introduces a new chapter in the LFT to ensure labor rights for workers in digital platforms such as Uber, DiDi, and Rappi.
Key Changes to the Federal Labor Law:
New Chapter IX BIS: A specific chapter regulating digital platform work has been added, establishing rights and obligations for both workers and companies.
Recognition of the Employment Relationship: Workers generating income equal to or greater than a monthly minimum wage will be recognized as formal employees, entitled to benefits such as social security, Christmas bonuses, vacation, and profit-sharing.
Obligations of Digital Platforms: Companies are required to register their workers with the Mexican Social Security Institute (IMSS) and make the corresponding contributions to the National Workers' Housing Fund Institute (INFONAVIT).
Algorithmic Management Policies: Platforms must implement clear policies regarding the use of algorithms affecting task assignment and provide information on how these policies influence working conditions.
Prohibitions for Companies: It is prohibited for companies to charge workers for registration and other concepts, as well as unjustifiably restricting access to the platform, thus protecting the workers' rights.
Important Data:
Number of Affected Workers: Approximately 658,000 people depend economically on these platforms in Mexico, with around 272,000 earning income equal to or above a monthly minimum wage.
Effective Date: The reform will come into effect 180 days after its publication in the DOF, i.e., in June 2025. Subsequently, the IMSS and INFONAVIT will conduct a pilot program to ensure the registration of workers, with an additional 180 days to implement initiatives that further define compliance with the law.
This reform represents a significant step forward in protecting the labor rights of digital platform workers in Mexico, aligning with international standards and responding to the demands of this growing labor sector.
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