In a significant development for the digital economy in Mexico, a new labour reform recognising the employment relationship between companies and individuals working through digital platforms was published on December 24, 2024. This reform, which amends several articles of the Federal Labour Law (FLL), introduces new measures aimed at enhancing the employment rights for those engaged in platform work. The JD Supra reported that the reform includes a new Chapter IX BIS, which specifically addresses the dynamics of working within digital frameworks.
The forthcoming changes, which will come into effect in June 2025, define work on digital platforms as a subordinate employment relationship requiring the physical presence of the individual to render services. Under this definition, platform workers generating an income equivalent to at least the minimum wage are entitled to protections typically extended to traditional employment roles. Notably, the reform stipulates that users or beneficiaries of the platforms are not considered as employers.
Key components of the reform outline the work shift as the time that an employee accepts a task until its completion, supporting clarity around working hours. Additionally, it mandates the establishment of individual or collective employment agreements detailing salary, equipment, safety conditions, and oversight, which must be formally registered by the Federal Centre for Labour Conciliation and Registration.
A critical aspect includes granting employees the right to participate in profit-sharing from the companies that own and manage these platforms. In cases of litigation, the reform specifies that employers are not required to reinstate employees except when collective rights are violated. Severance payments are to be calculated based on a formula defined by the reform, ensuring that employees receive due compensation upon termination.
Employers are subject to new obligations, which include timely salary payments within one week, implementing tracking mechanisms for hours worked, registering employees in the social security system, and providing training and safety measures. Crucially, transparency about remuneration for tasks performed must also be maintained, coupled with establishing safeguards against discrimination and harassment.
Employees, on their part, must adhere to health and safety regulations, comply with schedules and service delivery protocols, and engage with any monitoring and communication systems provided by the platforms. A firm code of conduct against workplace violence, harassment, and discrimination is also mandated under the reform.
The reform prescribes prohibitive measures aimed at preventing exploitative practices by digital platforms, such as charging employees for registration or withholding money above certain limits. Additionally, child labour is expressly prohibited alongside any attempts to mischaracterise the employment relationship through civil or commercial agreements.
A notable point of interest includes the increasing administrative responsibilities placed on companies, particularly in how they approach remuneration and benefits, such as vacations and Christmas bonuses, which are now linked to specific tasks. Labour unions representing digital platform workers have called for recognition of waiting periods for job assignments as time effectively worked, pushing for comprehensive changes in the operational practices of these digital platforms.
The Mexican Social Security Institute (IMSS) is preparing to initiate a mandatory pilot programme to facilitate the registration of workers on digital platforms. As the country gears up for the full implementation of these reforms in mid-2025, stakeholders within the business community and digital economy are poised to adapt to the evolving legal landscape affecting employment in the realm of digital services.
Source: Noah Wire Services