Employment Reform for Digital Platform Workers in Mexico

On Dec. 24, 2024, a reform to Mexico’s Federal Labor Law that regulates work in digital platforms was published in the Federal Official Gazette. This reform recognizes individuals who provide services through such platforms as employees to ensure their employment rights and access to the social security system.

A digital platform employee will be understood as an individual who provides personal, remunerated, and subordinated services through a digital platform and who earns a net monthly income from their work equivalent to at least one minimum (monthly) wage in force in Mexico City (Mex$8,364.00/US$418.20 per month by 2025), regardless of the time effectively worked.

Individuals who earn less than one minimum (monthly) wage will be considered independent employees. Companies that operate digital platforms must register independent employees before the Mexican Social Security Institute (IMSS) to guarantee their coverage in case of occupational risks during the time effectively worked.

Key Provisions

The key provisions of the reform include:

• Employers must consider the time an employee effectively worked as working hours; this would include all the time worked between when the employee accepts a task and when it is completed or finalized.
• The salary per task or service performed must be paid on a weekly basis and include the prorated amounts that correspond to mandatory benefits such as rest days, vacations, vacation premiums, Christmas bonuses, and overtime.
• Tips are to be excluded for the calculation of social security contributions.
• Individual employment contracts, which are different from the terms and conditions commonly defined by digital platforms for the execution of tasks, must be registered and authorized by the Federal Center for Conciliation and Labor Registration. They may also be signed digitally and will include specific details on remuneration, work equipment, safety conditions, and supervision mechanisms.
• Digital platform employees have the right to participate in the profit of such companies, provided that their time effectively worked during the tax year exceeds 288 hours. The reform sets forth a specific factor for the calculation and determination of time worked.
• Companies that operate digital platforms must implement an algorithmic work management policy that explains the operation of the algorithms used to assign tasks and activities. This policy must be communicated to employees from the start of the employment relationship, and any changes must be reported in a timely manner. This policy must be accepted and signed by the employees.
• There is now a provision defining new grounds for termination of the employment relationship without liability for the employer, which includes conduct that compromises the security or privacy of users of digital platforms, as well as unjustified failure to comply with assigned tasks or work-related instructions.
• Indemnities to be paid for the termination of the employment relationship with digital platform employees have been established.
• The reform establishes mechanisms to be followed by those companies that operate digital platforms to address and review decisions that affect or interrupt the connection, linkage, or access to the digital platform through which the services are provided.
• There is express provision in which the employment relationship will be understood as automatically terminated when the employee stops their activity for a consecutive period of 30 calendar days.

New Responsibilities

The reform introduces new responsibilities for digital platform companies, which include these obligations:

• Set mechanisms to keep track of hours effectively worked and standby times.
• Issue weekly payment receipts for services rendered.
• Implement mechanisms to ensure the security of information and personal data of employees.
• Register employees before the IMSS.
• Make the proper contributions to the National Workers’ Housing Fund in relation to the employees.
• Establish mechanisms to train and assist employees to ensure the adaptation and proper use of digital platforms.
• Provide information on occupational health and safety measures to be observed by employees in the performance of their work.
• Establish specific procedures to address and follow up on internal complaints or claims raised by employees.
• Provide information to employees about the payment they will receive for each task.

Failure to comply with these provisions may result in companies that own digital platforms being sanctioned with monetary fines that range from 250 to 25,000 Units of Measurement and Actualization, equivalent to amounts from Mex$27,142.50/US$1,357.13 to Mex$2,714,250.00/US$135,712.50.

The reform shall take effect 180 days after its publication in the Official Gazette of the Federation (that is, on June 22, 2025).

The IMSS will have 180 calendar days to draft a proposal to reform the Social Security Law based on the results of the pilot test aimed to ensure digital platform employees comply with the new obligations set forth by this reform.

Finally, the National Workers’ Housing Fund must publish, within five days of the reform entering into force, the general rules that guarantee compliance with the special obligations of the companies that operate digital platforms.

David Eugenio Puente Tostado is an attorney with Basham, Ringe y Correa S.C., a member firm of the FLI Network, in Monterrey, Mexico. Luis Alvarez and Jorge G. De Presno Arizpe are attorneys with Basham, Ringe y Correa S.C. in Mexico City. © 2025 Basham, Ringe y Correa S.C. All rights reserved. Reposted with permission of Lexology.