By government order, companies in this neighboring country will have to record employees’ work hours starting January 1, 2027

The electronic workday tracking system will be one of the main changes companies will need to consider as part of the gradual implementation of the labor reform in México. Employers will be required to keep an electronic record of their employees’ hours. So this information can later be provided to authorities when requested.

For companies, it is important to distinguish between obligations that have already been incorporated into the Federal Labor Law (LFT) of México and those aspects that still must be defined through general provisions issued by the Ministry of Labor and Social Welfare (STPS).

What does the Federal Labor Law say about electronic record-keeping?

On May 1, 2026, the government gazette published the decree that amended several provisions of the Federal Labor Law related to the reduction of the workweek.

Among the changes is the addition of subsection XXXIV to Article 132, which requires employers to keep an electronic record of each worker’s hours.

The provision covers three main points:

1. The record must be kept through electronic means
2. It must include the start and end time of the workday
3. The information must be available to authorities when requested

The same subsection says that the ministry will be responsible for issuing the general provisions to determine the scope of application and any possible exceptions.

That’s why, although electronic record-keeping is already contemplated in the law, it is still necessary to distinguish between obligations established directly in the statute and the technical requirements that will be defined later.

When will electronic time tracking become mandatory?

The decree took effect on May 1, 2026 and set a transition period for employers and workers that will run through Dec. 31 of this year.

After that, the fifth transitional article states that the general provisions related to electronic workday tracking will begin to apply on Jan. 1, 2027.

The rest of the year will be a key period for companies to review their attendance-control systems and begin preparing for the changes they will need to implement.

The reform also includes a gradual reduction in the standard weekly work schedule. By 2027, the maximum will be 46 hours; in 2028, 44; in 2029, 42; and by 2030, it will reach 40 hours a week.

According to the decree, reducing the workweek must not mean lower pay or benefits for workers.

That’s why the changes planned for 2027 will not be limited to electronic record-keeping. Companies will also have to review how they distribute schedules, shifts, hours actually worked, and payroll-related processes.

What requirements will electronic record-keeping have in 2027?

The law says the workday must be recorded electronically and that the system must identify the start and end times of work.

However, the decree does not expressly say that all companies must use a specific platform, a particular time clock, facial recognition, fingerprinting, or geolocation.

These issues, as well as the scope of application and possible exceptions, will have to be reviewed based on the general provisions issued by the STPS.

For that reason, companies should not assume that any electronic system available on the market will automatically meet the requirements starting in 2027.

What penalties does the law include?

The reform also added subsection IV Bis to Article 994 of the Federal Labor Law, which sets fines of between 250 and 5,000 Units of Measurement and Update (UMA) for required employers that fail to comply with Article 132, subsection XXXIV.

The specific application of any sanction will depend on the relevant provisions and the procedure set by authorities.

For that reason, companies will need to identify which requirements actually apply to them and have information that can show they are complying.