On December 24, 2024, President Claudia Sheinbaum Pardo signed the Decree adding various provisions to the Federal Labor Law, regarding Digital Platforms.

I. Modifications to existing Articles.

a. Article 49: A section VI is added, exempting employers from reinstating digital platform workers, except in cases of violations of collective rights, such as freedom of association, union autonomy, the right to strike, and collective bargaining.
b. Article 50: Specifies compensation for digital platform workers, including three months’ salary and twenty days’ salary for each year of service, and;
c. Article 127: Establishes that digital platform workers are entitled to participate in the company’s profits if they work more than 288 hours annually.

I. New Chapter IX Bis: Work on Digital Platforms.

a. Defines work on digital platforms as a subordinate employment relationship that requires the physical presence of the worker, managed through a digital platform using information and communication technologies.
b. A Digital Platform shall be understood as the set of mechanisms, software applications, systems, and devices that assign tasks, services, works, jobs, or similar to workers on behalf of third parties, considering the use of information and communication technologies as defined in Article 330-A of the Federal Labor Law (LFT).
c. Establishes that digital platform workers are those who earn monthly income equivalent to at least one monthly minimum wage in Mexico City. If they do not reach this income, they are considered independent workers.
d. Clarifies that work on digital platforms is flexible and discontinuous, and that the employment relationship exists only during the time actually worked.

e. Allows workers to set their own work schedule, being able to connect and disconnect at their discretion.
f. Establishes that the salary will be set per task, service, work, or job performed, including proportional amounts for weekly rest, vacations, vacation bonus, year-end bonus, and overtime.
g. Requires that work on digital platforms be formalized through a specific contract, which can be digitally signed and registered with the Federal Center for Conciliation and Labor Registration.
h. Details the elements that the contract must contain, including personal data, nature of the work, income accounting system, provided equipment, and supervision mechanisms.
i. Guarantees that digital platform workers enjoy all rights recognized by law, and that companies establish mechanisms to ensure their full exercise.
j. Requires transparency in the rules for task assignment through algorithms, and that companies inform workers about how these algorithms affect the employment relationship.
k. Lists the special obligations of digital platform companies, such as paying workers within no more than one week, recording hours worked, and ensuring information security.
l. Establishes the special obligations of workers, such as following safety and health regulations, taking care of supplies, and refraining from discriminatory and violent practices.
m. Defines the causes for the termination of the employment relationship without employer liability, such as presenting false documentation or compromising client safety.
n. Specifies that for the calculation of compensation, the average income of the last six months will be taken into account.
o. Protects workers from being penalized for non-compliance that is not their responsibility, such as company deception or serious safety hazards.

p. Requires companies to offer mechanisms for reviewing decisions that affect platform connectivity, managed by autonomous personnel and not by algorithms.
q. Allows the termination of the employment relationship in case of deactivation or closure of the digital platform, with prior notice to the workers.

r. Requires companies to observe a gender perspective, protecting workers from acts of discrimination and violence.
s. Prohibits practices such as charging workers for registration or use of the platform, employing minors, and withholding money beyond what is established by law.
t. Prohibits transferring workers from a traditional employment relationship to a digital platform scheme to distort the employment relationship or reduce tax burdens.
u. Allows companies to hire workers under continuous and traditional labor schemes, applying the corresponding provisions of the law.

II. Obligations of Digital Platforms Companies.

a. Companies must pay workers within a period not exceeding one week, record the hours worked, and ensure workers are registered with the IMMS.
b. Companies must ensure information security and provide adequate training.
c. Companies must establish mechanisms to address complaints about workplace violence, discrimination, and other issues.

IV. Sanctions and fines.

a. Fines are established for companies that do not comply with the provisions, ranging from 250 to 25,000 times the Unit of Measure and Update.

V. Entry into Force.

a. The Decree will be effective 180 calendar days after its publication in the Official Gazette of the Federation.

b. The Technical Council of the Mexican Social Security Institute and the Board of Directors of the National Workers’ Housing Fund Institute will publish, within 5 days following the entry into force of the decree, the general rules to ensure compliance with the insurance obligations of digital platform workers through a mandatory participation pilot test.
c. The Mexican Social Security Institute will have 180 calendar days, counted from the publication of the general rules, to prepare initiatives that define aspects related to the compliance with the insurance obligations of digital platform workers, based on the results of the pilot test. The National Worker´s Housing Fund Institute may propose equivalent regulatory adjustments.
d. The Ministry of Labor and Social Welfare may collect, prepare, process, and disseminate information to facilitate the understanding of the rights and obligations arising from labor relations on digital platforms.
e. The time period indicated in section IX of article 127 of the Law is obtained by considering 45 minutes of effective work per hour and 15 minutes of waiting time, resulting in a factor of 0.75 of effectively worked activity per hour. Applying this factor to an 8-hour workday, you get 6 hours daily, 36 weekly, or 144 monthly, which is equivalent to 288 hours annually.
f. The Ministry of Labor and Social Welfare will have 5 days after the entry into force of the decree to publish the general provisions that will define the calculation of net income referred to in article 291-F.

Should you have any questions or require additional information regarding this communication, please contact elvia.palazuelos@rapa.mx.