Update on labour rights for digital platform workers

At a glance

• Amendments to the Federal Labour Code have been proposed, introducing new rights to digital platform workers.
• Digital platform workers will be recognized as employees.
• Amendments include conditions on hours worked, payment strictures, contracts and profit sharing, and new obligations will be set to ensure these amendments are met.
• The reform will take effect the day after publication, with a transition period for companies. It includes a pilot program for registering workers and mandates insurance coverage for all operators during their working hours.

On October 16, 2024, an initiative by the executive branch of the government was submitted to Congress with a proposed amendment to the Federal Labor Code. The purpose of the amendment as submitted in the initiative is to guarantee digital platform workers labor rights. Digital platform workers would be classified as 'employees', and other amendments include:

• Work Hours: Only the time actively worked will be counted, from task acceptance to completion. Unions are advocating for waiting times between tasks to also be recognized as work hours.
• Payment Structure: Payments will be task-based, including prorated benefits like rest days and bonuses, which may increase administrative burdens for employers.
• Employment Contracts: Companies must establish individual or collective contracts with employees, which need to be registered with the Federal Center for Conciliation and Labor Registry. Contracts can be signed digitally and must outline salary, equipment, safety conditions, and supervision.
• Profit Sharing: Employees will have the right to participate in profit sharing, which may complicate calculations for employers.
• Algorithm Transparency: Companies must disclose how task-assignment algorithms work, which could involve revealing proprietary information.

As well as amendments to the Labor Code, the initiative provides for new obligations which  must also be met by companies:

• payments to employees must occur within one week;
• mechanisms to track hours worked and issue receipts must be implemented;
• employees must be registered in the social security system;
• companies must provide training and job security measures;
• transparency in remuneration for tasks is required; and
• mechanisms to prevent workplace discrimination and harassment must be established.

Next steps

The Mexican Social Security Institute will initiate a pilot program for registering digital platform employees, allowing flexibility in payments and retroactive adjustments. Platforms must also register under the Mandatory Social Security Regime. This covers benefits for those digital platform workers who earn the minimum wage (those who earn less can register as self-employed).

Employers will be required to adhere to adequate safety standards and insurance must cover operators during the period of time worked, regardless of their income.

The initiative does not address issues related to mandatory rest days or vacation periods, nor does it ensure that employees do not exceed normal working hours.

The reform will take effect the day after its publication in the Official Gazette, with a transition period for companies to adapt. It is important to reiterate that this is currently a proposal and there is no clear timeframe as to when this might be published in the Official Gazette.