Labour rights for platform workers

2 January 2025 4 min read

By Raquel Ortiz Garrido

At a glance

  • Individuals working for a digital platform and earning at least MXN8,364 monthly will be recognized as workers of the platform.
  • Workers' details must be registered with the authorities and new rules will take effect in relation to matters such as social security payments, profit sharing and termination.
  • Employers will be subject to various new obligations including paying weekly, recording working hours, providing training, and establishing complaint channels.

On December 24th, 2024, a reform to the Federal Labor Law (FLL) was published in the Official Gazette of the Federation that regulates services provided through digital platforms. This reform recognizes individuals that provide their personal services to individuals or entities that offer services to third parties through a digital platform as workers of the digital platform. However, such individuals must have a monthly net income equal to at least the minimum monthly wage in Mexico City (MXN8,364 Mexico City for 2025) to be recognized as digital platform workers (DPW); otherwise, they will be considered independent workers (IW).

DPW must be registered as workers with the Mexican Institute of Social Security (IMSS) and the National Workers' Housing Fund Institute (INFONAVIT) with the net income they receive (excluding any tips they receive for providing services), according to rules to be issued by the that the Ministry of Labor. 

Despite employers not being obliged to register IW as workers with the IMSS and INFONAVIT where they do not generate an income equal to the minimum wage in Mexico City, if an IW suffers an accident during working time, the employer will be obliged to pay their assurance in the IMSS regime in relation to any such accident.

In addition, DPW will be entitled to profit sharing when they have worked more than 288 hours during the year. Working time runs from the moment when a DPW or IW accepts a task, service or work for the digital platform up to the conclusion of such task, work or service.

Work for a digital platform will be mainly flexible, discontinuous and defined by the DPW or IW without any fixed work shifts; therefore, they will be entitled to connect to and disconnect from the digital platforms at their own discretion.

Vacation days and premiums, year-end bonuses, overtime, and mandatory and weekly days off will be included in the payments that DPW and IW receive for their services, so they will not be entitled to receive any additional amounts for these aspects.

The employment relationship will automatically end without any severance related obligation for the employer if a DPW stops providing services for a 30-day period. Also, the closure of the digital platform entity (employer of the DPW) for justified cause is considered a special cause that will terminate the employment relationship. Also, in addition to the causes currently set by the FLL, the reform includes additional causes to terminate an employment relationship with a DPW without any responsibility for the employer. In these circumstances, an employer will be excused from obligation to reinstate a DPW through the payment of corresponding severance unless collective rights, such as association freedom, union autonomy, or strike and collective bargaining, have been violated.

Employment agreements can be digitally signed and must include additional information such as the system used to record income and worked time, work tools provided, the percentage of the amount or the method to determine the amount that will be paid to DPWs or IW for the services provided, communication and supervision systems, and any other work conditions.

Employers will have additional obligations, including:

  • Drafting a policy on 'algorithmic work management' which will be part of the employment agreement, meaning that DPWs and IWs must be informed of and accept the policy.
  • Paying the salary and issuing corresponding pay slips each week, including detailing the number of tasks, services and / or work provided, as well as waiting and working time.
  • Recording worked hours and waiting time.
  • Providing training and education regarding the digital platform, work tools, and safety and hygiene measures.
  • Establishing a channel to receive and address complaints related to decisions that interrupt or affect DPW or IW connection to the platform and matters relating to lack of probity or honesty, acts of labor or sexual violence, threats, insults, harassment or sexual harassment, bad treatment, and discriminatory acts against DPW and IW due to their work.

Also, employers are prohibited from:

  • Charging DPWs or IWs for registering with, using, or cancelling use of the digital platform.
  • Hiring minors.
  • Salary retentions that are not permitted by the FLL.
  • Establishing connection restrictions on DPW or IW.
  • Transferring individuals from a normal employment relationship to an employment relationship via the digital platform.

Sanctions for violating the rules relating to digital platform work range from 250 to 25,000 times the Update Measurement Unit (UMA), the value of which in 2024 was MXN108.57 Mexico City and will be updated for 2025. Therefore, considering the current value of the UMA, sanctions can range between MXN27,142 to MXN2,714,250 Mexico City.

The reform will enter into force 180 days after its publication in the Official Gazette of the Federation, on June 22, 2025.