Amendment to the Federal Labor Law Related to Digital Platforms in Mexico

An amendment to the Federal Labor Law (LFT) regarding digital platforms in Mexico was published on Dec. 24, 2024 in the Official Gazette of the Federation (Diario Oficial de la Federación or DOF). It regulates all activities that require the physical presence of a worker for the provision of personal, subordinate and remunerated services, managed by a natural or legal person for the benefit of third parties through a digital platform.

The key points of the amendment are as follows:

• A digital platform worker will be one who provides personal, remunerated and subordinate services, under the command and supervision of a natural or legal person who offers services to third parties through a digital platform, and generates monthly net income equivalent to at least one monthly general minimum wage for their work, regardless of the time actually worked.
• Workers who provide services through digital platforms will be considered independent workers if, at the end of each month, they do not reach the mentioned income.
• In all cases, those who manage digital platforms will be responsible for paying insurance in the social security regime when a work-related risk occurs during the actual working time.
• If a digital platform worker ceases activity for a consecutive period of 30 calendar days, the employment relationship will be automatically terminated, without liability or compensation from the employer.
• If a person meets the conditions to be a digital platform worker again, it will be considered the beginning of a new employment relationship.
• The working time allocated for the platform will be defined by the worker, who will have complete freedom to determine it without fixed schedules, being able to connect and disconnect at their discretion when required.
• The salary in digital platform work will be set by task, service, work or the completion of a job.
• Digital platform workers will have the right to participate in the company's profits when the actual working time exceeds 288 annual hours.
• Tips will not be considered as part of the base salary for the calculation of social security fees.
• The Technical Advisory Council of the Mexican Social Security Institute (Instituto Mexicano del Seguro Social or IMSS) and, if applicable, the Board of Directors of the National Workers' Housing Fund Institute (Instituto del Fondo Nacional de la Vivienda de los Trabajadores or INFONAVIT), will publish, within five days following the entry into force of the reform, the general rules that guarantee compliance for registration, determination, retention, and payment of fees and contributions to the corresponding institutes, through a mandatory pilot program for the insurance of digital platform workers.
• The amendment will take effect 180 days after its publication (June 23, 2025) in the DOF.

Holland & Knight can provide support or a more detailed explanation on how to manage this situation and how it could impact your company and/or commercial groups. For more information, please do not hesitate to contact the authors.

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