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Mexico Requires Electronic Timekeeping for All Workers

Binding digital time logs create immediate legal exposure for employers while technical rules from the labor ministry remain unpublished.

Overview

  • The federal reform added a duty to record each worker’s start and end times electronically and makes those records full legal proof for labor authorities.
  • Because no exceptions are currently in force, employers must cover all staff including managers, field salespeople and remote workers with a digital system.
  • Inspectors will cross-check electronic logs against payroll and tax receipts, which can trigger automatic overtime pay and fines that range from 250 to 5,000 UMAs per affected worker.
  • Companies are weighing biometric terminals, mobile apps with individual credentials and geolocation, or upgraded payroll software to meet traceability and anti-tampering needs.
  • Businesses face higher operating costs from the record rule combined with a shorter statutory workweek and wage increases, and they are pressing the STPS for clear technical lineamientos before 2027.