The increase in permitted overtime hours may be seen by companies as a permanent remedy to compensate for the reduction to a 40-hour workweek.

This article by Cristóbal Martínez Riojas originally appeared in the March 6, 2026 edition of El Economista.

Using overtime as a permanent solution to address the gradual reduction of the working day to 40 hours in companies could be a more costly measure and a setback to the objective of the legal change, warn labour law specialists.

“Technically it is not illegal as such, but it will generate a legal and economic consequence for companies,” warns Estefanía Rueda, partner at Littler.

The constitutional reform enacted this week, in addition to the 40-hour work week, establishes a new limit on overtime; double-paid hours will be limited to 12 per week, cannot exceed four hours per day, and cannot occur more than four times in a week.

While in the case of so-called “triple hours” the restriction will be 4 hours per week, before the reform there was no maximum for this model.

The increase in permitted overtime hours may be seen by companies as a permanent remedy to compensate for the reduction to a 40-hour workweek; that is, asking workers to work overtime.

“I would be concerned if some companies were viewing overtime as a permanent option. I would constantly point out and warn that overtime is just that, extraordinary, and should not be treated as ordinary on a regular basis,” said Mayeli Cabral, partner in the Labor Law department at Chevez Ruíz Zamarripa.

Estefanía Rueda agrees that, faced with the reduction of the working day, the solution for some employers is to increase the use of overtime.

“Especially because these are still within the limits allowed by law without constituting the crime of labour exploitation. So, in this sense, they represent a lower risk for employers to be able to ask employees to work that extra shift of up to 12 hours a week,” Rueda explains.

Using overtime to compensate for reduced working hours instead of taking other measures in processes and hiring more staff could go against the objective of the reform, which is to give workers more time for rest .

More Overtime Hours Limit Rest

Mayeli Cabral believes that companies should not lose sight of the fact that the foundation of this reform is to achieve more rest time for workers and that “this measure should not be abused. That time should be respected.”

Rueda argues that increasing the limit on allowed overtime hours, from 9 to 12 per week, contradicts the reduction of psychosocial risks from work in Standard 035.

This, he explains, is because increasing overtime hours creates a psychosocial risk due to a greater workload and a potentially lower balance between personal life and work.

“In their analyses, companies that are subject to this regulation (Standard 035) will identify a high risk and will have to establish corrective or control measures so that this level of risk can be reduced in the next evaluation,” Rueda adds.

As for the economic consequences, if companies use overtime to compensate for the reduction in working hours, they will also have to assume double payment for those hours.

“Since they are (used as) an everyday matter, it can also generate an increase in the base salary for social security contributions and allow employees to request that this overtime payment be included within their integrated salary,” Rueda warns.

Both specialists agree that companies need to start preparing now and not wait until January 1, 2027, the date on which the gradual reduction of the working day begins, to prepare scenarios that do not significantly impact costs or the “abuse” of overtime.

“I am in favor of not abusing overtime hours , but rather that the objective of the reform, which is rest time and more quality time, is truly fulfilled,” says Mayeli Cabral.

Among the preparation actions, the lawyer suggests starting by reviewing internal work processes to identify repetitive tasks, those that do not add value, and thereby investing in training and the use of technology.

“The best thing to do is to use this time to review which activities we can perhaps automate, making processes more efficient, even if they are still carried out by humans, but which can help us streamline our processes within companies to ensure that this reduction in working hours is real,” Rueda suggests.

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