MEXICO Trends and Developments Contributed by: Juan José Villar, Juan Carlos Villar and María Leticia Montero, Villar & Villar Abogados, S.C.
The international evidence is encouraging. Microsoft Japan and Unilever New Zealand reported productiv - ity gains of 20-40% in shorter workweek pilots. Less time does not have to mean less output, but only if the transition is managed proactively. Gender equality and workplace violence: new legal duties for employers The reform in plain terms On 15 January 2026, a further decree published in the DOF amended the LFT to strengthen protections against workplace discrimination and gender-based violence. The reform is part of Mexico’s obligations under the USMCA and ILO Convention No 190 on violence and harassment, both of which require con - crete, enforceable action, not just policy statements. The core change is clear: employers are no longer simply encouraged to maintain respectful, inclusive workplaces. They are now legally required to do so and training staff on these topics is a legal obligation, not an optional initiative. What the law now requires from companies Under the amended Article 16 of the LFT, both employers and workers have new legal obligations. For employers, the key duties are: • update internal policies – explicitly address and prohibit discrimination and gender-based violence across all company procedures; • incorporate a gender perspective – in all aspects of labour management, hiring, promotion, pay, access to training and dismissal decisions; • establish confidential reporting mechanisms – workers must be able to safely report incidents without fear of retaliation; • implement clear action protocols – with defined timelines, investigation procedures and corrective measures for every complaint; • provide mandatory training – for all staff on pre - venting discrimination, identifying gender-based violence, and applying equality principles at work; and • foster an inclusive organisational culture – built on dignity, respect and equal opportunity for all work - ers.
Workplace discrimination is broadly defined under the law. It covers any act or deliberate omission, that lim - its a person’s labour rights because of gender, age, pregnancy, marital status, sexual orientation, gender identity, ethnic origin, religion, disability or social sta - tus. This means pay inequities, unequal promotion, biased hiring decisions and exclusionary workplace behaviour all fall within scope. The cost of doing nothing Employers who fail to act face consequences on mul - tiple fronts. On the legal side: • economic fines that can be significant depending on the nature and severity of the violation; • extraordinary labour inspections triggered by com - plaints or non-compliance patterns; • court-ordered corrective measures including man - datory policy changes and public reporting; and • criminal proceedings in the most serious cases involving violence or systematic harassment. Beyond legal risk, companies with poor records on gender equality are increasingly disadvantaged when competing for top talent, winning contracts with inter - national partners, or attracting foreign investment. ESG performance is no longer a reputational “nice to have”, it is a business necessity for any company with cross-border ambitions. Where Mexico stands – and where it is heading Compared to leading international frameworks, Mex - ico’s reform moves in the right direction but remains less prescriptive than the most advanced models. Spain requires mandatory gender equality plans and pay equity audits for medium and large companies. EU Directive 2023/970 on pay transparency requires employers to publicly report gender pay gaps and gives workers the right to know salary criteria. Chile’s Ley Karin mandates specific investigation timelines and procedures for harassment complaints. Mexico’s reform is broader in scope but lighter on specifics. That is both an opportunity and a risk: com - panies that go beyond the legal floor and build sub - stantive, measurable equality frameworks now will be well ahead of any future tightening of requirements –
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