President Claudia Sheinbaum has launched a major reform to Mexico’s Federal Labor Law, aiming to bring essential labor rights to the 658,000 gig workers employed by food delivery and product platforms. In a historic move coordinated with Secretary of Labor and Social Welfare Marath Baruch Bolaños López, this reform steps up protections in a sector that, until now, has operated without access to social security or basic employment benefits.
Key Aspects of the Reform
Among its most impactful changes, the reform mandates registration with the Mexican Social Security Institute (IMSS) for delivery workers, granting them access to workplace injury insurance, sick leave, disability benefits, and childcare services. Workers will also have the option to secure housing credits through Infonavit and participate in profit-sharing benefits.
This reform ensures that gig workers earning at least the national minimum wage gain access to the full suite of social services, while those earning less can opt into social security through an independent workers’ scheme.
Additionally, the reform introduces a Work Algorithm Management policy, requiring companies to outline, as part of the employment contract, the algorithmic rules that govern work schedules and job assignments. This transparency ensures workers understand how algorithms influence their earning potential and opportunities.
A Bold Step Against Precarious Work Conditions
Sheinbaum criticized the longstanding lack of labor protections for delivery workers, accusing companies—primarily transnationals—of dodging employer responsibilities. For years, gig workers in Mexico have been denied social security and other fundamental rights, leading to widespread job instability. This reform signals a turning point toward safer, fairer working conditions.
Tax Contributions and Corporate Accountability
In 2021, as head of government in Mexico City, Sheinbaum introduced a 2% tax on delivery apps, asserting that they should contribute for their use of public roads. Enacted during the COVID-19 pandemic, this measure aimed to lessen the economic strain of the crisis while holding companies more accountable to their workers.
Global Movements to Regulate Platform Work
Mexico’s reform aligns with an international shift towards protecting gig economy workers. In 2021, Spain implemented its “Riders Law,” mandating that delivery drivers be classified as employees rather than independent contractors with limited rights. Similarly, New York City set a precedent in the U.S. by establishing legal protections for food delivery workers, ensuring their access to basic workplace rights.
Ultimately, Mexico’s new reform represents a bold leap forward in labor protections for gig workers. This legislation is not only about providing security and stability but also about ensuring that platform-based companies take responsibility for their workforce, shaping a more equitable future for the industry.