Cases and situations · 3 min read
Franchises: who is the employer and who keeps the record
Short answer
The employer is the one who hires and pays the staff: normally, the franchisee. The working-time record is their responsibility, even if the brand sets the store's hours.
For the franchisee
Each unit needs its recording point and a per-person report.
For the franchisor
Recommending or requiring the same system across the whole network makes it easier to audit compliance and protects the brand.
When staff rotate between units
If they have the same owner, use a single account with several locations. If they have different owners, they are different employers.
The reform in one minute
The reform has two parts. On March 3, 2026, article 123 of the Constitution was amended to set the 40-hour workweek. On May 1, 2026, the Federal Labor Law was amended, which is where the detail is.
- The maximum working week drops from 48 to 40 hours, two hours per year, between 2027 and 2030.
- Overtime has a weekly cap: it is paid at double time up to the cap and at triple time for up to 4 more hours.
- Each company must electronically record the start and end time of each person's workday.
- Not keeping that record is fined 250 to 5,000 UMA.
- Salary and benefits cannot go down because of the reduction in hours.
What remains pending are the STPS general rules, which will define who the record applies to and what exceptions there will be. They take effect on January 1, 2027.
| Year | Maximum working hours | Double-time overtime | Triple-time overtime |
|---|---|---|---|
| 2026 | 48 h | 9 h | 4 h |
| 2027 | 46 h | 9 h | 4 h |
| 2028 | 44 h | 10 h | 4 h |
| 2029 | 42 h | 11 h | 4 h |
| 2030 | 40 h | 12 h | 4 h |
Decree published in the Official Gazette of the Federation on May 1, 2026, second and fourth transitory provisions, and article 68 of the LFT. Each change applies from January 1.
Common mistakes
- Resolving each case verbally, without putting it in writing.
- Adjusting the record to match the official schedule.
- Leaving days without a record and without an explanation.
- Treating alike situations the law distinguishes.
- Learning about the problem only when a claim arrives.
What to do now
- Identify whether this case occurs in your company and how often.
- Define the rule and write it into your policy or internal regulations.
- Explain it to the team and the managers.
- Verify that the record reflects the real time.
- Review the month's cases and adjust the rule if needed.
Related terms
What is a labor severance payment (liquidación). The liquidación is what is paid when the company ends the employment relationship without just cause.
Vacations by law: how many days are owed. With one year of work, 12 days of vacation are owed.
IMSS contributions: what they are and who pays them. Employer-employee contributions are the payments to the IMSS that fund social security.
Frequently asked questions
Can the brand be liable?
It depends on how much control it exercises over the staff. Review it with your lawyer.
Does the law require a particular system?
No. It asks that the record be electronic and include the start and end time for each person.
What happens when the STPS publishes its rules?
They will specify who the record applies to and its exceptions. It is worth checking them as soon as they appear in the Official Gazette of the Federation.
Is the maximum workday per day or per week?
There are two limits: a daily one, which did not change, and a weekly one, which drops from 48 to 40 hours between 2027 and 2030.
Is overtime counted by week?
Yes. The cap on double-time overtime is weekly and per person.
Legal basis and sources
- Workday as time at the company's disposal: article 58 of the LFT.
- Decree amending the Federal Labor Law on the reduction of the working week. Official Gazette of the Federation, May 1, 2026.
- Federal Labor Law, current text. Chamber of Deputies.
How we write this content. The Sicheca team writes it from the official text of the law. When something is not yet defined by the authority, we say so. It is general information and does not replace the advice of a lawyer or an accountant.