Law and fines · 4 min read
Fine for not keeping the electronic working-time record
Short answer
The fine ranges from 250 to 5,000 UMA. With the 2026 UMA of $117.31 per day, that is $29,327.50 to $586,550 pesos. It is in Article 994, section IV Bis, of the Federal Labor Law.
How it is calculated
The number of UMA is multiplied by its current daily value. Since the UMA changes every February 1, the amount in pesos goes up each year.
How to do the math by hand
The minimum fine is 250 × $117.31 = $29,327.50. The maximum is 5,000 × $117.31 = $586,550. If the penalty is calculated per person, with 5 people the range goes from $146,637.50 to $2,932,750.
Who imposes it
The Ministry of Labor and Social Welfare, through its inspections. The authority sets the amount within the range in each case.
The other cost
Without a record, in an overtime lawsuit the company loses its best evidence.
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
- Assuming the obligation does not apply because you are a small business.
- Believing a device or fingerprint is required.
- Confusing the date the law took effect with the date of the STPS rules.
- Reading the 2030 caps as if they already applied.
- Trusting a provider that claims to be certified by the authority.
What to do now
- Read what article 132, section XXXIV, requires.
- Review how you record your staff's clock-in and clock-out today.
- Choose an electronic recording method.
- Agree on it in writing with each person.
- Check the STPS general rules when they are published.
Related terms
What is the Federal Labor Law (LFT). The Federal Labor Law governs the relationships between companies and workers in Mexico: working hours, salary, rest, benefits and termination.
What is a finiquito (final settlement). The finiquito is the payment of what the company owes a person when the employment relationship ends, regardless of the cause.
Aguinaldo: how much it is and how it is calculated. The aguinaldo (year-end bonus) is an annual payment of at least 15 days of salary, which must be paid before December 20.
Frequently asked questions
Is the fine per company or per worker?
Article 992 provides that, when the same act affects several people, the penalty is imposed for each one. How it will be applied to the record will depend on the authority.
Are fines already being applied?
The STPS rules that define who the obligation applies to take effect on January 1, 2027.
Where do I find the official text?
In the Official Gazette of the Federation of May 1, 2026 and in the current version of the Federal Labor Law published by the Chamber of Deputies.
Does this replace the advice of a lawyer?
No. It is general information. For decisions about your company, consult a labor 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.
Legal basis and sources
- Electronic working-time record: article 132, section XXXIV, of the LFT and fifth transitory provision of the decree.
- Fines: articles 992, 994 and 1002 of the LFT.
- Working hours: articles 58 to 64 of the LFT and second transitory provision of the decree.
- 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.