By industry · 4 min read
Time clock for software companies and startups: working-time record with no devices
Short answer
A software company can meet the electronic working-time record requirement from each person's phone, wherever they are. The law requires recording each person's start and end time; it does not require a wall-mounted time clock.
How work happens at a software company
A software company has developers, design, product, support and sales, with remote or hybrid work and support on-call shifts. That creates three challenges for measuring working time:
- The team is spread across several cities.
- Support on-call shifts happen at night.
- Working by objectives is confused with having no workday.
What the law requires of software companies and startups
Since the 2026 reform, the Federal Labor Law requires recording electronically the start and end time of each worker's workday (article 132, section XXXIV). Failing to do so is fined 250 to 5,000 UMA. The STPS will define who it applies to and what exceptions there will be. The details are in the reform guide.
Night shifts. A night shift lasts 7 hours at most, one less than a day shift. It helps if the record separates night hours from day hours.
Work from home. Someone who works remotely also has working hours. The law does not exclude them from the record.
How to record working time at a software company
- Register your team and agree on a reference schedule.
- Each person records the start and end of their day from their phone.
- Long breaks are also recorded.
- The report shows each person's work mode.
Example. A support on-call shift in which someone handles an incident at 2:00 is a night shift, even if it is done from home.
Types of shift
| Shift | Schedule | Daily maximum |
|---|---|---|
| Day | Between 6:00 am and 8:00 pm | 8 hours |
| Night | Between 8:00 pm and 6:00 am | 7 hours |
| Mixed | Both day and night, with less than 3 and a half night hours | 7 and a half hours |
Articles 60 and 61 of the LFT.
Common mistakes at a software company
- Keeping attendance from memory or in a notebook.
- Recording the clock-in and forgetting the clock-out.
- Not separating night hours, which have a lower daily maximum.
- Assuming that someone who works from home has no working hours.
What to check every day and every week
Every day.
- Who did not record their clock-in or clock-out.
- Shifts that went over their daily maximum.
- Departures later than planned.
Every week.
- Each person's overtime against the weekly cap.
- Days when someone came close to 12 hours.
- Rest days that were actually taken.
How much an overtime hour costs: example in pesos
Suppose a daily wage of $600 on a day shift. The ordinary hourly rate is $75. One overtime hour at double time costs $150 and one at triple time, $225. If a person works 9 overtime hours in a week in 2027, that is $1,350 extra.
It is an example to show the calculation, not a reference wage for the sector.
What changes every year, from 2026 to 2030
| 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.
Related terms
What is PTU, or profit sharing. PTU is the workers' share in the company's profits: 10% of the company's taxable profit, which is distributed among its staff.
Mandatory rest days in Mexico. These are the holidays set by article 74 of the Federal Labor Law.
INFONAVIT contributions: what they are. The INFONAVIT contribution is 5% of each person's contribution base salary, paid by the company.
Frequently asked questions
Does a software company need to buy a time clock?
No. The law requires an electronic record of working time, not a device. An app on a phone complies.
What options are there for recording working time?
An app on each person's phone, a shared tablet or a clock connected to a system. All three comply if they generate an electronic record per person, with a start and an end time.
How are shifts that cross midnight recorded?
Clock-in and clock-out are saved with their actual date and time, and the hours are added up even if the day changes.
Does someone who works from home also clock in?
Yes. They record the start and end of their day from their phone.
Is overtime counted by week?
Yes. The cap on double-time overtime is weekly and per person.
Legal basis and sources
- Electronic working-time record: article 132, section XXXIV, of the LFT and fifth transitory provision of the decree.
- Overtime: articles 66 and 68 of the LFT and fourth transitory provision of the decree.
- 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.