Working Time Reductions Across The Americas: A Global Update

Across the Americas, shorter working weeks are moving from policy debate to legal reality. Governments are responding to social and economic pressure to rebalance working time, often without reducing pay. Although the pace and structure of reform varies, employers face a common challenge. They must adjust working patterns, staffing models and systems while maintaining productivity and compliance. These reforms also raise practical questions around scheduling, overtime and employee engagement.

In this article, we explore Brazil’s proposed reforms, Mexico’s newly enacted changes, and how employers in Chile and Colombia are navigating reduced working hours.

Brazil: proposal to move towards a 40-hour week

On 15 April 2026, Brazil’s President submitted a Bill to Congress proposing to reduce maximum weekly working hours from 44 to 40, with no salary reduction. This runs alongside a separate constitutional amendment dealing with the same issue. The expectation is that the constitutional amendment will be approved first. Following this, the Bill will pass through the legislative process.

The Bill supports broader proposals to abolish the traditional ‘6×1’ work schedule. It would effectively introduce a ‘5×2’ schedule, with eight hours per day over five days. The Bill is subject to an urgent procedure, with voting expected in May 2026, although delays are possible. Any reduction will be phased in gradually if approved.

This is a fast-moving situation, but with the government recently reaching an agreement with the Lower House speaker, the reduction is getting closer to reality.

Mexico: reform formally enacted

On 1 May 2026, Mexico enacted a reform to its Federal Labour Law reducing weekly working hours. This follows the constitutional reform issued on 3 March 2026.

From 1 January 2027, working time will reduce by two hours per year, reaching 40 hours in 2030. The reform also increases the limit for double paid overtime and introduces an obligation on employers to maintain an electronic record of each employee’s workday. The record must include start and end times. It must also be made available to the authorities upon request. The Labour Ministry is expected to issue specific regulations regarding the scope and potential exceptions to this obligation before 1 January 2027.

For employers with operations in Mexico, it is essential to implement the necessary operational adjustments to comply with the new legal limits on working hours, as well as to adapt their internal systems to the updated overtime rules. In particular, planning for the implementation of the electronic timekeeping system before 1 January 2027, once the specific regulations mentioned above have been issued, will be critical.

Additionally, it will be important to review individual employment agreements, collective bargaining agreements, internal work regulations, vacation policies, leave policies, and other documents related to working hours to determine whether updates are required in light of the reform.

Chile and Colombia: implementation underway

Brazil’s proposals are still working their way through the legislative process, while employers in Mexico are now preparing for a phased transition. Elsewhere in the region, Chile and Colombia are already implementing reduced working weeks, shifting the focus from planning to practical compliance.

Chile

Chile reduced the standard working week from 44 to 42 hours on 26 April 2026 under its ‘40-Hour Law’, with a move to 40 hours scheduled by 2028.

In practice, however, compliance has not always been easy. As Marcela Salazar, Partner at Ius Laboris Chile, explains: ‘The compliance challenge of Chile’s working hour reduction lies in adapting the new daily schedule, especially this year, when we had a two-hour reduction.’

One particularly challenging area for employers has centred on reaching agreement with the workforce. The law requires mutual agreement between the employer and employees, or their union regarding the allocation of the reduction of weekly working hours. If no agreement is reached, employers must apply a proportional reduction. For five-day schedules, one hour must be cut from the end of a designated weekday. For six-day schedules, at least 50 minutes must be deducted on one day and the remaining 10 minutes on another. According to Marcela, this has proven challenging: ‘In practice, reaching these agreements has proven difficult for employers, even where employers apply the reduction proportionally, as this legal approach does not always fit the operational requirements of the company.’

Colombia

In Colombia, employers must reduce the statutory working week to 42 hours from 15 July 2026. This is the final scheduled reduction. Reflecting on the employer experience, Catalina Santos, Partner at Ius Laboris Colombia, explains how organisations have adapted.

‘The experience of Colombian employers in implementing the reduction of legal working time has been mixed but generally manageable. Many companies have adapted through reorganising work schedules, productivity improvements, and greater use of flexible or hybrid work models. While some employers have reported higher operational costs and challenges in sectors requiring continuous operation, others have seen positive effects on employee well-being, motivation and retention.’

For Catalina, the transition has highlighted the importance of workforce planning and efficiency to maintain competitiveness while complying with the gradual reduction required by law.

These insights may prove valuable elsewhere as other countries move towards shorter working weeks.

Takeaway for employers

Employers should monitor reforms closely and prepare early. They should review working schedules, staffing models, payroll and time recording systems, and engage with employees to manage change and reduce compliance risk