On February 24, 2026, a Legislative Initiative to amend Article 7 of the Federal Labor Law (“LFT”) was introduced in the Chamber of Deputies proposing significant changes to the regulations governing the hiring of foreign workers in Mexico.
Although the Proposed Reform is still part of the legislative process and, therefore, has not been approved or entered into force, its potential implementation could have a significant impact on the hiring and international mobility strategies of companies operating in Mexico, particularly those that rely on highly specialized foreign talent.
Given this scenario, it is advisable for employers to understand the scope of the proposal and proactively assess the potential labor and immigration implications.
The Importance of the Current Framework
Currently, the Federal Labor Law stipulates that at least 90% of a company’s workforce must be Mexican. Furthermore, in the case of technical and professional staff, foreign workers may not exceed 10% of the workforce in each specialty, except for the exceptions provided for by the law itself.
In practice, many companies—particularly in sectors such as manufacturing, technology, engineering, and specialized services—hire foreign workers without periodically verifying compliance with these ratios.
Failure to comply with these provisions can lead to labor disputes, administrative penalties, and, in certain cases, risks associated with the immigration status of the workers involved.
What does the Proposed Reform seek to achieve?
Among the main changes contemplated by the Proposed Reform are the following:
- Reducing the minimum proportion of Mexican workers from 90% to 75%.
- Modifying the rules currently applicable to the hiring of foreign workers in technical and professional categories.
iii. Incorporating employment priority mechanisms for migrants in vulnerable situations.
- Maintain and strengthen the obligation to train Mexican workers.
- Exclude certain strategic management positions and government sectors from some of these flexibilization measures.
The Proposed Reform seeks to address a reality that has evolved significantly in recent years: increased migration flows, the growing international mobility of talent, and the need to fill specialized positions in certain economic branches.
Practical Implications for Businesses
If approved, the Reform could have several operational and compliance implications:
- Greater flexibility in hiring specialized foreign talent.
- The need to review the current workforce composition and hiring criteria.
iii. Adjustments to internal policies, employment contracts, and human resources processes.
- Increased attention to compliance with immigration obligations, including work authorizations, procedures with the National Institute of Migration, and corresponding corporate updates.
- Potential disputes or challenges during the implementation period, particularly in sectors with a high proportion of foreign personnel.
In light of the foregoing, employers are advised to understand the scope of the proposed reform and proactively assess its potential labor and immigration implications. This is particularly relevant considering that any potential easing of labor-related restrictions would not alter the immigration requirements currently in force. Accordingly, foreign workers would continue to be required to hold the appropriate immigration status and work authorization in order to provide services in Mexico.
Current Status: The Law Remains Unchanged
For now, Article 7 of the Federal Labor Law remains in effect in its current form, and companies must continue to comply with the rules currently in force.
However, the Proposed Reform reflects a discussion that will likely continue to gain prominence in the coming months, driven by the demand for specialized talent, international migration trends, and the needs of certain productive sectors.
What do we recommend at this stage?
Companies that begin assessing the potential impact of this Proposed Reform early on will be better prepared to adapt to any legislative changes and mitigate compliance risks.
Therefore, we recommend:
- Review the current composition of the workforce against the requirements set forth in the current Article 7.
- Review the contracts and immigration status of foreign workers.
iii. Identify positions that could be affected or benefit from a potential reform.
- Evaluate possible adjustments to hiring policies and international staff mobility.
Our Attorneys have extensive experience in Labor and Immigration Law, enabling them to assist companies in risk assessment, the design of compliance strategies, and the implementation of preventive measures that allow them to face potential regulatory changes with greater certainty. Anticipating such scenarios facilitates strategic decision-making and strengthens organizations’ ability to respond, regardless of the final outcome of the legislative process.
Elvia Ríos Saldaña|Partner
+52 (33) 38171731 Ext. 228|erios@vahg.mx
Luis Andrés Estrada Intriago |Senior Associate
+52 (33) 38171731 Ext. 224|lestrada@vahg.mx
**The publication of this document does not constitute legal, accounting or professional advice of any kind, nor is it intended to be applicable to particular cases. This document refers to laws applicable in Mexico.