Jaime Rodríguez
Diana Vázquez
Alonso De la Vallina
Arturo Hidalgo

Social Security Amendment for App-based Delivery Drivers and Rideshare Drivers

On October 16th, 2024, President Claudia Sheinbaum proposed an amendment to the Federal Labor Law, aiming to grant labor rights to app-based delivery drivers and rideshare drivers.

In accordance with to data provided by the Tax Administration Service (SAT), 658,000 people are employed through such platforms, with 272,000 of them earning an income equivalent to or above the monthly minimum wage.

The amendment has the following objectives:

1.- To formalize the work done by digital platform delivery drivers and rideshare drivers under the framework of discontinuous subordination, maintaining flexibility in scheduling and autonomy, meaning they will continue to choose the platforms they wish to work for.

2.- To ensure that workers and their families gain access to social security.

If workers earn more than one minimum wage, they will be entitled to insurance and services from the Mexican Social Security Institute (IMSS), including coverage for work-related risks, illness, maternity, disability, pensions, and childcare, as well as access to INFONAVIT housing loans.

Initially, workers will be enrolled with IMSS at the beginning of the month without payment, and at the end of the month, a retroactive adjustment will be made for payment.

Regardless of their income, workers will be entitled to have an accident insurance for the time they are actively working, with the digital platform they are working for responsible for providing coverage through IMSS.

If workers do not earn at least the minimum wage, they may choose to enroll in the independent worker insurance program with IMSS.

3.- To require digital platforms to register their labor contracts with the Federal Center for Labor Conciliation and Registration.

These contracts must clearly explain the rules of the algorithm for service assignment and the rules for disconnecting workers from the app, with or without responsibility for the digital platforms.

It is proposed that there should be human-managed mechanisms, not algorithms, with at least three days’ notice given to workers before they disconnect the app.

4.- To ensure workers receive profit-sharing payments.

5.- To include provisions to address cases of harassment and abuse.

Ministry of Labor Marath Bolaños López noted that around 30 meetings have been held with company representatives, worker organizations, and government bodies to develop this amendment, which will be submitted to Congress for discussion in the coming days.

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Written by:

Partner

Jaime is a Partner at Ibarra del Paso Gallego, where he leads the Labor and…

Associate

Diana is an Associate at Ibarra del Paso Gallego, specializing in Labor & Employment Law….

Associate

Alonso is an associate at Ibarra del Paso Gallego, specializing in Labor & Employment Law….

Associate

Arturo is an Associate at Ibarra del Paso Gallego, specializing in Labor & Employment Law….

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