What does the law say about Uber, Didi and Rappi workers?


As of July 2025, Mexico will have a new legal framework to regulate work in digital platforms such as Uber, DiDi or Rappi. The reform to the Federal Labor Law, published on December 24, 2024 in the Official Journal of the Federation, has generated a deep division between delivery drivers and drivers.

While some celebrate it as a "historic victory for workers", others warn that it represents a threat to their freedom, their labor flexibility and even their income.

This division has become more pronounced in recent weeks, just days before the reform's pilot program begins operating on Tuesday, July 1.

"These are paid protests."

Sergio Guerrero, secretary general of the National Union of Workers by Application (UNTA), maintains that the groups of delivery drivers who blocked Paseo de la Reformafor seven hours yesterday are acting under backing and financing from the digital platforms themselves, interested in weakening the reform.

"It seems to us out of all logic that there are workers demanding fewer rights. This scene is staged to make believe that there is a non-conforming majority, but it is not so. There are more of us who do want social security," said Guerrero in an interview with La Silla Rota.

According to the activist, the companies are afraid of absorbing the cost of insuring the delivery drivers, since under the new scheme they, and not the workers, will be the ones to cover most of the IMSS contributions.

"I consider this to be a dirty move by the companies," says Sergio Guerrero. "A few days before the law goes into effect, they are trying to construct a narrative where it appears that the workers themselves are against obtaining rights. But it's not genuine opposition, it's a well-funded staging to stop legislation that forces them, for the first time, to cover social security and assume responsibilities as employers."

"We ask for clear rules."

In contrast, organizations such as Repartidores Unidos de México and the collective Ni un Repartidor Menos, who have led the blockades and protests that have been broken up by elements of the Secretariat of Citizen Security, state that their mobilizations do not seek to stop the labor reform, but to demand greater clarity in its application.

"We are not against the reform, but we demand clear conditions from the IMSS for our incorporation", they pointed out in a pronouncement released after the day of protests in Paseo de la Reforma.

According to these groups, the uncertainty about how income will be calculated, what percentage will be allocated to the payment of fees and how this will impact their personal finances, has generated a climate of fear among app workers.

In addition, they have denounced that they were not included in the dialogue tables with the Ministry of Labor and the IMSS and that decisions were made without adequate consultation with the workers. For this reason, they demand the installation of tripartite dialogue tables, between the government, companies and workers, which guarantees that critical voices are also heard.

"We defend our freedom of work and our autonomy as delivery workers," said the movement's spokespersons, who also accuse "the delivery workers' unions of being the government's paleros".

What exactly does the reform say?

The reform published in the Official Gazette of the Federation on December 24, 2024 amends the Federal Labor Law to include, for the first time, a specific chapter on workers on digital platforms.

Its central objective, says the Government, is "to recognize labor rights to those who provide services in person through apps, such as drivers and delivery drivers".

One of the keys to the new legal framework is the distinction between workers and freelancers.

The criterion for classifying each will be the net monthly income: those who generate at least one minimum monthly salary in force in Mexico City will be considered formal workers, with the right to social security, Christmas bonus, vacations, profit sharing and other benefits.

Those who do not reach that threshold will be classified as self-employed, but with mandatory access to insurance against occupational hazards.

The law also obliges platforms such as Uber, Didi and Rappi to enter into written contracts with each worker.

The employment relationship will be recognized only for the time actually worked; that is, from the time the worker accepts an order until it is concluded. The working day is flexible and discontinuous and people can connect or disconnect freely.

If no activity is performed for 30 consecutive days, the employment relationship will be considered terminated without liability for either party.

Platforms will be obliged to register their workers with the IMSS and Infonavit and to cover the corresponding fees, except for 2.5% of income, which must be contributed by the worker. The right to profit sharing is also contemplated for those who work at least 288 effective hours per year (an average of 24 hours per month).

Finally, a system of penalties is established in the event of non-compliance by companies, such as fines ranging from 250 to 25 thousand times the UMA (up to 2.7 million pesos) depending on the offense, such as not registering the contract, denying access to benefits or not making the algorithms transparent.

The reform in 10 points

  1. Legal recognition: Delivery drivers and drivers will be recognized as workers.
  2. Two categories of workers: There will be workers with full rights if they earn at least one minimum monthly salary.
  3. Mandatory written contract: Platforms will have to sign a written contract with each worker.
  4. Discontinuous employment relationship: Only the time between the acceptance and conclusion of a service will be considered as work.
  5. Automatic termination: If a worker does not connect or accept services for 30 consecutive days, the employment relationship will be terminated without legal consequences.
  6. Mandatory social security: Companies must register their workers with IMSS and Infonavit. They will pay most of the contributions; the worker will pay only 2.5?% of his income
  7. Profit sharing: Those who work at least 288 effective hours per year will have the right to participate in the company's profits.
  8. Algorithmic transparency: Platforms must explain how their algorithms work.
  9. Flexibility: The reform guarantees that workers can connect and disconnect when they want to.
  10. High penalties: Companies that fail to comply with these rules may receive fines of up to 2.7 million pesos.

"It's not enough, but it's a starting point."

Although the reform represents "an advance in the legal recognition of delivery drivers and platform drivers," Sergio Guerrero of UNTA points out that the new legal framework has important gaps.

"It limits access to rights only to those who generate income above the minimum wage, excludes waiting time as part of the working day and does not oblige companies to assume any responsibility for work tools," he claims.

In spite of this, he considers that it is a starting point to dignify this activity. "It has serious flaws, yes, but we are finally no longer seen as mere partners in an app. Today the law recognizes us as workers and that is already a step forward," he says.

Delivery drivers blockade Reforma and police break up protest

This Wednesday, June 18, after almost seven hours of blocking Paseo de la Reformaand Circuito Interior, elements of the Secretariat of Citizen Security (SSC) dissolved the protest led by delivery drivers and platform drivers. The protesters reject the pilot test of the labor reform for digital platform workers, which will go into effect on June 22.

In the face of the police deployment, the protesters stated to La Silla Rota that they accepted a dialogue table agreed for this Thursday at 10:00 a.m. at the Ministry of the Interior.

Elements of the Secretariat of Citizen Security arrived in the area where the passage of motorists was blocked and asked the demonstrators to move. The delivery workers were encapsulated and decided to end their demonstration.

The workers denounced that they had not been taken into account in the discussions that the Secretary of Labor and the Mexican Social Security Institute (IMSS) had held during the last six months, for which reason they do not know what discounts and quotas they will be subject to as of next Sunday.

"We want to know the small print of this law. Social Security has not given us all the fees that they are going to charge us. Unfortunately, we have been asking for this since December 24 and they have not explained anything to us," explained Ulises Toledo, representative of the drivers to La Silla Rota.

In response to the protests, at 11:00 a.m., the IMSS authorities and the Secretary of Labor received seven representatives of the delivery drivers and drivers to establish a dialogue table.

However, the delivery drivers and drivers assured that if their demands are not met they will maintain the blockades and expand them to three more avenues in Mexico City.

The delivery drivers and drivers demand:

- The tabulation of the percentages to be applied to the wages of digital platform workers.
- The worker/employer percentage to be deducted from their salaries.
- Continue participating in dialogue tables during the pilot test.
- Transparency in all charges that the IMSS will make to workers.

"We don't want Social Security".

In addition to this, other delivery drivers demanded not to be affiliated to Social Security as they said that taxes will be deducted from their total income, without taking into account that they spend on their vehicles, gasoline, backpacks, etc.

"Our net earnings are 30% of what is reported to SAT, if they affiliate us to IMSS, they will take more money from us."

Context: in October, President Claudia Sheinbaum signed an initiative to grant social security, accident insurance and labor rights to workers of digital platforms, such as Uber, DiDi, among others.

The Mexican president highlighted that this initiative will benefit more than 658 thousand workers throughout the country.

The labor reform would create a new article in the Federal Labor Law to grant social security, accident insurance and labor rights to workers of digital platforms such as Uber, DiDi and Rappi.

LEGISLATIVE AMENDMENTS

  • A new chapter is added to the Federal Labor Law to regulate work on platforms for drivers and delivery drivers.
  • A transitory regime is established for the IMSS to implement a mandatory pilot for companies.

FLEXIBILITY AND FREEDOM

  • Workers will continue to choose their work schedules, as well as the platform(s) for which they work.
  • Discontinuous subordination and limited to the time actually worked.
  • Without affecting or changing the business model.

CLARITY IN WORK RULES

  • Contract registration with the Federal Center for Labor Conciliation and Registration.
  • Algorithmic Labor Management Policy, which clearly explains the rules of the algorithm, this document will be part of the employment contract.

SOCIAL PROTECTION

  • Workers who earn at least one minimum wage will be entitled to IMSS insurance and services: occupational risks, illness, disability, maternity, pensions and day care centers.
  • They will also be entitled to INFONAVIT credits.
  • Work accident insurance for all workers, regardless of the amount of their income, for the time actually worked.

RULES FOR DISCONNECTION, WITH AND WITHOUT LIABILITY FOR THE PLATFORMS.

  • In serious cases, it may be immediate, due to non-compliance with orders or rules, with at least three days' notice prior to disconnection.
  • In all cases there must be review mechanisms managed by people and not by algorithms or computers.

OTHER PROVISIONS

  • Gender perspective, including specialized protocols for dealing with cases of harassment, bullying or similar.
  • Right to profit sharing.

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