Labor audits will focus on the consistency and traceability of data on hours worked and overtime. Although 95 % of large companies track working hours, the challenge lies in the quality of the information. Implementations such as Time Block reduce errors in overtime pay by 15 %.

Although nearly 95 % of companies with more than 3,000 employees already use some form of electronic system to track attendance and work hours, a significant proportion faces inconsistencies stemming from shift changes, variable work schedules, operational issues, and incorrect overtime calculations. Therefore, as the discussion regarding the reduction of the workweek to 40 hours in Mexico progresses, the challenge for companies will be to ensure that the information they generate is accurate, consistent, and verifiable in the event of an audit by the authorities.

“The conversation shouldn't focus on whether a company has an electronic record system or not; in large corporations, that's already a reality. What's changing is the level of demand on the quality, consistency, and traceability of the data that these systems generate,” indicates Tomás Kachadourian, Business Intelligence Director at InfoBlock.

Although public debate has focused on the mandatory nature of electronic record-keeping, the traceability of information related to clock-ins, clock-outs, breaks, shift changes, and overtime could become a key factor in certifying compliance with labor obligations. To this end, solutions such as Time Block reduce errors in overtime pay by 15 %.

Hence, the next regulatory step will focus on the quality of the information generated by these systems and the organizations' ability to verify that the hours recorded match those reported and paid to workers.

According to an InfoBlock analysis of recent proposals by the Ministry of Labor and Social Welfare (STPS), labor enforcement could move towards greater use of digital tools and automated information validation processes.

“The best-prepared organizations will be those with the best technology that allows them to generate reliable, auditable, and consistent data for any review,” highlights Kachadourian.

The issue gains relevance due to the magnitude of the reform. Data from the National Institute of Statistics and Geography (INEGI) reveal that around 13.4 million people currently work more than 40 hours per week, while just over two million exceed 58 hours. For specialists, this scenario will increase pressure on organizations to have timekeeping records capable of accurately verifying the time actually worked and the corresponding payment of overtime.

For the areas of Human Resources, payroll, labor relations, and compliance, the gradual reduction of the workday represents an opportunity to review how working time is managed within organizations, as labor inspections will increasingly tend to be digital, remote, and supported by documentary and electronic evidence, which will increase the relevance of having reliable and auditable records.

The new regulatory environment will require visibility into entries, exits, breaks, shift changes, incidents, and overtime, as well as the ability to integrate that information with payroll and corporate reporting processes.

This article was published on the website TECHLA