Mexico’s labor market is directly regulated by the federal labor law. After the 2012 labor amendment, changes in the regulation aimed to make labor market more competitive and flexible. This paper analyzes labor market flexibility after the 2012 labor amendment. We focused our research on flexibility when hiring and firing under the current law. Findings include new rules for hiring such as the inclusion of a new trial period, a new initial training period and seasonal work; as for firing, law now includes new grounds for termination without liability to employer or employee such as harassment and sexual harassment.