Two-thirds of small and medium-sized enterprises (SMEs) in Mexico continue to work remotely despite being unable to comply with the country’s strict teleworking laws.

According to a survey by US computer giant Microsoft, almost 10% of SMEs said they can afford to meet legal requirements.

The Mexican federal government passed a law regulating remote working earlier this year as more companies moved their workforce home in response to the COVID-19 pandemic.

The new law requires companies to provide and maintain their employees’ computing devices during home working hours. They also need to pay the costs of internet and electricity consumed while working on behalf of their employees.

In the survey, 44% of SMEs said that all of their employees worked from home, while 37% said that their employees worked in the office a few days a month.

A growing number of cyber attacks are also worrying SMEs in Mexico, according to the study. Most companies cannot afford to offer technical training to their employees or move their data to the cloud, the report said.

Despite the hurdles, thousands of other SMEs plan to adopt the remote working model in the coming months.