The Minister of Modernization, Federico Sturzenegger, defended the labor reform and clarified that it will apply to all labor contracts, not only those signed after its enactment. He also confirmed that the fund for paying severance will be formed with money that currently is part of the pool used to pay pensions, which will consequently be reduced. At the same time, he stated that the new law 'does not permit' payment with supermarket or food vouchers. Regarding severance pay, he acknowledged that there will be limits on the components used in the calculation, but without modifying the base, which is one month per year of service. The minister offered these clarifications in an interview published by the Argentine News Agency. The main points are as follows: Salary • The salary can be agreed upon in pesos or dollars, and the 'in-kind' classification that is maintained does not refer to supermarket or food vouchers, but to other types of benefits common in some industries. • Negotiations at the company level are enabled with the aim of adapting the salary to the needs of each region of the country. Severance Pay • Severance pay will be one month per year of work. • 'The law specifies the details of the calculation to leave nothing to the discretion of a judge.' Vacations • 'The labor law states that you must take your vacation in a very specific period of the year.' 'The idea is to allow for regional or even company-level design of your own labor relationship.' Labor Assistance Fund (FAL) • '3% of labor charges will be integrated into the FAL.' Bank of Hours • 'It allows for the flexibility that the employer and worker, by mutual agreement, can design a more flexible structure.'
