President Javier Milei promulgated the Labor Modernization Law No. 27.802, which introduces profound changes to the Argentine labor regime. The law modifies the scope of application of the Labor Contract Law, excluding self-employed workers, technology platform providers, and persons deprived of liberty. It redefines work as "any lawful activity performed in favor of someone who has the authority to direct it, in exchange for remuneration". The new Article 245 establishes that severance pay for dismissal without cause is equivalent to one month's salary per year of seniority, calculated on the best monthly, normal, and habitual remuneration of the last year. The law creates the Labor Formalization Incentive Regime (RIFL), with mandatory monthly contributions of 1% for large companies and 2.5% for micro, small, and medium-sized enterprises (MSMEs). A central axis of the reform is the creation of Labor Assistance Funds (FAL), which employers must constitute to cover indemnification obligations. For technology platforms, the law establishes that their providers are independent contractors, not employees. Platforms must provide them with accident insurance, access to training, and digital complaint mechanisms. Employers who incorporate unregistered or unemployed workers will pay a reduced contribution rate of 2% for the first four years of the new employment relationship. From January 1, 2027, special statutes for commercial travelers, journalists, and glass workers will be repealed, and they will be governed by the general regime.
