Buenos Aires, December 8 (NA) – Within the framework of second-generation economic reforms, the Government has included its 'modernization' labor law on the agenda for extraordinary sessions. This is a package of measures that amends the old Labor Contracts Law, updating the regulations in a flexible manner, thereby reducing costs for employers and weakening the relative bargaining position of workers.
The unions of the CGT and, mainly, the two CTA have been on guard against an offensive that they interpret as detrimental to acquired rights and ineffective in generating the supposed benefits that the Government claims, such as an increase in investments and productivity.
The labor reform is expected to be initially treated in the Senate, while the Chamber of Deputies will prioritize the treatment of the 2026 Budget and the Law of Fiscal Innocence during the present month.
The Argentine News Agency (NA) had access to a draft of the Labor Modernization project, which introduces significant modifications to the work regime.
'The rest of the clauses (obligational) will maintain their validity only by agreement of the parties,' it is clarified.
Immunity or union protection Immunity from possible dismissals or suspensions without just cause, or modification of working conditions, runs from 'the formal notification to the employer of his candidacy for a union representation position.'
'This protection will apply only to legally elected delegates or union representatives who hold the positions of principals,' it is clarified, since 'those designated as alternates and/or delegates will maintain relative protection, and the provisions of absolute stability will not be applicable to them.'
'Each delegate of the personnel is granted, for the exercise of their functions, a credit of up to 10 paid monthly hours, unless the applicable collective agreement provides for a larger quantity,' the text states.
'Only the norms referring to the working conditions established by them (normative clauses) will remain in force until a new collective convention comes into force or there is an agreement of parties that extends it.' Below is a detail of the main changes.
Presumption of existence of an employment contract In the current version, 'the fact of providing services presumes the existence of an employment contract,' while with the modification proposed by the Executive, that presumption 'will not apply when there are contracts for works or professional services or trades, or any other modality that includes the provision of services without an employment relationship, and receipts or invoices corresponding to these forms of contracting are issued.'
Joint liability in the hiring of third parties The joint liability of the main company that hires a third company to provide services is eliminated. 'The workers will be considered direct employees of those who register the labor relationship, without prejudice to having been hired with the aim of using their performance or providing them to third companies,' it stipulates. 'Whenever one or more companies, even if each of them has its own legal personality, are under the direction, control, or administration of others, or are related in such a way that they constitute a permanent economic complex, they will be jointly liable for the purposes of the obligations incurred by each of them with their workers and with the social security organisms, only when there have been fraudulent maneuvers or reckless conduct that lead to insolvency or non-payment by the employer company,' the law states.
The original version of Law 20.744 states that these companies will be 'jointly liable' for their obligations to their workers in all cases, and not only when there are fraudulent maneuvers.
Payment in local or foreign currency The possibility is incorporated for the employer to remunerate the worker in foreign currency, in addition to the national currency, species, lodging, or food, modalities already included in the current regime.
In addition, it is established that 'monetary remunerations due to the worker must be paid, under penalty of nullity, exclusively through the accreditation in an account opened in their name in a banking entity, in an official savings institution, in Payment Service Providers authorized by the Central Bank of the Argentine Republic for such activity, or in other categories of entities that the applying authority authorizes and considers suitable.'
Vacations 'The employer must grant the enjoyment of vacations for each year within the period between October 1 and April 30 of the following year,' beyond exceptions that are justified by the characteristics of the activity.
In turn, 'the start date of the vacations must be notified in writing to the worker with an advance of no less than forty-five (45) days, without prejudice to the fact that collective labor agreements or other agreements celebrated with the union representation in the company may establish different systems, according to the particularities of each activity.'
Likewise, 'the employer and the worker may agree to the fractionation of the vacation period, as long as each of the segments is not less than seven (7) days.'
Time Bank 'The time bank may be used to compensate for a longer workday on one day with a shorter one on another, as long as the maximum legal weekly workday is not exceeded, or the one stipulated by the specific applicable labor regime, be it a special law and/or collective labor agreement,' the proposal establishes.
Notice of termination of the employment contract The current law establishes that when seniority is greater than 10 years, the notice of dismissal to a worker must be three months.
With the labor reform projected by the Government, the notice for any worker with more than five years of seniority is two months.
The one-month notice is maintained when seniority is less than five years.
Indemnification for dismissal without just cause The criterion of payment to the worker of 'an indemnification equivalent to ONE (1) month's salary for each year of service or fraction greater than THREE (3) months, taking as the basis for calculation the best monthly, normal, and habitual remuneration earned during the last year or during the time of service if it were less' is maintained.
However, it is specified that 'non-monthly payment concepts such as the complementary annual salary, vacations, prizes that are not monthly, etc., will not have an impact.'
Indemnification for unjustified dismissal before the term According to the Government's labor reform, when a worker is unjustifiably dismissed before the expiration of the agreed term, they can only receive the indemnification corresponding to the termination of the contract, but they can no longer claim additional sums of money for damages and losses, as established by current regulations.
Labor Severance Fund 'By means of a collective labor agreement, the parties may substitute the present indemnitory regime for a fund or labor severance system whose cost will be borne by the employer,' the law states.
Employer Contributions A three-point reduction in employer contributions for those who comply with contributions to the Labor Assistance Funds.
Probationary Period 'The employment contract for an indefinite term shall be deemed to have been entered into during the first six (6) months of its validity,' allowing dismissal without indemnification during that period.
The Law of Bases had already extended the probationary period from 3 to 6 months as a general term, with the possibility of extension to 8 or 12 months by collective agreement, especially for SMEs.
'The employer may not hire the same employee more than one (1) time using the probationary period,' it is estimated.
Platform-based Delivery Services Regime It must guarantee 'the freedom of connection of the independent platform messenger of the urban messaging service.'
'The independent messenger will be free to connect to any of the platforms through their respective applications, offering their services in the shifts and during the time they find convenient and to accept and/or reject orders at their convenience. They will also be free to define the way in which they provide the service,' it is indicated.
For its part, the employer has the obligation to 'facilitate access to road safety elements applicable according to the type of vehicle.'
Limitation of the ultra-activity of collective agreements Collective agreements with an expired term will not maintain their effects over time until the signing of a new collective agreement.
'The exercise of this right cannot generate the interruption of activities in the work area,' it is clarified.
'Very serious' infractions They will be considered 'very serious infractions' when any of the following hypotheses are met: a. affecting the freedom of work of those who do not adhere to a strike measure through acts and/or facts and/or intimidations or threats; b. causing, and/or inciting and/or organizing the blockade or taking an establishment; preventing or partially obstructing the entry or exit of persons and/or things to the establishment; c. causing damage to persons or to things of property of the company or of third parties, whether or not they are in the employer's establishment (installations, merchandise, inputs and raw materials, tools, etc.).
