Economy Politics Health Local 2026-02-19T02:23:40+00:00

Argentina Passes New Labor Law with Reduced Workweek

Argentina has passed a new law reducing the maximum workweek to 48 hours, introducing new parental leave rules, guaranteeing the right to 'digital disconnection,' and changing severance pay conditions. The opposition has presented its own 'counter-reform' bill.


Argentina Passes New Labor Law with Reduced Workweek

Argentina has passed a new labor law introducing significant changes for workers. The maximum workweek is reduced to 48 hours, with a daily limit of 8 hours. A new 36-hour workweek will be phased in gradually over 4 years without a reduction in pay. Workers will have the right to a share of 10% of the company's annual net profits, excluding new businesses and cooperatives. The law also introduces new rules for parental leave. Pregnant workers are prohibited from working for 126 days (45 before and 81 after birth), while their partners are entitled to 45 days after the child's birth. A "social salary" equivalent to 50% of the minimum wage will be introduced for informal workers. The right to "digital disconnection" after work hours is guaranteed, and employers cannot penalize employees for not responding to work-related communications outside of work. Severance pay must now be paid in a single installment. The National Bank will provide loans to small and medium-sized enterprises to facilitate this. For app-based delivery drivers and couriers, a presumption of an employment relationship is established. The minimum wage cannot be lower than the cost of the "basic food basket" for a four-person household in the Greater Buenos Aires area. Subsidies for employers hiring young people aged 18 to 24 are created. Joint occupational health and safety committees are mandatory for establishments with 50 or more employees. The law sets limits on the use of artificial intelligence in the workplace, prohibiting fully automated decisions on hiring, task assignment, disciplinary actions, and dismissals. A new complementary annual income is created for self-employed individuals in categories A, B, C, and social categories. The opposition presented its own "counter-reform" bill, proposing to reduce the maximum workweek to 42 hours or 7 hours per day.

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