The labor modernization bill, set to be voted on by the Senate tonight with the backing of La Libertad Avanza and dialogists, reforms the compensation system, overtime pay, allows for company-level agreements, and reduces employer contributions to incentivize hiring. The main points of the initiative to be passed by the Senate are as follows: Agreements - Company-level agreements are permitted, and it establishes that a broader agreement cannot alter or dictate the terms of a narrower one. - Upon the expiration of a collective bargaining agreement, there will be a one-year period to negotiate its clauses, mirroring the extension of collective agreements after their term, and also setting a one-year deadline from this law's enactment for convening the parties. - Assemblies may be held with prior employer authorization. Layoffs - Compensation will be capped at one year's average salary under the agreement, excluding bonuses, prizes, and other special non-monthly items. - A Labor Assistance Fund (FAL) will be created to cover layoffs for firms unable to afford them, funded by a 1% contribution from large companies that go to ANSES, and 2.5% from large companies. - Labor courts cannot increase labor credits by more than the inflation rate plus 3% annually. - Small and medium-sized enterprises (SMEs) can pay severance in 18 installments, while large companies can do so in 12. Unions - Voluntary and mandatory worker contributions to unions are maintained, but capped at 2%. - Union social welfare funds will retain the 6% employer contribution, instead of the 5% proposed by the government. Banks - Banks will be the only authorized entities to pay salaries, and it was ruled out that digital wallets could perform this function. Justice - National labor justice will be transferred to the city of Buenos Aires. Overtime - A 'time bank' will be created to compensate overtime with compensatory leave or another system, always respecting minimum legal rest periods. Vacations - Vacations can be taken between October 1 and April 30 and can be split but must include a continuous seven-day period. Medical Certificates - A series of validity requirements are established for medical certificates justifying absences due to illness or non-fault accidents. - In case of a dispute over a medical certificate between an employer and a worker, a medical board may be requested. New Jobs - Incentives will be provided for companies that hire new personnel, in the form of reduced employer contributions. RIMI - A new Investment Regime for SMEs for new ventures is created, with benefits for the amortization of Profits Tax and VAT. Platforms - Delivery workers will be classified as 'independent providers' without an employment relationship, though companies will be required to provide accident insurance and training for these workers. __IP__Taxes - Internal taxes on boats, planes, cars, cell phones, and sanctuary products are repealed, but with obligations for companies such as accident insurance, road safety training, and transparency in blocking. It establishes a regime for private mobility and/or delivery services through technological platforms, defining the rights and obligations of independent providers, as well as the obligations of the platform-owning companies.
