In Buenos Aires, the government of Javier Milei has introduced a new labor reform that has sparked fierce debate among specialists and unions. The central point of contention is Article 208, which radically changes the rules for paying sickness and accident benefits. Under the new law, workers who are injured or become ill as a result of a 'voluntary and conscious activity involving a risk to their health' will receive only 50% of their salary. Conversely, if the reason for inability to work is not related to such an activity (e.g., a severe flu or an unforeseen traffic accident), the benefit will be 75% of their wages. This means workers lose their right to full pay during illness or recovery. Unions and legal experts criticize the new norm, calling it 'highly subjective' and a 'tool for direct salary cuts'. They argue it gives employers almost discretionary power over an employee's private life and will lead to an unprecedented level of litigation. The debate on this issue is just beginning, and it is expected that the courts will have to set a precedent to define the real scope of this controversial article.
Argentina's Labor Reform: New Sick Pay Rules Spark Controversy
Argentina's new law reduces sick pay to 50% or 75% if an injury is deemed to result from a 'voluntary risky activity', sparking criticism from unions who call it a salary-cutting tool.