The Argentine government has unveiled a draft labor reform bill to be debated by Congress in the near future. The initiative aims for three main goals: fostering formal employment, reducing litigation, and modernizing labor relations to adapt to new forms of work.
The proposal suggests a comprehensive reform of the Labor Contract Law and complementary regulations. Key changes include the unification of mandatory registration in the new revenue agency ARCA, where the lack of registration will be considered a presumption in favor of the worker. Employers will gain the right to modify work methods and modalities as long as they do not alter essential elements or cause harm.
The bill also proposes the elimination of fines for unregistered employment and the introduction of digital formats for work certificates. The compensation system will see the calculation base redefined and a cap set on indemnities, which cannot exceed three times the average salary of the collective agreement.
For workers who become permanently disabled, employers will be required to assign them compatible tasks. If this is not possible, the contract is terminated with a reduced compensation. A special regime for digital delivery platforms will be established, outlining the rights and obligations of independent couriers.
Additionally, the project includes the creation of a severance fund, a reduction in employer contributions for those who meet their obligations to the Labor Assistance Funds, and special conditions for the regularization of informal labor relationships, including the waiver of fines and interest.
