Politics Economy Country 2025-10-30T00:40:39+00:00

Labor Reform in Argentina: Flexibility, Digitalization, and New Challenges

Argentina's proposed labor reform aims to modernize company-worker relations, introduce individual agreements, and digital control systems. An analysis of the initiative's goals, potential challenges, and impact on the labor market.


Labor Reform in Argentina: Flexibility, Digitalization, and New Challenges

During plant shutdowns, maintenance, or seasonal projects, the projected labor reform makes it possible to relocate personnel, redistribute tasks, and maintain service continuity without friction or extra costs. If approved, the initiative would introduce profound reforms that would directly impact how companies organize their resources, outsource services, and document compliance. The challenge is twofold for companies that operate with contractors: to leverage flexibility without losing control. In this equation, technology and document traceability become the new pillars of sustainable compliance. For contractor companies and their clients, this new scheme represents an unprecedented capacity for reorganization and operational planning. In Mexico, for example, the 2021 reform prohibited the outsourcing of personnel, except for specialized services unrelated to the company's main activities, which must be registered. The change would not only affect Human Resources departments but also legal, financial, and compliance areas, which will have to review their procedures to integrate into a model of continuous digital compliance.

Individual Agreements One of the pillars of the project is the possibility of approved individual agreements between employer and worker, which will allow adjusting hiring modalities, schedules, tasks, or categories without depending on generic collective agreements. This opens the door to greater polyfunctionality within companies, where workers can take on different roles or functions according to operational demand, maintaining the legal framework and traceability of the agreement. "The possibility of celebrating individual agreements introduces a modern logic into labor relations: it allows the parties to flexibly and documentably redefine conditions, roles, and functions. In combination with the fragmentation of vacations, this tool favors polyfunctionality and gives contractors an agility that was previously only achieved with temporary replacements or temporary contracts," explains Facundo Lucero, a lawyer and auditor at Laborem. The Law Project for the Promotion of Investment and Employment proposes a comprehensive redesign of the Argentine labor system. Its objective is to modernize the relationship between companies, contractors, and workers, and to adapt legislation to the reality of an increasingly digital, flexible, and global market. If the main intention is to formalize eight million workers who are part of the informal economy, there have already been unsuccessful experiences. According to data from a study by the Ministry of Labor related to the evolution of unregistered employment, excluding social plan beneficiaries, the rate was 38% in the period 1997 to 2002, and then despite the measures applied in 2008, the rate remained at a similar percentage of 36%. These statistics prove that implementing economic measures in 2001 and 2008, such as reducing employer contributions, did not, on their own, ensure an increase in the hiring of workers, nor did they reduce the levels of unregistered employees in the economy.

The New Argentina "The new Argentina's labor reform is not measured in hours or papers, but in traceability. The real leap is not in deregulation, but in the ability of companies to professionalize their management and turn compliance into a competitive advantage," concludes Francisco Costa, a lawyer and founder of Laborem. The norm also modernizes the control of absenteeism through digital medical licenses, which can be electronically audited, and the reintroduction of non-remunerative benefits—such as connectivity, childcare, or food—manageable through digital platforms. These changes will require immediate adjustments in the document matrices and electronic personnel file systems of contractors, to be able to correctly register and audit each benefit, license, or certification. The reform, however, faces three limits: the underfunding of the ailing pension system; the resistance of unions in defense of labor rights; and labor conflicts that overflow the labor justice system.

Latest news

See all news