Argentine News Agency has obtained the full text of the draft Labor Modernization Law project. This is an extensive body of regulations of 182 articles that seeks to substantially modify the Labor Regime (Law No. 20.744) and carry out profound tax transformations. According to the Argentine News Agency, the initiative ranges from the scope of application of labor law to a new tax scheme and the repeal of historical regulations. Key Amendments to the Labor Contract Law (LCT). The project seeks to redefine the labor relationship in several central points: Exclusions: It is established that the provisions of the LCT will not be applicable to: National, provincial, or municipal public administration employees, unless an express act includes them. Work, service, and agency contracts, and all regulated in the Civil and Commercial Code of the Nation. Independent workers and their collaborators. Independent workers from digital platforms. Principle of the Most Favorable Rule: Article 9° of the LCT is replaced, establishing that the most favorable rule will prevail for the worker, but the grouping criterion will be "by institutions" (i.e., the set of rules governing each institution of labor law), and not by the most favorable rule in abstract. Court Costs: In case of "inexcusable overclaiming" (overestimation of claimed credits), costs must be jointly borne by the party and the acting professional. Fiscal and Investment Aspects. The project also includes a Title dedicated to the Incentive Regime for Micro, Small, and Medium-sized Enterprises (MiPyMES) for Productive Investment (RIMI) and tax changes: Update of Losses: Losses generated from January 1, 2025, will be updated by the General Consumer Price Index (IPC), instead of the current regulation. Reduction of Internal Taxes: The internal tax for insurance, mobile and satellite telephone services, luxury items, and automobiles, vessels, and aircraft is left without effect. Exemptions in Income Tax: Income derived from the rental of real estate for residential purposes is exempt. Among other norms, the following are eliminated: Key articles of the Labor Contract Law (LCT) No. 20.744, such as articles 27, 28, 54, 61, 113, 174, 175, 176, 214, 215, 216, and 275. Article 6 of Law No. 11.544 (Legal Working Day). The laws on the Statute of the Professional Journalist (No. 12.908) and the Statute of the Commercial Traveler (No. 14.546). Additionally, from 2026, the result derived from the sale of real estate is exempt. Incentives for the Agribusiness: Owners of pasture or feedlot establishments may opt for specific methods to value their livestock holdings. Repeal of Historical Norms. Title XXV of the project is the most extensive in terms of repeals.
