The Government is preparing the labor reform law to be presented to the Congress and already has a new draft. It regulates essential aspects such as salary, bonus, working hours, vacations, licenses, types of contracts, probation periods, and contract termination procedures. The compensation system is one of the most controversial points.
In this context, after arduous negotiations (still underway) with opposition allies and some governors, the President of the Nation signed this Friday the decree calling for extraordinary sessions in the National Congress. The Chief of Staff, Manuel Adorni, confirmed this: "Today the President of the Nation will sign the decree calling the National Congress to Extraordinary Sessions from December 10 to 30".
The project has 182 articles, and according to President Javier Milei, there is an "absolute consensus" with the governors to move forward with the initiative. The project contemplates the modification of the Labor Contract Law, the legal framework that determines the validity, rights, and obligations of the relationship between the worker and the employee.
In this case, it proposes to redefine the calculation base: it sets caps equivalent to three average salaries of the applicable sectoral agreement, in addition to a floor of 67% of the worker's salary.
The most innovative part is the replacement of the compensation with a Labor Severance Fund. This mechanism integrates mandatory monthly contributions that the employer must make, calculated on the worker's salary. The fund would act as a "piggy bank" of savings that the worker would receive upon termination of the employment relationship, regardless of the cause, and eliminates the obligation to pay the traditional compensation at the time of dismissal.
This article was first published in Mendoza Today. Source: Mendoza Today.
