The debate on labor modernization in Argentina continues to gain space as the government finalizes the details of a reform project that, according to labor lawyers, Julian DiegoIt seeks to update the current regulatory framework to adapt it to the new requirements of the market and workers.
De Diego indicated, in radio statements, that the initiative will include: About 90 itemswith amendments ranging from employment contracts to the exercise of the right to strike. He explained that the goal is Updating legislation that is more than fifty years old.
“The articles range from the contract to the right to strike. The concept of dynamic salary has been incorporated, and the working day system has been modified to facilitate the bank of working hours. Our labor contract law is backward, and this reform will give it a breath of fresh air,” the specialist said.
The consultant who participated in the consultations with the team in charge of writing indicated that the proposal seeks Generate predictability and confidence In the workplace. “Labor reform is consistent with what Argentina has to offer for the future. We must establish clear rules of the game,” he expressed.
Project under reservation
De Diego indicated that the artistic group preparing the text is working with her Strict confidentiality There will be no official publication until the contents are fully determined. In this sense, he pointed out that the proposal aims to Providing the contracting system with more flexibilityRemoving bureaucratic obstacles and adapting them to technological progress.
“The resources being combined will allow investors to obtain tools similar to those in developed countries. The idea is to facilitate more dynamic employment, linked to new technologies and artificial intelligence, which today drive labor reforms around the world,” he stated.
Criticisms and clarifications
Faced with questions warning of the possibility of losing rights or canceling compensation, de Diego asserted: “This is nonsense. Critics of the government do not have good information. The drafts respect all the basic rights of the worker and not only preserve legal compensation, but improve it.”
At this point, the expert pointed out that the criteria set by the Supreme Court in to fail Vizzotti (2004) who declared unconstitutional the maximum compensation for dismissal without cause provided for in the Employment Contracts Act. According to this precedent, compensation cannot be reduced by more than 33% in relation to the worker’s real salary, so the amount to be paid must be at least 67% of what it would have been without the cap.
Bank of working day and working hour
Regarding the workday, de Diego explained that eight hours a day (up to nine) and forty-eight hours a week are maintained, under an average system that requires union approval.
He explained: “You can work up to twelve hours a day as long as you do not exceed the weekly average or eight hours a day. For example, a shopping mall employee may have longer days on weekends and days off at the beginning of the week.”
The lawyer added that the work cycle can be measured in three-week intervals, allowing greater flexibility depending on the needs of each activity.
About him hour bankHe pointed out that the system has been in place since 1991 and works in sectors such as mining, where workers work long shifts and then rest for several consecutive days. He explained: “There are workers who work fourteen-twelve hours a day and then get ten days off with their families.”
Termination Fund
He was asked about the eventual replacement of traditional compensation with A Termination insuranceDe Diego explained that the mechanism has already been thought of in the Basic Law and that the government seeks to implement it through a fund managed by banking entities or insurance systems.
But he explained that its implementation requires agreements between unions and business chambers, and so far it has not flourished due to… The additional cost that may be incurred by companies. He added, “To finance the endowment fund, the monthly contribution must be between 2 and 10 percent, depending on the activity.”
De Diego also emphasized that labor reform must be accompanied by Pension and tax adjustmentsbecause “Argentina has one of the highest labor costs in the world.”
Next steps
The specialist expected that the official projects would be known After December 10thWhen new legislators take office. Until then, exchanges will continue with governors, who have already received preliminary information about reform points affecting their districts.
This initiative, which the government will present to Congress, is part of a broader process A comprehensive review of the Argentine labor systemWith the aim of updating standards, encouraging investments, and improving competitiveness without changing the basic rights of workers.
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