The government presented it this Tuesday Final report of the May Council. Among the most important points raised is the labor reform project that will be presented to Congress in the next few hours.
The Chief of Staff Manuel Adorni was responsible for the presentation of the report and, although he did not give too many details, gave some indications of what the so-called labor reform will entail, one of the points that generates the greatest interest among both entrepreneurs and workers.
“There were six plenary sessions, Technical tables were created, especially in the most complex areas such as labor and education. “We have always worked with written proposals and today we present to society a report on the points discussed, an appendix with the draft laws and another with the documents provided by the city councilors themselves,” Adorni summarized at the beginning of his speech.
Regarding the modernization of the world of work, Adorni pointed out that it will include: comprehensive updating of standards, Inclusion of self-employed people and platforms, changes to agricultural work and repeal of the telework law. There will also be changes to union dues and joint negotiations
Aside from that, He revealed that many things about the project were contained in the draft circulated days ago.
Labor reform: the main points that the government has confirmed and that it will include in the project
He The Labor Modernization Law project introduces a structural reform of the regulatory framework that governs labor relations in Argentina and amends fundamental laws such as Employment contract law (No. 20,744), the Law of Trade Union Associations (No. 23,551) and the Collective Bargaining Act (No. 14.250), among other things.
The central axes of the reform are the flexibility of the contractual modalities and the new determination of the assessment basis for termination compensationthe creation of an alternative system for termination of employment and the limitation of the power of trade union federations, particularly with regard to direct action.
Key points confirmed by the government include the following:
Amendments to the Collective Bargaining Act (Law No. 14.250)
Collective bargaining: The ultraactivity of collective agreements is limited only expired on their normative clauses (working conditions), Repeal of mandatory clauses unless the parties have agreed to this. The predominance of smaller scale (corporate) arrangements over larger scale arrangements has been proven. This can, among other things, influence joint negotiations.
Overall, the law proposes a paradigm shift towards an industrial relations model with greater flexibility for the employer, a redesign of joint and several liability in subcontracting and greater regulation of trade union activity.
Ultraactivity (Article 111): An expired collective agreement “only retains the regulations on working conditions (normative clauses) in force.” The remaining (mandatory) clauses only remain in force if the parties agree.
Ranking (Art. 115): It is stated that “an agreement of a smaller scope shall, within its scope, prevail over another agreement of a larger scope, whether sooner or later.” This means that company agreements have priority over activity agreements.
Digital platform employees
A is created specific regulation for delivery drivers and couriers who use platforms and defines them as “platform-independent delivery drivers”. Your relationship with the Platform is not governed by the LCT, but rather by this regulation and, moreover, by the national civil and commercial code.
Rights and obligations:
- You have the freedom to connect, accept/reject orders and choose routes.
- The platforms must offer personal accident insurance, but the reimbursement of costs “will be the subject of an agreement between the parties,” without any reference to an employment relationship.
- The delivery person must register and pay contributions in the relevant tax system (e.g. Monotributo) in order to have access to social benefits and health insurance.
Changes in the relationship with unions and union dues
Assemblies and congresses (Article 117): Gatherings in the workplace require the prior approval of the employer. The employee “will not receive any wages during the period of employment.”
YoVery serious violations (Article 118):
- They are classified as very serious violations and are punished with sanctions:
- Impairment of the freedom to work of those who do not comply with a coercive measure.
- Provocation or participation in the blockade or seizure of a facility.
- Cause damage to people or property in the company.
Withholding of union dues (Article 122): Employers can Only if there is “express consent from the employee” and an agreement between the parties will they act as agents for the withholding of union dues. Either party may terminate the contract with 30 days’ notice.
Trade union protection (Article 126): Absolute stability applies (which requires the exclusion of guardianship for release). “only for legally elected union delegates or representatives and that they occupy the positions of holders.” The deputies and congressmen enjoy relative stability protection.
Unfair practices (Article 127): The list of unfair trade union practices expands, including blockades, encouraging compulsory membership, extortionate behavior and failure to comply with mandatory arbitration.
Changes in teleworking
A draft of this project was circulated this Friday and envisages the abolition of several special work arrangements. This also includes the repeal of the Telework Act (Law No. 27,555)
What will it mean for those working with this modality if the project is approved? Who was hired and when? Since the Teleworking Law is in force, they should be able to enforce the rights and obligations set out in this Regulation.
At the same time, those hired after the repeal of Law 27,555 on telework would be subject to the general labor law, the Labor Contract Law (No. 20,744), which is also amended by the aforementioned bill. In this case, the remote working modality would be something to be negotiated between the parties and would not depend on any specific law of this form of remote working.
In addition, the labor reform, if approved, as presented in the document published today, would also amend Article 66 of the Labor Contract Law, which allows the employer to make changes in the form and modality of the provision of work, as long as this does not change essential modalities of the contract or cause material or moral damage to the employee. This is already in force in current labor legislation.
What is in the tax chapter of the labor reform bill?
The Argentine government is preparing one new labor reform project This includes significant changes to the tax system. This initiative, developed after negotiations with economic chambers and official representatives, is intended to encourage private economic activity and facilitate investments. It is expected to be presented to the nation’s Senate in the coming days with the aim of reducing tax pressures in various sectors.
Tax relief for companies and real estate
The distributed design raises a Reducing the income tax paid by companies. From 2026, the tariffs for legal entities will be adjusted: The 30% limit is reduced to 27% and the 35% limit is reduced to 31.5%.. Small and large companies benefit from this measure. The Minister of Economics, Luis Caputo reported that the changes aim to strengthen labor reform and improve the investment climate.
The initiative also proposes an exemption from profits Real estate rental intended for individual accommodation. Anyone who offers a property as living space for third parties no longer has to tax their income. In addition, from January 1, 2026, the sale of real estate by people will be exempt from tax as far as houses, apartments and land are concerned.
Elimination of internal taxes and financial incentives
The project eliminates the tax that was imposed on electronic products such as cell phones. The measure also covers cars, motorcycles, airplanes, boats and luxury goods. Other services supported include insurance, cinema screenings and recorded videograms, mobile telephony and audiovisual communications. Rental apartments that do not involve multiple locations are also exempt from tax.
The exemption of profits is provided for when buying and selling real estate Financial assets: bonds, negotiable bonds, stocks, mutual funds and Cedear. This benefit applies to listed and unlisted assets in markets approved by the National Securities Commission (CNV). The only exception is digital currencies or crypto assets, whose financial income will continue to be taxed.
Specifically, this labor and tax reform project aims to reshape the tax burden in Argentina. It includes cuts in corporate income tax, exemptions for home rentals and real estate sales, and the elimination of internal taxes. The central aim is to stimulate the economy and promote private investment in the country.
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