After weeks of negotiations, Javier Milei’s government submitted the final draft to the Senate Labor reform. The initiative includes changes in the areas of leave, compensation, layoffs, remuneration and the application of special arrangements. The text introduces a regulatory modernization program that would impact public and private activities, with a comprehensive approach to individual rights and work obligations.
The project was developed as part of the May Councilwith the participation of national officials, legislators, governors, business representatives and union delegates. The unions present largely expressed their opposition to the guidelines proposed by the executive branch. The text organizes content related to rest periods, hour bank, billing, legal proceedings and the operation of collective agreements.
Among the general axes, the project maintains the traditional regulations of the Employment contract law and introduces additional work organization mechanisms. The formal sections summarize criteria on contractual arrangements, digital records, the formalization of the connection and the scope of collective bargaining. The proposal also includes regulations for certain activities, including private homes, agricultural work and delivery platforms.
The changes include operational aspects in Licenses, breaks, compensation calculation, Digitization of documentation and procedures against termination of the link. At the same time, it includes guidelines for critical sectors with the regulation of minimum services, new criteria for ultra-activity and an incentive system to promote work formalization.
Vacation and organization of recreation
The project retains the right to paid annual leave in accordance with applicable standards in the EU Employment contract law. It offers employees and employers the opportunity to individually or jointly agree on an extension of vacation time, always within the legal minimum requirements. The allocation of the period must be made between October 1st and April 30th with thirty days’ written notice.
The initiative stipulates that the Vacation distribution You must keep at least seven days per section. This criterion aims to ensure continuous periods, with the obligation to have the rest period take place at least every three years during the summer season. Leave outside the statutory period may only be granted for justified reasons and with the consent of the enforcement authority.
The defined boundaries They try to organize the internal organization of each establishment and enable sectoral agreements when adjustments to rest periods are necessary. Notifications, conditions and deadlines must be documented in the relevant work documents. The regulations also expand control mechanisms to verify compliance.
The initiative leaves open the possibility that collective agreements provide for this specific modalities of vacation distribution for activities with pronounced seasonality. In all cases, the minimum deadlines and reporting requirements are mandatory conditions and cannot be shortened by agreement.
Hour bank and organization of the day
The project allows employees and employers to reach agreement a time bank system. The mechanism must be in writing and is voluntary. The agreement must contain verifiable controls that allow for accounting of hours worked and hours available for compensation. Collective agreements can set their own parameters for calculating the average working day.
The minimum mandatory breaks remain twelve hours a day and thirty-five hours a week. With the hour bank, long days can be compensated for by shorter periods within the current legal weekly limit. The documentation created by time recording must be stored in digital or paper form with legal equivalence.
The proposal stipulates that any agreement can be made additional control mechanisms to avoid overlapping or excessive accumulation of hours. The aim of the system is to organize the areas with the highest demand in the productive sectors through a different distribution of working hours. The agreements must be registered with the relevant administrative authority.
The parameters of Registration, control and compensation They are supervised by labor organizations that may require additional documentation in conflict situations. Employers must enable consultation mechanisms so that employees can access details of hours accumulated.
Compensations, layoffs and industry funds
The project considers the possibility of replacing the traditional compensation system with sectoral severance funds or insurance. These instruments are financed through monthly contributions from employers. The calculation takes place on sBasic salaryusual amounts and seniority, excluding extraordinary payments or unusual benefits.
The normal and customary remuneration The amount is the amount that was accumulated during at least six months of the last year. The calculation basis is limited to three times the average salary of the agreement in force, with the lower limit being 67% of this reference salary. The initiative also sets out criteria for payments to family members in the event of the employee’s death, as well as conditions for payment in installments.
A distinction is made when it comes to terminations Terminations with and without cause. In the case of terminations without giving reasons, the compensation is one month’s salary for each year of work or the commenced period of more than three months, based on the best, normal and usual monthly salary of the last year. The procedures for justifying terminations with reasons and the steps for notifying authorities are described in detail.
In cases where the judiciary declares inadmissible a dismissalthe employee can choose whether to return to work or receive compensation. If the option of reinstatement is available, the company must regulate the employment relationship and pay the lost wages. In addition, minimum performance criteria of 75% in essential activities and 50% in strategic areas such as health, energy, transport, education, logistics, banking and digital commerce are set.
Remuneration and digital documentation
The project includes regulations on salary composition, including: fixed, variable amounts and social benefits. Work documents – receipts, forms and certificates – must be digitalized and have the same validity as paper documents. Digital medical certificates are also accepted to justify absences due to illness.
Salary receipts must contain the information paid and non-paid conceptsand contributions paid. The labor authority may request additional data if it considers this necessary to check the transparency of the settlements. The regulations clarify which terms constitute the main remuneration in order to avoid legal conflicts.
The centralized system for medical certificates This allows you to check diagnoses and validate absences due to illness that was not your fault or due to work-related illness. A final medical discharge is required for the employee’s reinstatement, and in the event of partial reinstatement, compensation will be proportional. The company must report longer absences before imposing sanctions.
The regulations do not oblige the employer to assign tasks other than the usual ones until the final dismissal. The documentation Data generated by medical processes must be integrated into the corresponding digital file.
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