The key points of labor reform that concern workers

The President Javier Milei returned from his trip to Oslo and signed the draft Labor reformthat was sent to the National Congress, although the discussion in the committee is expected to begin next week, although the senator and head of the LLA bloc, Patricia Bullrichtry to shorten the times.

Although his time in the House of Representatives is already ruled out for the small remainder of 2025, Bullrich is aiming for half-approval from the upper house with explicit treatment in the coming days. Also in official announcement from the Presidency, with the text that accompanied the project, the President He called on Congress to “act quickly and responsibly” on the proposal.

The labor reform that comes or goes

The presentation of the project is already meeting opposition from the trade unions, as is the case with the CGT, whose leadership has already opposed it because it “takes away the rights of workers”. Even today, the CGT board meets at lunchtime with the goal seek a common position to transfer the Central Obrera’s rejection to labor reform.

One of the issues that most concerns employees is compensation. Regarding the end-of-work fund, the current Secretary General of the CGT, Cristián Jerónimo, commentedremarked: “There is not a single activity that has implemented it. The problem in the world of work is not remuneration,” and he stressed, “the problem is that the economy does not work.”“We strongly reject it.. Compensation is not a reward that the employer gives to the employee, but rather the years of effort of the employees, the productive power of the company. Nobody gives them anything. We don’t agree on anything“.

The basic points of labor reform

The initiative proposes a profound redesign of the employment system: it redefines the scope of the Labor Contract Law, changes the remuneration rules, enables new recruitment systems, limits the ultra-activity of collective agreements and creates a mandatory fund for the payment of layoffs. The government reiterates that it aims for “more predictability and less litigation”; Trade unions warn of a setback on the right.

1. Scope of TBI: Who is in and who is out

The project redefines that Scope of the Employment Contract Act (LCT). are excluded Freelancers and their employees and also those Technology platform service providerwho now have a specific regime.

This is a crucial step: in practice, this means that thousands of workers would no longer be considered dependent workers for the purposes of the LCTema expects strong controversy with trade union organizations and the platform economy

In addition, the principle of “norm more favorable to the employee” is limited only to legal and not to factual issues, and the concept of “social justice” as an interpretive parameter disappears.

2. Unified registration and reduction of administrative burden

The project creates a system of unified labor registration in ARCAthe new debt collection agency, which is subordinate to the Ministry of Economic Affairs.

From this point onwards, no province or municipality may require additional requirements. The board presents it as a key step towards simplifying processes and reducing operating costs for companies

3. New compensation and compensation structure

The government is focusing on Reduce litigation derived from the compensation calculation. For that:

* Defines more precisely which positions form the calculation basis.

* Expands the concept of free social benefits (canteen, medical reimbursement, daycare, temporary accommodation, work telephones) that do not pay contributions or contributions.

* Specifies that tips are never considered wages.

* Enables the Payment of salaries in foreign currency.

* They enable “dynamic” variable compensation based on performance or productivity, without generating rights acquired through use or custom.

Regarding remuneration, the reform confirms the traditional system – one salary per year – but provides precise definitions of “normal, regular and monthly remuneration”. And it makes something central clear: No claims for damages can be made outside the employment regime.with the exception of proven autonomic damage. This means that an attempt is being made to complete the civil dismissal process

4. Work Assistance Funds: a new system to finance redundancies

One of the structural changes is the creation of the Labor Assistance Fund (FAL).
Employers must provide this 3% on the same basis as the employer contributions and form a “separate, non-seizable and independent asset”. In return, they access a 3 points deduction in their contributions to SIPA.

The ruling party presents it as a modern mechanism that gives predictability to the employer and guarantees pay to the employee. For the unions, it is a hidden replacement for the compensation system. The text makes it clear that traditional compensation is not disappearing: the funds now only fulfill a financial function.

5. Changes to working hours, breaks and absences

The reform enables:

A) Hour bank be agreed individually or collectively.

B) partial vacation (at least 7 days) and possibility of taking them outside the legal period.

C) Better control over sick leave: certificates with diagnosis, treatment and digital signature.

An innovation is also being introduced: If the employee’s performance is limited due to illness or accident, the employer can do this Adjust category, hours and compensation according to the remaining suitability.

6. Collective bargaining: end to ultra-activity and turn to the company

The project proposes a profound reconfiguration of the collective bargaining system:

* Ultra activity is limited: Once an agreement has expired, only the normative clauses remain in effect until a new one is signed. Obligation clauses expire.

* The labor authority can Suspend clauses if they cause “serious economic distortions”.

* The priority logic is reversed: Enterprise agreements or agreements with a smaller scope take precedence over agreements with a larger scope.even if they are sooner or later.

This represents a shift towards decentralized bargaining, aligned with flexible models found in other countries, but is a direct blow to the centralized bargaining power of union federations.

7. Trade union federations: restrictions on gatherings and protection

The law states:

* Meetings with the permission of the employer and without payment of salary for the time of participation.

* The Business blockade.

* They are reduced to 10 hours per month the hourly credits of the delegates.

* The creation of Company unions.

The unions are already expecting resistance: they interpret these measures as a direct cut into institutional power.

8. New regulation for platform workers

A special category is regulated for delivery and mobility services under technological platforms. The text guarantees their “independence”, meaning that they are not considered to be workers in a dependent relationship, one of the most controversial points due to the increase in informality in this sector in recent years.