The President Javier Milei signed the project this week Labor reformwhich aims to transform key aspects of the relationship between employers and employees with the aim of giving This increases the flexibility of the system and reduces the number of legal disputes.
A report from LN+ announced details of the initiative moving forward Holidays, working hours, layoffs, work in private homes and essential servicesin addition to the inclusion of new instruments such as Hour bank and the Severance Fund.
One of the most important points is the possibility of Replace the traditional compensation system through alternative mechanisms financed by monthly contributions from the employertogether with changes in the organization of the annual rest period and in the way of resolving collective conflicts.
The project also presents Adjustments to collective agreements and salary reductionswhich would require the express consent of the employee.
This is what the project determines Each fraction of the vacation must not be less than seven consecutive days.. In addition, a new guarantee is included: The employer must allow the employee to take vacation in the summer at least every three years.
The reform enables the implementation of one Bank of volunteer hourswhich must be agreed between the employee and the employer (or by agreement). The system will allow it compensate for long days with shorter onestaking into account the prescribed minimum breaks:
The project Approves the replacement of the uniform remuneration model for the creation of sectoral provident funds or insurance companiesfinanced with monthly employer contributions.
The compensation calculation includes:
In this sense, Extraordinary payments or unusual tips are excluded.
In the event of termination without giving reasons, the following generally applies:
If the court declares the dismissal to be invalid, the employee can do so Choose between returning to his position or receiving appropriate compensation.
The initiative introduces specific changes for this sector:
The project sets minimum dimensions for coercive measures:
This is the principle that once a collective agreement expires, its terms automatically remain in force. The project proposes this does not apply to ongoing and variable salary componentsB. Bonuses, prizes or incentives.
It is a system that An agreement may be reached between the employee and the employer (or with the union) to compensate for overtime. Instead of you being charged extra, these hours are stored in a “bank account.”
This will be regulated by the reform Any withholding of salary requires the express consent of the employee.
You can do it Labor Assistance Fund (FAL)consisting of compulsory contributions from the employer. Its purpose is Cover obligations related to redundancysuch as advance notice and compensation.
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