The government of Javier Milei provided one Work Modernization Act and will try to get half approval in the Senate before the end of the year. The proposed law introduces profound changes in industrial relationsmakes the contract terms more flexible and significantly changes the system Compensation.
The reform represents one reduction in the formula for calculating the final amount received by an employee at the time of his dismissal Detachment. The project excludes of the count the bonus, vacation, prizes and every other concept This does not include the normal salary. The reference base undergoes another relevant change. The highest salary received is no longer taken into account, but a Average in cases where additional variable elements are present. The regulations allow compensation to be paid in installments and eliminate maximum limits on the amounts.
The aim of the project is to promote Security in work conflicts. Sets an update criteria tied to the Consumer Price Index (IPC) with an additional 3% annually. The law expressly prohibits it Allow interest to accrue on interesta practice known as Anatokism. This calculation is currently not standardized and depends on the criteria of the relevant labor judge.
The government is introducing a new financial instrument after the failed attempt Work Termination Fund in the Basic Law. The initiative provides for the creation of the Work Assistance Fund (FAL), which is financed with 3% of the employers’ compulsory contribution and the state no longer receives this amount. The management of the resources is the responsibility of the National Securities Commission under the protection of the ministries of economy and human capital. Critical industries compare this system to a kind of AFJP of 2026.
The proposed legislation makes forms of compensation more flexible allowed. Employers can pay salaries Pesos or in foreign currency, Food, species or shelter.
The initiative involves “dynamic” negotiations and allows salary increases to be tied to company productivity. The rhetorical strategy is reminiscent of the measures promoted by Domingo Cavallo during the Carlos Menem government, when increases were limited by decree according to similar criteria. This modification could Prerequisite for future joint discussions.
The project allows the creation of a Hour bank through a collective agreement on the distribution of work. The wording of the law provides for the possibility extend the daily working day from 8 to 12 hours. The number of part-time contracts will be introduced where the workload is less than the statutory working day.
The regime of Vacation It also undergoes modifications. It is allowed Distribution of rest days. The employer has the power to set the vacation dates, with the only obligation to inform the employee 45 days in advance.
The reform expands the list of activities considered essential. It is essential that these sectors ensure operational functioning between them 50 and 75% in union conflicts. Javier Milei had previously tried to advance this measure through a decree, but the judiciary stopped this decision after a CGT protection. Labor lawyers warn of what is possible Unconstitutionality the norm to influence the exercise of the Right to strike and violated Article 14bis of the National Constitution.
The government is trying to eliminate the concept Ultraactivity of collective agreements. The aim is for company agreements to take precedence over the agreements of the main trade union in the sector. Agreements with a larger scope may not modify or supplement the content of agreements with a smaller scope.
The initiative withdraws it Mandatory for companies act as agents Withholding of union dues. Under current law, this withholding is required if the employee wishes to make the contribution. The new text mentions the need for one express consent and an agreement between the parties without specifying whether it relates to the employee with his employer or to the company with the union.
It’s intentional abolish the solidarity contribution. This contribution is made by non-union employees through the union management and is agreed in collective agreements with the approval of the Ministry of Labor. This modification directly affects the collection system of trade union organizations.
The project defines a new job category for him scope. Creates the figure of an independent delivery person and allows freedom of contract design. The initiative notes that this link is not an employment relationship, but rather an employment relationship independent service contract. This classification gives legal legitimacy to a form of informal work.
This content was created by a LA NACION team with the support of AI from a Article signed by Nicolás Balinotti.
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