President Javier Milei\u2019s controversial labour reform, which aims to loosen Argentina\u2019s current employment framework, is now law following congressional approval.<\/p>\n
The so-called \u2018Labour Modernisation Law\u2019 is presented by the government as a tool to promote formal employment, ease new hiring and reduce litigation.\u00a0<\/p>\n
Trade unions, however, describe it as \u201cregressive\u201d and \u201cunconstitutional.\u201d They have protested against it in the streets and are preparing to challenge it in the courts.<\/p>\n
Below are some key aspects of the reform promoted by Milei and his La Libertad Avanza party.<\/p>\n
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Working hours and holidays<\/strong><\/h3>\nMilei\u2019s Labour Modernisation Law amends Employment Contract Law and other regulatory regimes.<\/p>\n
It allows the working day to be extended from eight to up to 12 hours without overtime pay, provided the additional hours are compensated with time off agreed through a \u201cbank of hours\u201d system or with compensatory leave.<\/p>\n
Annual leave may now be split into periods of seven days, instead of the previous minimum of 14 consecutive days.<\/p>\n
Although the bill stipulates that these changes must be agreed by mutual consent, trade unions argue that the imbalance of power between employer and employee will operate to the detriment of workers.<\/p>\n
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Severance pay<\/strong><\/h3>\nThe law reduces severance payments in cases of dismissal and allows employers to finance them through a fund supported by monthly contributions deducted from pension payments.<\/p>\n
It also sets out explicit criteria for updating compensation amounts in labour lawsuits \u2013 previously left to the discretion of individual judges \u2013 and permits employers to pay court-ordered awards in up to 12 instalments.<\/p>\n
Milei\u2019s government maintains that the reform will \u201cstandardise criteria,\u201d curb labour litigation and provide relief to small and medium-sized enterprises.<\/p>\n
Mat\u00edas Cremonte, president of the Asociaci\u00f3n Latinoamericana de Abogados y Abogadas Laboralistas, said that the changes breach \u201cthe State\u2019s duty to protect employment\u201d by removing the \u201cdeterrent effect\u201d that severance pay has on dismissals without cause.<\/p>\n
Opposition figures have warned that the measure could result in the underfunding of pension schemes.<\/p>\n
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Wages and collective-bargaining agreements<\/strong><\/h3>\nUnder the new law, employers may pay wages in foreign currency or partially in kind \u2013 that is, through food, accommodation or other goods and services.<\/p>\n
It also allows contracts to be renegotiated to adjust pay according to productivity metrics, target fulfilment or performance.<\/p>\n
Company-level or regional collective agreements will take precedence over sector-wide agreements.<\/p>\n
In addition, certain professional statutes are repealed \u2013 including rules governing journalists and the rules around firing them.<\/p>\n
The Foro de Periodismo Argentino (FOPEA) press association and unions rejected the repeal, describing it as \u201ca serious setback for institutional quality and the independence of Argentine journalism.\u201d<\/p>\n
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Right to strike<\/strong><\/h3>\nThe law introduces minimum service requirements during strikes of 75 percent in sectors such as telecommunications, commercial aviation and education, with 50 percent across a broad range of industries including pharmaceuticals, steel, food production, construction, mining and e-commerce.<\/p>\n
Staff assemblies and delegates\u2019 congresses must also receive authorisation from the employer, and workers will not be paid for the time spent attending them.<\/p>\n
For Cremonte, \u201cthe restriction of the right to strike is patently contrary to all regulations of the International Labour Organisation (ILO) and the American Convention on Human Rights.\u201d<\/p>\n
The lawyer, who advises several local unions, explained that constitutional review in Argentina is \u201cdiffuse,\u201d meaning \u201cit may take years before case law consolidates around a determination of unconstitutionality.\u201d<\/p>\n
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\u00a0<\/p>\n\nrelated news<\/h6>\n<\/p>\n<\/section>\n
by Tom\u00e1s Viola, AFP<\/p>\n
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The law reduces severance payments in cases of dismissal and allows employers to finance them through a fund supported by monthly contributions deducted from pension payments.<\/p>\n
It also sets out explicit criteria for updating compensation amounts in labour lawsuits \u2013 previously left to the discretion of individual judges \u2013 and permits employers to pay court-ordered awards in up to 12 instalments.<\/p>\n
Milei\u2019s government maintains that the reform will \u201cstandardise criteria,\u201d curb labour litigation and provide relief to small and medium-sized enterprises.<\/p>\n
Mat\u00edas Cremonte, president of the Asociaci\u00f3n Latinoamericana de Abogados y Abogadas Laboralistas, said that the changes breach \u201cthe State\u2019s duty to protect employment\u201d by removing the \u201cdeterrent effect\u201d that severance pay has on dismissals without cause.<\/p>\n
Opposition figures have warned that the measure could result in the underfunding of pension schemes.<\/p>\n
\u00a0<\/p>\n
Wages and collective-bargaining agreements<\/strong><\/h3>\nUnder the new law, employers may pay wages in foreign currency or partially in kind \u2013 that is, through food, accommodation or other goods and services.<\/p>\n
It also allows contracts to be renegotiated to adjust pay according to productivity metrics, target fulfilment or performance.<\/p>\n
Company-level or regional collective agreements will take precedence over sector-wide agreements.<\/p>\n
In addition, certain professional statutes are repealed \u2013 including rules governing journalists and the rules around firing them.<\/p>\n
The Foro de Periodismo Argentino (FOPEA) press association and unions rejected the repeal, describing it as \u201ca serious setback for institutional quality and the independence of Argentine journalism.\u201d<\/p>\n
\u00a0<\/p>\n
Right to strike<\/strong><\/h3>\nThe law introduces minimum service requirements during strikes of 75 percent in sectors such as telecommunications, commercial aviation and education, with 50 percent across a broad range of industries including pharmaceuticals, steel, food production, construction, mining and e-commerce.<\/p>\n
Staff assemblies and delegates\u2019 congresses must also receive authorisation from the employer, and workers will not be paid for the time spent attending them.<\/p>\n
For Cremonte, \u201cthe restriction of the right to strike is patently contrary to all regulations of the International Labour Organisation (ILO) and the American Convention on Human Rights.\u201d<\/p>\n
The lawyer, who advises several local unions, explained that constitutional review in Argentina is \u201cdiffuse,\u201d meaning \u201cit may take years before case law consolidates around a determination of unconstitutionality.\u201d<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n\nrelated news<\/h6>\n<\/p>\n<\/section>\n
by Tom\u00e1s Viola, AFP<\/p>\n
\t\t\t\t\t\t\t\t<\/p>\n
The law introduces minimum service requirements during strikes of 75 percent in sectors such as telecommunications, commercial aviation and education, with 50 percent across a broad range of industries including pharmaceuticals, steel, food production, construction, mining and e-commerce.<\/p>\n
Staff assemblies and delegates\u2019 congresses must also receive authorisation from the employer, and workers will not be paid for the time spent attending them.<\/p>\n
For Cremonte, \u201cthe restriction of the right to strike is patently contrary to all regulations of the International Labour Organisation (ILO) and the American Convention on Human Rights.\u201d<\/p>\n
The lawyer, who advises several local unions, explained that constitutional review in Argentina is \u201cdiffuse,\u201d meaning \u201cit may take years before case law consolidates around a determination of unconstitutionality.\u201d<\/p>\n
\u00a0<\/p>\n
\u00a0<\/p>\n by Tom\u00e1s Viola, AFP<\/p>\n \t\t\t\t\t\t\t\t<\/p>\nrelated news<\/h6>\n<\/p>\n<\/section>\n