Labor reform in Argentina

Labor reform in Argentina is a crucial necessity to overcome years of stagnation.

The great outdatedness of labor regulations, of many collective bargaining agreements entered into the 19th century and still in force due to the unreasonable principle of ultra activity, of sanctioning rules that have failed, and also the shortcomings of the few new laws that sought to modernize the dynamics of labor relations (such as, for example, the telework law, hastily passed in the middle of the pandemic and without adequate consultation and evaluation), among many other reasons, have been one of the obstacles to Argentina’s development.

Labor regulations in Argentina are not in sync with today’s information society and modern information and telecommunication technologies, nor with the flexible working arrangements demanded by employees to provide services remotely and from many different locations, including abroad.

The so-called Ley de Bases y Puntos de Partida para la Libertad de los Argentinos No. 27742 (hereinafter the Ley Bases), published in the National Official Gazette on 8 July 2024 and effective as of the day following its publication, except in the chapters or titles where it states otherwise, is only the first milestone of a labor reform in Argentina that should be much more comprehensive.

Sharing knowledge on labor reform in Argentina

In a series of articles that we will publish over the next few days, we will briefly develop the main contents that companies cannot ignore about the Ley Bases on labor matters, which deal with:

1) The regularization of labor relations;

2) The repeal of fines;

3) Relationships excluded from the Employment Contract Law, especially the new regulation of “self-employed workers”;

4) The non-existence of presumptions of an employment relationship;

5) The outsourcing of services;

6) The extension of the trial period;

7) Maternity leave;

8) Dismissal with just cause;

9) The aggravation of severance compensation due to discrimination;

(10) Severance payments through termination funds;

11) New provisions in the agricultural labor regime.

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Mario E. Castro Sammartino

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