Decree No. 407/2026, executed on May 29, 2026, and published in the Official Gazette on June 1, 2026, implements various provisions of Labor Modernization Law No. 27,802. The Decree is organized into several annexes. For purposes of clarity, this report addresses exclusively Annex I, which sets forth the implementing regulations for nine provisions of Employment Contract Law No. 20,744 (consolidated text of 1976) (the “ECL“). A summary of each implementing provision is provided below, with reference to the corresponding section of the ECL.
Employment Registration (Section 52 ECL)
Section 52 of the ECL, concerning employers’ obligation to maintain employment records, is hereby regulated. The implementing regulation provides that such obligation shall be fulfilled through the registration and deregistration of employees in the systems authorized by ARCA (Revenue Collection and Customs Control Agency). Such registration shall be sufficient for all legal purposes, and no other administrative authority may require any additional formalities.
Accordingly, the obligation to maintain employment record books, whether in physical or electronic form, is eliminated. Employment records maintained to date must nevertheless be retained, either in physical or electronic format.
Employee Benefits – Meal or Lunch Benefit (Section 103 bis ECL)
Section 103 bis of the ECL, which enumerates non-remunerative fringe benefits, is hereby regulated. Specifically, with respect to subsection (a), concerning meal services provided outside the employer’s premises, the regulation establishes that such benefit may only be implemented through services directly provided or funded by the employer and may not be substituted or compensated by cash or any other means of payment.
The regulation further establishes a monthly cap equal to forty percent (40%) of the applicable Minimum Living and Mobile Wage (Salario Mínimo Vital y Móvil – SMVM) in effect during the relevant period.
Profit- or Earnings-Sharing Schemes (Section 105 ECL)
Section 105 of the ECL, governing the methods of payment of remuneration, is hereby regulated. With respect to subsection (b), which permits partial payment in kind on a non-remunerative basis, the regulation establishes that the maximum amount payable under this modality may not exceed five percent (5%) of the employee’s annual gross remuneration.
Payroll Deductions – Union Dues and Other Withholdings (Section 132(f) ECL)
Subsection (f) of Section 132 of the ECL, which authorizes certain payroll deductions from employees, is hereby regulated. The regulation instructs the Central Bank of the Argentine Republic (BCRA) to issue supplementary regulations and supervise compliance with such deductions within the scope of its statutory authority.
Payroll Receipt (Section 140 ECL)
Section 140 of the ECL, establishing the requirements applicable to payroll receipts, is hereby regulated. The Decree provides that each payroll receipt must be organized into four distinct sections:
(a) employer and employee identification data;
(b) employer-paid statutory contributions;
(c) gross remuneration and applicable deductions; and
(d) net remuneration.
Additionally, the front page of the payroll receipt must include a summary of the employer’s total labor cost, itemized by category, including union contributions, social security contributions, health insurance contributions, INSSJP contributions, occupational risk insurance (ART), employers’ association contributions, and any other applicable items.
Each item must specify the applicable calculation basis, unit of measurement, and corresponding amount. Payroll receipts must conform to the model set forth in Annex III to the Decree.
Medical Certificates Prescribing Sick Leave (Section 210 ECL)
Section 210 of the ECL, concerning notification and verification of employee illness, is hereby regulated. The implementing regulation requires that any medical prescription ordering sick leave be issued electronically through platforms registered with the National Registry of Digital Health Platforms (ReNaPDiS) and signed by a healthcare professional duly registered with REFEPS.
Exceptionally, where lack of internet connectivity can be duly substantiated, paper certificates bearing a handwritten signature shall be accepted.
In the event of a discrepancy between the employee’s medical diagnosis and the employer’s medical examination, either party may request review by an official medical board or obtain an expert opinion from healthcare institutions registered with the Federal Registry of Healthcare Establishments for a continuous period of at least five (5) years.
Employee Resignation (Section 240 ECL)
Section 240 of the ECL, governing employee resignation, is hereby regulated. The Secretariat of Labor, Employment and Social Security of the Ministry of Human Capital shall issue supplementary regulations implementing the procedure for formalizing resignations either before the competent labor administrative authority or by means of a digital resignation telegram.
Termination by Mutual Agreement (Section 241 ECL)
Section 241 of the ECL, governing termination of employment by mutual agreement of the parties, is hereby regulated. Termination agreements submitted to the competent labor administrative authority may be approved pursuant to Section 15 of the ECL, following verification of their legality, the absence of defects affecting the parties’ consent, and the fair balancing of the parties’ respective interests.
Such administrative approval shall grant the agreement full and final release effect, providing employers with a significant degree of legal certainty in the context of mutually agreed employment terminations.
Retirement – Notice to the Employer (Section 252 ECL)
Section 252 of the ECL, establishing the procedure for requiring an employee eligible for retirement to initiate retirement proceedings, is hereby regulated. The National Social Security Administration (ANSES) is instructed to implement a notification system informing both employers and entities of the National Health Insurance System of the commencement and completion of retirement proceedings.
This measure will enable employers to receive timely notice of the granting of retirement benefits and to appropriately manage the termination of the employment relationship.