The Chamber of Deputies of Argentina introduced a single amendment to the bill that had previously received partial approval from the Argentine Senate and approved the remainder of the text.
Although the bill still requires final enactment, the following summarizes the aspects we consider most relevant in the areas of Labor Law and Social Security.
Amendments to the Employment Contract Law
The most significant changes would affect the following provisions of the Ley de Contrato de Trabajo.
Section 2 – Scope of Application
The scope of the law is further limited following the reforms introduced by the Ley de Bases y Puntos de Partida para la Libertad de los Argentinos. The Employment Contract Law will not apply to contracts for works, services, agency, transport and freight services, independent service providers operating through digital platforms, crew members governed by the navigation regime, persons deprived of liberty, and generally parties bound by agreements regulated under the Civil and Commercial Code.
Section 12 – Principle of Non-Waiver
The provision reverts to the wording in force prior to 2009. Rights established by statute, collective bargaining agreements or professional statutes remain non-waivable. The current reference to the individual employment contract as a source of non-waivable rights is removed, allowing contractual conditions to be modified provided that mandatory public policy provisions and minimum standards are not affected.
Section 18 – Length of Service
Length of service continues to be calculated as the sum of all periods during which an employee worked under the authority of the same employer, including cases where the employee left and was later rehired. However, if more than two years elapse between termination and re-employment by the same employer, the previous service will not be taken into account.
Section 23 – Presumption of Employment Relationship
Consistent with the Bases Law, the presumption of an employment relationship will no longer apply to contracts for works or professional services where there are no characteristics of subordination and invoices or receipts are issued.
Section 29 – Labor Intermediation
Employees will be deemed employees of the entity that registers them as such. Where employees are hired to provide services to third parties, they remain employees of the hiring entity. The user company will be jointly liable only with respect to those employees and for the period during which the services are provided, with a right of recourse against the employer.
Section 30 – Joint Liability in Outsourcing
Joint liability will not extend to ancillary or supporting activities. Where part of the normal and specific business activity is outsourced, compliance with the monthly documentary verification required under the article (verification of tax identification number, salary payments, social security contributions, occupational risk insurance and bank account of the employee) releases the contracting entity from liability. Liability will arise only if such verification is not performed.
Section 52 – Labor Registry
Employers must register employees before Agencia de Recaudación y Control Aduanero (ARCA). Traditional labor books are eliminated, although existing books must be retained physically or digitally for ten years.
Section 66 – Ius Variandi
Employers may modify non-essential terms of employment. If essential terms are altered, the employee may consider the employment terminated but may no longer seek summary judicial relief to restore previous conditions.
Section 80 – Employment Certificates
Certificates may be delivered digitally through a system to be designed by the enforcement authority. The deadline for delivery is extended to 45 business days following termination.
Section 92 ter – Part-Time Employment
The current restriction requiring a minimum reduction of one third of the normal working day is eliminated. Any reduction may be agreed upon with proportional salary adjustments.
Section 95 – Fixed-Term Contracts
Termination prior to the agreed term will only require payment of statutory severance under Section 245, calculated based on the total seniority the employee would have accumulated had the contract run its full term.
Section 103 bis – Social Benefits
Non-remunerative benefits expressly include employee meals (including meal card systems) and private health care coverage.
Section 104 bis – Dynamic Compensation
Employers may grant discretionary compensation such as performance bonuses or special payments individually or collectively. These benefits may later be discontinued without generating acquired rights.
Section 105 – Form of Salary Payment
Salary may be paid in Argentine pesos or foreign currency. Additional non-salary benefits may include share-based compensation, stock rights, securities or reimbursement of public transport expenses.
Section 124 – Bank Payment
Salaries must be paid electronically into bank accounts. Cash payment will no longer be permitted.
Section 154 – Vacations
Employers and employees may agree to grant vacation outside the October-April period and divide it into blocks of seven days.
Section 197 bis – Hours Bank
The bill introduces an overtime hours bank that may be agreed individually or collectively, allowing longer working days compensated with reduced hours on other days. A minimum twelve-hour rest period between shifts must always be respected.
Section 210 – Medical Certificates
Medical certificates must be issued digitally through authorized platforms. In case of discrepancies with employer medical control, a medical board may be convened at an official institution or a recognized medical center.
Section 228 – Liability of Business Acquirer
The acquirer of a business will only be liable for labor obligations that it knew or should have known through due diligence. Hidden liabilities or liabilities arising from misleading information provided during the acquisition will not be included.
Section 231 – Probation Period
Termination during the probation period will not require prior notice and will not generate severance obligations.
Section 241 – Termination by Mutual Disinterest
Mutual disinterest will be deemed to occur when neither party formally requests continuation of the employment relationship for a period of two months.
Section 245 – Severance Pay
The calculation base (“best normal and habitual monthly salary”) is clarified. Annual bonus, vacation pay and non-monthly bonuses will be excluded. Variable compensation must be averaged. The Supreme Court doctrine known as the “Vizzoti cap” is incorporated into statutory law. Severance will constitute the exclusive compensation for termination, excluding additional damages claims under civil law.
Section 248 – Death Compensation
Beneficiaries are defined as spouse or cohabiting partner, minor children and disabled adult children, all in equal shares. In their absence, adult children or dependent parents may claim the benefit.
Section 255 – Re-Employment
Where an employee previously dismissed is rehired and later dismissed again, total seniority will be the sum of all periods of employment. Any severance previously paid will be updated by CPI and deducted from the new indemnity.
Section 276 – Interest in Labor Litigation
For new cases, interest will be calculated as CPI plus 3% annually. For ongoing cases without final judgment, interest will follow a passive rate defined by the Banco Central de la República Argentina within a band ranging between 67% and 100% of CPI plus 3%.
Labor Assistance Fund (FAL)
The bill creates the Labor Assistance Fund (Fondo de Asistencia Laboral – FAL) designed to assist employers in covering severance and termination-related payments.
Employers must contribute monthly to a segregated account managed by authorized financial entities under the supervision of the Comisión Nacional de Valores.
Contribution rates would be:
- 1% of payroll for large companies
- 2.5% for micro, small and medium-sized enterprises
The resources of the fund will be legally protected, non-attachable and dedicated exclusively to labor indemnities.
Collective Labor Conflicts
In cases of collective labor conflict, certain essential services must maintain minimum activity levels:
- 75% of normal services for essential activities
- 50% for activities considered of critical importance
Digital Platform Work
Workers providing services through digital platforms will be considered independent contractors, maintaining freedom to choose working hours and access transparency regarding platform algorithms affecting service allocation.
Platforms must provide personal accident insurance, although its cost may be allocated depending on contractual arrangements.
Collective Bargaining Agreements
The bill modifies the regime of Ley de Convenciones Colectivas de Trabajo:
- After expiration, only normative provisions remain in force.
- Contributions to employer associations cannot exceed 0.5% of wages.
- Contributions to labor unions cannot exceed 2% of wages.
- Company-level agreements may prevail over broader sector agreements within their scope.
Incentive Regime for Labor Formalization (RIFL)
The bill introduces a regime to promote new registered employment by granting employers a significant reduction in employer social security contributions for 48 months.
Eligible workers include individuals who:
- did not have registered employment as of December 10, 2025,
- were unemployed during the previous six months,
- were registered as small taxpayers (Monotributo), or
- previously worked in the public sector.
Labor Regularization Program
A new labor regularization (amnesty) regime will remain open for 180 days following its regulation, allowing employers to regularize undeclared employees while extinguishing sanctions and condoning at least 70% of outstanding liabilities.
Repeal of Special Labor Statutes
The bill also repeals several special statutes, including:
- Professional Journalist Statute
- Commercial Travelers Statute
- Telework Law
- Hairdresser Statute