The opening of the next legislature, starting today, should serve so that, as the president of the Chamber of Deputies recently urged, Alfredo Pachecoa new stage of negotiations is inaugurated aimed at reaching a comprehensive agreement on the new Labor Codewithout unilateral exclusions or arbitrary decisions.
The orientation of this dialogue must seek a sensible balance between the essential protection of the worker and the reduction—or elimination—of the rigidities that make hiring more expensive and encourage informality.
Several countries of Latin America They have already moved in that direction. The Argentine Parliament, for example, is currently aware of a proposal that, among other aspects, grants greater flexibility to companies for the payment of compensation by dividing it into installments.
In the case of small and medium-sized companies (SMEs), it is proposed to allow the payment of severance compensation in twelve monthly installments, adjusted for inflation (CPI) plus an interest rate of 3%. For large companies, payment could be made in six installments.
However, we understand that, in our country, the reform of the cost of dismissal compensation should not become the exclusive axis of the debate. The true core of labor transformation must focus on increasing formality, productivity and the generation of stable employment. All in all, compensation constitutes a structural piece that must find its right balance: reasonable enough not to inhibit hiring and necessarily protective to preserve the dignity of work. This is not a minor issue and, therefore, it cannot be marginalized.
The very fact that the business sector has expressed concern for decades about the way in which the current labor code regulates the payment of compensation for unjustified dismissal is proof that it is a structural problem, not a simple temporary convenience. Therefore, the issue must be addressed together with the other aspects of the reform, without fear or ties, to extract the best possible from a process that allows the country to take the leap towards luminous development, supported by the generation of quality jobs.
How does this aspect affect economic reality? If the cost is excessively high, it discourages contracting, increases the risk of business bankruptcy, expands informality and stimulates litigation. If it is too low, however, it can lead to excessive turnover, weaken job stability and erode social cohesion.
The bet must be oriented towards a technically sound middle point: that the relationship between worker and company is predictable, proportional and non-confiscatory, aligned with productivity and complemented with adequate social protection mechanisms.
Because the reform must guarantee that the bond between employer and worker is not a chain that imprisons nor a loose wing that unprotects, but rather a firm bridge through which both can move towards a shared future.
