The Government has recently regulated a labor reform which promises to be a historic change in the country’s labor laws. This reform, which has been agreed upon with businessmen and unionists, seeks to modernize the labor framework and address several critical aspects such as compensation, blockages, fines and the laundering of unregistered employees.
Federico Sturzenegger, Minister of Deregulation and State Transformation, and Julio Cordero, Secretary of Labor, have been in charge of providing details about this decree. One of the highlights of the labor reform It is the possibility that the parties to an employment relationship agree on a compensation system different from the current one within collective bargaining agreements, on a voluntary basis.
According to Sturzenegger, this measure aims to give the parties freedom to find mutual improvements. In addition, a new Severance Fund has been created as an alternative mechanism to the current compensation payments. This fund will allow workers to receive compensation in the event of dismissal, which could reduce costs for employers and encourage hiring.
The issue of blockades and occupations of production facilities has been one of the most contentious in the negotiations. Although the reform It includes an article that defines blockades as a cause for justified dismissal, this point has not been regulated due to the lack of agreement between unions and companies.
Therefore, any dismissal decided under this protest methodology must be settled in court. This lack of specific regulations has generated criticism from both unions and employers, who consider that a clear framework is necessary to avoid future conflicts.
As for fines, the reform The measure establishes the elimination of these restrictions for companies that regularize their unregistered workers. This measure seeks to encourage labor legalization and reduce informal work, which currently affects nearly 50% of the workforce in Argentina.
Money laundering and testing period
Labour laundering is another pillar of this reform. Article 76 of the Basic Law provides for the laundering of unregistered or under-registered employees up to the date of approval of the law. In addition, it provides for the forgiveness of debts for contributions and contributions, as well as any fine or sanction provided for in labour laws.
The labor reform It also extends the trial period for new employees and establishes a regime for independent workers with collaborators. These measures seek to make the labour market more flexible and adapt it to new economic realities.
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