President Javier Milei on Friday formally enacted his controversial Labour Modernisation Regulation (Regulation No. 27,802), accredited by Congress on February 27, by way of Decree 137/2026, printed in Argentina’s Official Gazette.
Milei’s flagship reform introduces far-reaching modifications to Argentina’s labour legal guidelines, affecting every part from the Labour Contract Regulation (Regulation No. 20,744) to collective-bargaining preparations, minimal service necessities throughout labour disputes and the creation of recent contingency funds.
The promulgation was additionally signed by Cupboard Chief Manuel Adorni and Human Capital Minister Sandra Pettovello.
Under a remaining have a look at the small print of the sweeping reform.
Adjustments to employment contracts
The legislation modifies the scope of present Labour Contract Regulation, explicitly excluding self-employed employees, service suppliers working by way of digital platforms and other people disadvantaged of their liberty. It additionally redefines work as “any lawful exercise carried out for the advantage of a celebration who has the authority to direct it, in alternate for remuneration,” and limits the presumption of an employment relationship when invoices are issued or financial institution funds might be verified.
Severance and dismissal
Underneath the revised Article 245, severance pay for dismissal with out trigger will quantity to 1 month’s wage for annually of service, calculated on the idea of the worker’s highest regular and common month-to-month remuneration in the course of the earlier 12 months. The legislation defines “common” earnings as these accrued for at the least six months over the past calendar 12 months. It additionally establishes that severance compensation “constitutes the only real relevant treatment in instances of termination with out simply trigger,” stopping parallel civil or extra-contractual claims besides in instances involving prison offences.
Labour Help Fund
One of many central pillars of the reform is the creation of Labour Help Funds (FAL), separate monetary reserves that employers should set up to cowl severance obligations. Necessary month-to-month contributions will quantity to 1 % for big firms and a couple of.5 % for micro, small and medium-sized enterprises (MiPyMEs), calculated on the idea of wages registered within the Argentine Built-in Pension System (SIPA). The funds will likely be managed by entities authorised by the Nationwide Securities Fee (CNV) and can come into pressure on June 1, 2026, with the opportunity of a six-month extension by the nationwide government department. Employers taking part within the FAL will obtain an equal discount of their employer contributions to the social safety system.
Digital platforms
Regulation 27,802 establishes a selected regulatory framework for suppliers of ride-hailing and supply providers by way of digital platforms, defining them as unbiased employees reasonably than staff. Platforms should present private accident insurance coverage, entry to coaching and digital complaint-handling mechanisms. Service suppliers will retain freedom over their schedules, connection occasions and the power to refuse requests.
Minimal providers throughout labour disputes
The laws raises the obligatory minimal service threshold throughout strikes affecting important providers to 75 % of regular operations, and to 50 % in actions thought-about of “crucial significance.” The listing of important providers is expanded to incorporate telecommunications, waste assortment, business aviation and personal safety. Actions deemed of crucial significance now embody land transport, the meals business throughout its total worth chain, banking and monetary providers and export-related actions.
Collective agreements and unions
For collective-bargaining talks, Milei’s legislation amends Regulation No. 14,250 to ascertain that expired agreements will keep solely their normative clauses till a brand new settlement is signed. Obligational clauses will solely be prolonged by settlement between the events. The laws additionally limits contributions to commerce union and employer organisations set out in collective agreements. Funds to enterprise chambers might not exceed 0.5 % of wages, whereas contributions to employees’ associations are capped at 2 %, excluding union membership dues.
Labour formalisation and tax incentives
The legislation creates the Labour Formalisation Incentive Regime (RIFL), which is able to stay in pressure for one 12 months ranging from the second month after promulgation. Employers who rent beforehand undeclared or unemployed employees can pay a diminished employer contribution charge of two % for the primary 4 years of the brand new employment relationship. The reform additionally establishes the Registered Employment Promotion Programme (PER), permitting present employment relationships to be regularised with debt forgiveness of as much as 70 % of excellent social safety liabilities. On the tax facet, the legislation introduces the Incentive Regime for Medium-Scale Funding (RIMI in its Spanish-language acronym), enabling accelerated depreciation below revenue tax and early reimbursement of VAT tax credit for productive investments by micro, small and medium-sized firms.
Repeals and judicial switch
From January 1, 2027, a number of particular labour statutes will likely be repealed, together with these overlaying travelling gross sales representatives (Regulation 14,546), journalists (Regulation 12,908) and glass business employees, who will as an alternative fall below the final labour regime. The legislation additionally approves the settlement transferring the Nationwide Labour Court docket system to the labour jurisdiction of the Metropolis of Buenos Aires, signed between the nationwide authorities and the Buenos Aires Metropolis administration on February 9, 2026. Instances presently below manner will proceed below the prevailing authorized framework till the switch course of is accomplished.
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