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Argentina Files Sweeping Labor Overhaul With Severance Cap, Flexible Vacations and Union Dues Opt‑In

The administration is banking on new congressional strength to speed debate despite unified union resistance.

Overview

  • A draft sent into congressional debate caps severance for dismissals without cause at a maximum of 10 monthly salaries and lets SMEs pay indemnities in up to 12 installments.
  • The proposal excludes the annual bonus and other semiannual or annual payments from the indemnity calculation and revives non‑remunerative meal vouchers outside social‑security contributions.
  • Workplace rules would add a bank‑of‑hours system with daily rest of 12 hours and weekly limits, while allowing vacations to be split into blocks of at least one week and taken through April.
  • Collective bargaining would prioritize company‑level agreements over sectoral pacts, and payroll deductions for union funding would require each worker’s express consent.
  • The CGT formally rejected the plan and readied legislative, judicial and potential strike actions, as Minister Federico Sturzenegger argued the changes are needed to tackle a decade without formal job growth.