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Argentina Moves Forward on Labor Reform Draft With 'Hours Bank'

Congress will take up the package in extraordinary sessions after the government circulated a draft detailing how time banking would operate.

Overview

  • Officials confirmed extraordinary sessions to debate the reform as labor lawyer Julián de Diego said he is collaborating on a draft to be presented in mid‑December featuring firm‑level bargaining, productivity‑linked pay and a bank of hours.
  • The plan, driven by Deputy Romina Diez’s bill adding Article 197 bis to the Labor Contract Law, would let collective agreements convert overtime into compensatory time off under a flexible “elastic workday” framework described by Labor Secretary Julio Cordero.
  • Reporting states the draft preserves Article 201 overtime surcharges (50% on weekdays, 100% on weekends and holidays) and sets procedural safeguards, including a minimum 12 hours between shifts and a 48‑hour weekly cap.
  • New elements under discussion reported in the draft include allowing up to 12‑hour daily schedules, partial payment with meal vouchers and severance paid in as many as 12 installments, echoing provisions from the labor chapter of DNU 70/23.
  • Unions caution that without strict oversight a time‑bank could erode protections, while coverage notes comparable systems exist in countries such as Greece, Brazil, Spain, France, Germany, Canada and Australia with varying controls.