Overview

• Banks must now open cost-free individual and collective accounts for the Fondo de Cese Laboral under the Central Bank’s decree.
• The fund offers an optional substitute for traditional severance payments, activating on any contract termination when adopted through collective, company or individual pacts.
• Employers will make mandatory contributions—subject to negotiation in collective pacts—with workers allowed to top up deposits; contributions are invested in CNV-supervised FCIs or fideicomisos.
• Funds are protected from garnishment during employment before transferring to workers’ ownership at termination; accounts remain open up to 180 days.
• Analysts warn that reliance on market investments could expose workers to financial risk, dilute acquired rights and erode the punitive deterrent against unjustified dismissals.