Overview
- The Milei administration filed a bill in Congress that would cap compensation for dismissal without cause at a maximum of ten monthly salaries, regardless of years of service.
- The proposal excludes the annual bonus (SAC) and other annual or semiannual payments from the severance base and revives non‑remunerative meal tickets despite past court rulings that treated such benefits as pay.
- Small and medium‑sized companies could pay severance and labor judgments in as many as 12 installments under the draft.
- The text introduces a bank of hours, allows longer daily shifts if 12 hours of rest are respected, and lets vacations be split into blocks of at least one week by agreement.
- Union deductions would require explicit worker consent and strikes in essential services would have to maintain 75% minimum service, while current law still calculates severance as one monthly salary per year of service under Law 20.744.