Overview
- After the government sent the bill to the Senate, Federico Sturzenegger outlined the four pillars focused on formal jobs, higher wages, lower litigiosity and reduced labor tax costs.
- The reform creates an employer-managed Fondo de Asistencia Laboral funded by a 3% reallocation from contributions that currently go to SIPA to finance severance and other contingencies.
- The law would apply to current employment relationships, retaining one month per year as the severance base while excluding non‑monthly items and standardizing updates to reduce judicial uncertainty.
- A voluntary bank of hours and vacation scheduling by mutual agreement are introduced, and overtime pay rules remain in place.
- Collective bargaining changes include limiting ultraactividad, giving precedence to narrower or company agreements and facilitating company‑level unions, with digitalization via a new ARCA registry and a reported transfer of labor courts as the CGT prepares a December 18 protest.