Marval Legal Pulse - Labor modernization: new rules for modifying employment terms

In this edition of Marval Legal Pulse, we explore one of the most significant changes introduced by Argentina’s labor modernization reform: the amendment to Section 66 of the Employment Contract Law and the current scope of ius variandi.

Throughout the episode, we discuss the key aspects of the reform and its impact on managing labor relationships, in a context where organizations require greater flexibility to adapt to dynamic environments.
 

Key takeaways include:

• The removal of the “reasonableness” requirement for implementing changes in working conditions, reducing subjectivity in its assessment.
• The limitation of the concept of harm to material or economic damage, excluding moral damage from the analysis.
• The expansion of the employer’s ability to introduce changes that do not affect the essential elements of the employment contract.
• The elimination of procedural mechanisms that previously allowed employees to block changes preventively, reshaping available legal remedies.

The episode also addresses the practical implications of these changes in corporate reorganizations, compensation structures and internal policies, as well as their connection with other flexibility measures introduced by the reform.

This episode features Enrique Stile, partner in the Labor & Employment practice, and Rodrigo Mora Pereira, associate at Marval, who share their perspective on the new balance between business flexibility and employee protection.