Congress Enacts Labor Modernization Law

On February 27, 2026, the Argentine Congress enacted the Labor Modernization Law. The Law consolidates the bill that the Executive Branch had submitted on December 11, 2025, and reshapes structural aspects of Argentina’s labor system, with the declared purpose of promoting formal employment and strengthening legal certainty.
 

The new Law impacts a significant number of rules and provisions governing individual and collective labor relations, both substantive and procedural. The most relevant amendments include:

Individual employment law. The Law modifies the scope of Argentine Labor Law 20744, clarifies interpretative rules, and recognizes the possibility of agreeing on certain working conditions at the individual level. Labor registration is centralized before the Argentine Tax Authority (ARCA). The Law also authorizes full digitalization of labor documentation. The list of non-remunerative social benefits is expanded, wages may be paid in foreign currency, and digital pay slips are permitted. Regarding work time, the Law allows using hour banks and compensatory rest systems. As to termination without just cause, the Law introduces clarifications on the severance calculation base and creates the Labor Assistance Fund.

Labor procedure. The reform establishes party-driven procedural impulse, statutory time limits for proceedings lapsing, a new adjustment criterion for labor credits, and a system of binding precedents.

Collective labor law and other amendments. The Law modifies the hierarchy among collective bargaining agreements, limits ultra-activity, and redefines rules governing unfair labor practices and workplace assemblies. It also repeals certain professional statutes and the telework regime, regulates platform-based work, and introduces incentives to promote registered employment, together with reducing contributions.

Reduction of employer contributions and employment formalization. The Law reduces employer social security contributions by the percentage allocated to the Labor Assistance Fund, up to 3%, once implemented. It also creates a Registered Employment Promotion Plan, including significant waivers of social security debt, and a Labor Formalization Incentive Regime providing substantial contribution reductions for hiring new employees.
 

This reform is a structural overhaul of Argentina’s labor framework, and its effective scope will depend on regulatory implementation and judicial interpretation.