Amendments to Labor Contract Law

Expressly included in Section 17bis is the statement that "the inequities created by this law in favor of one of the parties, shall be only understood as a way of compensating other that already exist in the relationship."

According to the grounds of the Law, this amendment seeks to reflect the one-way direction of the rules governing the employment contract, highlighting that the employee is a dependant by definition who lacks the same bargaining capacity as the employer; such difference between them is shown both when celebrating the contract, during its execution and when terminated. And it is this difference between employees and their employers which has generated the need that Labor Law, through its sources, to establish a kind of equalization or compensation for these equalities.

In addition, the reestablishment of the provision was included in the original Section 19 of the Conditions of Employment Agreement approved by Law No. 20,744 would give greater emphasis to the recognition of the inequalities that exist in an employment relationship and protective function of labor law, and this incorporated Section has an informative and interpretative function for judges.